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I have a VISA credit card and a VISA debit card. I was under the assumption that the VISA debit card offers me the same protections as the crecit card but I th

by LandR 6y ago

I have a VISA credit card and a VISA debit card. I was under the assumption that the VISA debit card offers me the same protections as the crecit card but I think I was wrong... > Are PayPal purchases covered? You are unlikely to be protected under debit card Chargeback schemes for items purchased using PayPal. In these cases the act of loading money onto your PayPal account counts as the debit card transaction so, unless the money fails to be credited, it won't be covered. PayPal runs its own purchase protection scheme which extends some cover to your purchases, but it is in house rather than regulated by law.

commoner 6y ago
Consumer protections are based on your country's laws, but credit cards will generally have stronger protections than debit cards and bank accounts. In the US, the consumer's liability for unauthorized credit card use is capped at $50, while the liability for unauthorized debit card and bank account use is capped at $50 (2 days), capped at $500 (3-60 days), or is unlimited (61+ days) depending on when you report it. Most American financial institutions go beyond the law to promise $0 liability for unauthorized credit card use. https://www.consumer.ftc.gov/articles/pdf-0075-lost-or-stolen-credit-atm-and-debit-cards.pdf https://www.consumer.ftc.gov/articles/pdf-0075-lost-or-stole... In the US, you don't have to pay the disputed portion of a credit card bill while the chargeback investigation is ongoing. Most financial institutions will issue a temporary credit to make this clear. https://www.consumer.ftc.gov/articles/0219-disputing-credit-card-charges https://www.consumer.ftc.gov/articles/0219-disputing-credit-... If anyone here is familiar with Dutch law, the author might appreciate your input.
- fencepost 6y ago
  IIRC the institutions distributing debit cards (banks, credit unions, whatever the heck PayPal is, etc) will often 'voluntarily' give you effectively the same protections as for credit cards at their discretion because they want you to have and use those cards and the benefit they get through transaction fees, etc. outweighs the cost of the fraud that happens. Details are likely spelled out in the multipage 5-pt text pamphlet that you received with a new debit card at some point.
  - commoner 6y ago
    Yes, I've seen debit cards that have $0 liability guarantees backed by the financial institution. Since this reflects well on the institution, it will typically advertise the guarantee somewhere prominent, such as a list of features. In the US, debit cards command different processing fees for the card issuer depending on how the transaction is processed. Sometimes, when using a debit card in person, the checkout terminal will ask the customer to choose "credit" or "debit" for the transaction. Choosing "credit" instead of "debit" grants the card issuer a much larger processing fee. Some financial institutions only offer certain features (including liability guarantees or rewards) when the debit card is used to make a "credit" transaction. Almost all online debit card transactions are processed as "credit" (which does not require you to enter a PIN). About the status of PayPal: it is licensed as a money transmitter but manages a network of bank subsidiaries and third-party bank accounts to profit from interest rate arbitrage and perform other activities that banks would do. https://ftalphaville.ft.com/2015/08/06/2136828/is-it-a-bank-a-money-transmitter-or-a-silicon-valley-shadow-financier-no-its-just-paypal/ https://ftalphaville.ft.com/2015/08/06/2136828/is-it-a-bank-...
- ma2rten 6y ago
  But how would that work in this case? The customer authorized paypal to be used for facebook ads, someone ran facebook ads using their account. If I give my Amazon log in credentials to someone and they order a bunch of expensive TVs to their house without my knowledge, can I get a chargeback?
  - commoner 6y ago
    Yes, in the US. If the person makes the transaction without your permission, it is considered fraud and is legitimate grounds for a chargeback, even if you provided them with the means to make the purchase (credit card information, account credentials, etc.) in the first place. In the US, you may also want to file a fraud report to the FTC and to your local police department. https://www.ftc.gov/faq/consumer-protection/submit-consumer-complaint-ftc https://www.ftc.gov/faq/consumer-protection/submit-consumer-...

by LandR 6y ago

commoner 6y ago

Consumer protections are based on your country's laws, but credit cards will generally have stronger protections than debit cards and bank accounts. In the US, the consumer's liability for unauthorized credit card use is capped at $50, while the liability for unauthorized debit card and bank account use is capped at $50 (2 days), capped at $500 (3-60 days), or is unlimited (61+ days) depending on when you report it. Most American financial institutions go beyond the law to promise $0 liability for unauthorized credit card use. https://www.consumer.ftc.gov/articles/pdf-0075-lost-or-stolen-credit-atm-and-debit-cards.pdf https://www.consumer.ftc.gov/articles/pdf-0075-lost-or-stole... In the US, you don't have to pay the disputed portion of a credit card bill while the chargeback investigation is ongoing. Most financial institutions will issue a temporary credit to make this clear. https://www.consumer.ftc.gov/articles/0219-disputing-credit-card-charges https://www.consumer.ftc.gov/articles/0219-disputing-credit-... If anyone here is familiar with Dutch law, the author might appreciate your input.

fencepost 6y ago
IIRC the institutions distributing debit cards (banks, credit unions, whatever the heck PayPal is, etc) will often 'voluntarily' give you effectively the same protections as for credit cards at their discretion because they want you to have and use those cards and the benefit they get through transaction fees, etc. outweighs the cost of the fraud that happens. Details are likely spelled out in the multipage 5-pt text pamphlet that you received with a new debit card at some point.
- commoner 6y ago
  Yes, I've seen debit cards that have $0 liability guarantees backed by the financial institution. Since this reflects well on the institution, it will typically advertise the guarantee somewhere prominent, such as a list of features. In the US, debit cards command different processing fees for the card issuer depending on how the transaction is processed. Sometimes, when using a debit card in person, the checkout terminal will ask the customer to choose "credit" or "debit" for the transaction. Choosing "credit" instead of "debit" grants the card issuer a much larger processing fee. Some financial institutions only offer certain features (including liability guarantees or rewards) when the debit card is used to make a "credit" transaction. Almost all online debit card transactions are processed as "credit" (which does not require you to enter a PIN). About the status of PayPal: it is licensed as a money transmitter but manages a network of bank subsidiaries and third-party bank accounts to profit from interest rate arbitrage and perform other activities that banks would do. https://ftalphaville.ft.com/2015/08/06/2136828/is-it-a-bank-a-money-transmitter-or-a-silicon-valley-shadow-financier-no-its-just-paypal/ https://ftalphaville.ft.com/2015/08/06/2136828/is-it-a-bank-...
ma2rten 6y ago
But how would that work in this case? The customer authorized paypal to be used for facebook ads, someone ran facebook ads using their account. If I give my Amazon log in credentials to someone and they order a bunch of expensive TVs to their house without my knowledge, can I get a chargeback?
- commoner 6y ago
  Yes, in the US. If the person makes the transaction without your permission, it is considered fraud and is legitimate grounds for a chargeback, even if you provided them with the means to make the purchase (credit card information, account credentials, etc.) in the first place. In the US, you may also want to file a fraud report to the FTC and to your local police department. https://www.ftc.gov/faq/consumer-protection/submit-consumer-complaint-ftc https://www.ftc.gov/faq/consumer-protection/submit-consumer-...