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I've been asking for years when this sentiment pops up, and I'm going to ask again: What specific examples are there of debit card users holding all of the risk

by ssl-3 2y ago

I've been asking for years when this sentiment pops up, and I'm going to ask again: What specific examples are there of debit card users holding all of the risk in the US? It isn't legislated as it is with credit cards, but I've so far been unable to find any instances that don't have a contractual resolution process for fraudulent charges.

graeme 2y ago
I was in Brazil once, atm skimmed my card and 100% of money in the account was withdrawn. There was a resolution process, and it was great. Bank refunded 100% of the money….after 2-3 months. I was extremely happy all things considered but you simply don’t have that risk profile with credit cards. (I had used an official atm inside a mall with armed guards and cameras, which Brazilians and guides recommended. After the incident I instead used the atm inside a bank, past their bulletproof glass and metal detected security, guarded by a guard with a machine gun. No skimming there.)
vel0city 2y ago
I've had a few friends get hit with massive fraud on their debit cards. Completely wiping them out cash-wise. They didn't have any credit cards either, because hey credit cards are evil and a trap. It left them with absolutely nothing for weeks while the bank sorted it out. They couldn't make rent. They couldn't buy groceries. They couldn't put gas in their car. Sure, the vast majority of the charges were considered fraudulent (not all) so they mostly got their money back, but it was a rough few weeks for them. I've seen that played out three times so far. Meanwhile there's been fraud on my wife's credit card a few times over the years. Zero impact to my daily life, because 1) generally the credit limits I have are far higher than the cash I'd normally keep in a checking account and 2) I could still fall back on the cash and other credit cards I had. Also, IIRC, every time I disputed those transactions I think it instantly released that credit hold on my account, so I had that credit back right away.
- fl0ki 2y ago
  Even dealing with point of sale and customer support issues becomes a lot easier when they know you're a few taps on your phone away from reversing a transaction. Make it clear that it's something you're very comfortable with, routine even, not a bother at all, and almost like you're doing them a favor by handling it on your end. They won't see it that way, of course, but it gives you all the leverage in the negotiation without it getting ugly. Try it next time someone says their point of sale policy only lets them offer you store credit or an exchange. Say, oh that's fine, my credit card lets me reverse the transaction if I couldn't resolve the matter with the store, so I'll just do that. The very next response will be a miraculous change in the store's policy.
daft_pink 2y ago
Just want to add in addition to what other users have said that the window on fraud discovery is generally much narrower on your bank account than with a credit card. You get 90 days with a credit card generally, but bank account transactions are generally 30 days or less, or even smaller for corporate accounts on some transactions.

by ssl-3 2y ago

graeme 2y ago

I was in Brazil once, atm skimmed my card and 100% of money in the account was withdrawn. There was a resolution process, and it was great. Bank refunded 100% of the money….after 2-3 months. I was extremely happy all things considered but you simply don’t have that risk profile with credit cards. (I had used an official atm inside a mall with armed guards and cameras, which Brazilians and guides recommended. After the incident I instead used the atm inside a bank, past their bulletproof glass and metal detected security, guarded by a guard with a machine gun. No skimming there.)

vel0city 2y ago

I've had a few friends get hit with massive fraud on their debit cards. Completely wiping them out cash-wise. They didn't have any credit cards either, because hey credit cards are evil and a trap. It left them with absolutely nothing for weeks while the bank sorted it out. They couldn't make rent. They couldn't buy groceries. They couldn't put gas in their car. Sure, the vast majority of the charges were considered fraudulent (not all) so they mostly got their money back, but it was a rough few weeks for them. I've seen that played out three times so far. Meanwhile there's been fraud on my wife's credit card a few times over the years. Zero impact to my daily life, because 1) generally the credit limits I have are far higher than the cash I'd normally keep in a checking account and 2) I could still fall back on the cash and other credit cards I had. Also, IIRC, every time I disputed those transactions I think it instantly released that credit hold on my account, so I had that credit back right away.

fl0ki 2y ago
Even dealing with point of sale and customer support issues becomes a lot easier when they know you're a few taps on your phone away from reversing a transaction. Make it clear that it's something you're very comfortable with, routine even, not a bother at all, and almost like you're doing them a favor by handling it on your end. They won't see it that way, of course, but it gives you all the leverage in the negotiation without it getting ugly. Try it next time someone says their point of sale policy only lets them offer you store credit or an exchange. Say, oh that's fine, my credit card lets me reverse the transaction if I couldn't resolve the matter with the store, so I'll just do that. The very next response will be a miraculous change in the store's policy.

daft_pink 2y ago

Just want to add in addition to what other users have said that the window on fraud discovery is generally much narrower on your bank account than with a credit card. You get 90 days with a credit card generally, but bank account transactions are generally 30 days or less, or even smaller for corporate accounts on some transactions.