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See my other reply, I was actually my job to know this stuff. As to fraud, you might be misunderstanding this. There are different types of fraud and not all a

See my other reply, I was actually my job to know this stuff. As to fraud, you might be misunderstanding this. There are different types of fraud and not all are covered the same. I don't know US legislation, but what you should know, legislation or not, Visa and Mastercard offer chargeback program (don't mistake with cashback) where you can notify your bank when the transaction was not authorized by you or when you have authorized but not received the service or the goods or services did not agree with the what you agreed with the merchant (ie. when you got blue shirt when ordered green one). This is NO QUESTIONS ASKED, ie. now it is up to the Merchant to prove that they are in the right and if they can't prove it, you are credited with the amount automatically. Now, this happens when the transaction happened through Visa/Mastercard network. When you are using the card at ATM this is fundamentally different thing. The ATM is most likely operated by your own bank or through an agreement with some other entity that is not Visa/Mastercard. You can think of this, that the card functions as an identifier that can be used to run transactions using completely different systems.

m463 6y ago
If you use your card at an ATM there is a pin. Also there are a different kind of card called a debit cards (or an atm card). These are not credit cards and withdraw money from your bank account. They require a pin as well. You can use a debit card to purchase something at a point of sale - but you must give a pin. The money is taken from your bank account (and visa/mastercard are involved) However the vast majority of point of sale transactions are credit card transactions and go through the visa/mastercard network. I used to have a debit card (decades ago) and had one fraudulent transaction. I called my bank, they credited me the money, investigated, and then made it final.
- lmilcin 6y ago
  As I said, ATMs and doing shopping at WalMart are completely different things. When you are shopping your card is used through Visa/Mastercard network. When you are at ATM your card is used in a completely separate way, basically functioning as an identifier. The same way you can use phone number to log in to your google account even though it was not originally meant for it. Also you mix debit/credit thing with other stuff. Debit and credit cards authorize the same way. The difference is how the transactions are processed at your bank, but this has nothing to do with whether the transaction is pin or signature.
  - m463 6y ago
    Yes, and a pin is required for an ATM in the US. The only time a pin is NOT required is if it goes through visa/mc. And you have protections. Please read this: https://www.daveramsey.com/blog/debit-card-fraud https://www.daveramsey.com/blog/debit-card-fraud The truth is this: Merchants WANT you to be able to use your card - without thinking, with little friction and often. They make lots more money with this state of affairs than fraud takes away.

m463 6y ago

If you use your card at an ATM there is a pin. Also there are a different kind of card called a debit cards (or an atm card). These are not credit cards and withdraw money from your bank account. They require a pin as well. You can use a debit card to purchase something at a point of sale - but you must give a pin. The money is taken from your bank account (and visa/mastercard are involved) However the vast majority of point of sale transactions are credit card transactions and go through the visa/mastercard network. I used to have a debit card (decades ago) and had one fraudulent transaction. I called my bank, they credited me the money, investigated, and then made it final.

lmilcin 6y ago
As I said, ATMs and doing shopping at WalMart are completely different things. When you are shopping your card is used through Visa/Mastercard network. When you are at ATM your card is used in a completely separate way, basically functioning as an identifier. The same way you can use phone number to log in to your google account even though it was not originally meant for it. Also you mix debit/credit thing with other stuff. Debit and credit cards authorize the same way. The difference is how the transactions are processed at your bank, but this has nothing to do with whether the transaction is pin or signature.
- m463 6y ago
  Yes, and a pin is required for an ATM in the US. The only time a pin is NOT required is if it goes through visa/mc. And you have protections. Please read this: https://www.daveramsey.com/blog/debit-card-fraud https://www.daveramsey.com/blog/debit-card-fraud The truth is this: Merchants WANT you to be able to use your card - without thinking, with little friction and often. They make lots more money with this state of affairs than fraud takes away.