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To be fair, I haven't had a single case of fraudulent withdrawals happen to me. But I'm curious why would a credit card transaction be more protected? It's the
by rodionos 9y ago
To be fair, I haven't had a single case of fraudulent withdrawals happen to me. But I'm curious why would a credit card transaction be more protected? It's the same purchase 'in obligation', isn't it? My checking account balance is way smaller compared to much larger credit card limits, so there is less risk in absolute terms.
- treyfitty 9y agoBecause most credit cards and debit cards follow different regulatory protections. Credit Card: FRB Regulation Z Debit Card: FRB Regulation E From a Fraud Prevention perspective, the companies are incentivized to take measures to prevent suspicious transactions from happening to begin with. With debit cards, there is a $500 liability that can be shifted to the consumer*, so less "pressure" to develop more stringent controls. Lastly, this calls for different customer experiences when you dispute Fraud (http://www.creditcards.com/credit-card-news/4-keys-zero-liability-policies-debit-credit-1282.php http://www.creditcards.com/credit-card-news/4-keys-zero-liab...).
- uiri 9y agoA checking account is money that the bank owes you. A credit card balance is money that you owe the bank. The bank cares a lot more about getting its money back than it does about getting your money back.