4 ms·

Huh? What's to stop them from doing this to credit cards? Edit: To clarify, I understood the parent comment to mean that this lowering of limits was why I shou

Huh? What's to stop them from doing this to credit cards? Edit: To clarify, I understood the parent comment to mean that this lowering of limits was why I should use credit cards over debit cards.

deleted 13y ago
[deleted]
zevyoura 13y ago
It's not that they couldn't do it to credit cards, but credit cards generally have better consumer fraud protections than debit cards.
w4 13y ago
You can easily reverse the charges on credit cards, unlike (usually, though not in this case per the banks' statements) debit cards.
- gwillen 13y ago
  Debit cards with a Visa or Mastercard logo have the same protections as credit cards, by contract (though unlike credit cards not by law), when used for non-PIN transactions.
  - jedbrown 13y ago
    The difference is that between the time of the fraudulent charge and its resolution, your money is not in your account. With a credit card, it never makes it that far.
cynwoody 13y ago
Nothing. The difference is that, when fraudsters hit your credit card, you're not out any money, ab initio. You call the card company and make them take the fraudulent charge off your bill. If they refuse, they have to sue to get your money. But if the bad boys nail your debit card, your account is dinged immediately, and you have to deal with the bank to get your funds restored. Therefore, you should use ATM cards at ATMs only and only use credit cards to shop and travel and dine out (and enjoy the float and the points and pay in full every month). If your ATM card has a credit card logo (called a "check card"), call your bank and complain, and they'll issue you one that is only an ATM card and cannot be used to shop without a PIN. It's worth noting that the Target case is confined to credit cards, not debit cards. To hack a debit card, the attacker must intercept both the mag stripes and the PIN that goes with them. That's hard to do, given the way PIN pads work. Reportedly, in the Target case, they did not succeed in doing that.
- rm999 13y ago
  There are a few inaccuracies in your comment. >If they refuse, they have to sue to get your money First, they wouldn't refuse (at least in the USA) because Visa and Mastercard contractually require issuers to cover debit cards at the same level as they do for credit cards, which is complete protection from all liability. Second, with credit cards you can't just decide what to pay off and what not to. If the issuer refuses fraud protection to you for whatever reason your credit rating is on the line if you don't pay off the balance. They may sue you, and they may damage your ability to get credit for a long time. In other words, the situation between debit and credit card protection is basically the same: in both cases the issuer will almost certainly protect you, and you're screwed if they don't. > To hack a debit card, the attacker must intercept both the mag stripes and the PIN that goes with them. This is not true in the USA. Debit cards can be used in non-point of sale transactions (e.g. phone or internet) and point of sale non-PIN "signature" transactions where you use your debit card like a credit card.
  - cynwoody 13y ago
    >Debit cards can be used in non-point of sale transactions (e.g. phone or internet) and point of sale non-PIN "signature" transactions where you use your debit card like a credit card. That's true of most debit cards, namely the ones that sport a Visa or MasterCard logo. They are called "check cards" and can be used in either debit mode (enter PIN on PINpad, no signature) or credit mode (sign if over the merchant-defined limit). Either way, the charge goes against your bank account as soon as the bank receives it. The difference between credit and debit mode is in who processes the charge. For PIN-less signature mode, the credit card network handles the transaction. For PIN debit mode, the debit network (e.g. NYCE) handles it. The debit networks are immediate: the money comes right out of your account. The credit card networks are slower. It may take a day or two for a transaction to hit your account. I remember fifteen or twenty years ago when my bank introduced check cards. I called them and asked if the new MC logo meant the card could be used without entering a PIN. They said yes, and I said I didn't want it. A replacement minus the logo (and with a different PAN) arrived a day or two later.
- dingaling 13y ago

Huh? What's to stop them from doing this to credit cards? Edit: To clarify, I understood the parent comment to mean that this lowering of limits was why I should use credit cards over debit cards.

deleted 13y ago

[deleted]

zevyoura 13y ago

It's not that they couldn't do it to credit cards, but credit cards generally have better consumer fraud protections than debit cards.

w4 13y ago

You can easily reverse the charges on credit cards, unlike (usually, though not in this case per the banks' statements) debit cards.

gwillen 13y ago
Debit cards with a Visa or Mastercard logo have the same protections as credit cards, by contract (though unlike credit cards not by law), when used for non-PIN transactions.
- jedbrown 13y ago
  The difference is that between the time of the fraudulent charge and its resolution, your money is not in your account. With a credit card, it never makes it that far.

cynwoody 13y ago

Nothing. The difference is that, when fraudsters hit your credit card, you're not out any money, ab initio. You call the card company and make them take the fraudulent charge off your bill. If they refuse, they have to sue to get your money. But if the bad boys nail your debit card, your account is dinged immediately, and you have to deal with the bank to get your funds restored. Therefore, you should use ATM cards at ATMs only and only use credit cards to shop and travel and dine out (and enjoy the float and the points and pay in full every month). If your ATM card has a credit card logo (called a "check card"), call your bank and complain, and they'll issue you one that is only an ATM card and cannot be used to shop without a PIN. It's worth noting that the Target case is confined to credit cards, not debit cards. To hack a debit card, the attacker must intercept both the mag stripes and the PIN that goes with them. That's hard to do, given the way PIN pads work. Reportedly, in the Target case, they did not succeed in doing that.

rm999 13y ago
There are a few inaccuracies in your comment. >If they refuse, they have to sue to get your money First, they wouldn't refuse (at least in the USA) because Visa and Mastercard contractually require issuers to cover debit cards at the same level as they do for credit cards, which is complete protection from all liability. Second, with credit cards you can't just decide what to pay off and what not to. If the issuer refuses fraud protection to you for whatever reason your credit rating is on the line if you don't pay off the balance. They may sue you, and they may damage your ability to get credit for a long time. In other words, the situation between debit and credit card protection is basically the same: in both cases the issuer will almost certainly protect you, and you're screwed if they don't. > To hack a debit card, the attacker must intercept both the mag stripes and the PIN that goes with them. This is not true in the USA. Debit cards can be used in non-point of sale transactions (e.g. phone or internet) and point of sale non-PIN "signature" transactions where you use your debit card like a credit card.
- cynwoody 13y ago
  >Debit cards can be used in non-point of sale transactions (e.g. phone or internet) and point of sale non-PIN "signature" transactions where you use your debit card like a credit card. That's true of most debit cards, namely the ones that sport a Visa or MasterCard logo. They are called "check cards" and can be used in either debit mode (enter PIN on PINpad, no signature) or credit mode (sign if over the merchant-defined limit). Either way, the charge goes against your bank account as soon as the bank receives it. The difference between credit and debit mode is in who processes the charge. For PIN-less signature mode, the credit card network handles the transaction. For PIN debit mode, the debit network (e.g. NYCE) handles it. The debit networks are immediate: the money comes right out of your account. The credit card networks are slower. It may take a day or two for a transaction to hit your account. I remember fifteen or twenty years ago when my bank introduced check cards. I called them and asked if the new MC logo meant the card could be used without entering a PIN. They said yes, and I said I didn't want it. A replacement minus the logo (and with a different PAN) arrived a day or two later.
dingaling 13y ago