4 ms·

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 fr

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
> To hack a debit card, the attacker must intercept both the mag stripes and the PIN that goes with them As a naive non-credit-card-European I used my debit card in a Chicagoland Target a couple of years ago. There was no chip-reader, so the clerk took my card and swiped it for me, with a scathing glower. I stood and waited for something to sign - nope. That was it, payment accepted. I was rather shocked.

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

> To hack a debit card, the attacker must intercept both the mag stripes and the PIN that goes with them As a naive non-credit-card-European I used my debit card in a Chicagoland Target a couple of years ago. There was no chip-reader, so the clerk took my card and swiped it for me, with a scathing glower. I stood and waited for something to sign - nope. That was it, payment accepted. I was rather shocked.