6 ms·

Are you saying they wont be able to easily recover their money? I thought there were guarantees behind this.

bsilvereagle 12y ago
A debit card is using your personal money, banks aren't necessarily going to spend resources recovering your money. Credit cards use the bank's money on credit. Most credit card users are only liable for $50 in damages.
- dublinben 12y ago
  At most. If you dispute fraudulent charges in time, you're not liable for anything. I've even had my CC bank actively call me to discuss fraudulent charges, and that my card would be replaced by the next day.
  - ambiate 12y ago
    This is true. The bank told me that _any_ debit card, if you report fraud within 2 business days, should have zero liability. I have never found a reference for that information. Someone spent $2,000 at Comcast and Neiman Marcus on my card in one night. I reported it the following day and it was reversed and I was given a new card the same day. I would love more information from a banker on how the fraud disputes are won. Sometimes the merchant pays, sometimes the bank pays, sometimes it split in percentages. I know it has to do with how the merchant processed the payment or if a pin number was used for the transaction.
    - FireBeyond 12y ago
      Mainly I'm just wondering how someone manages to spend $2,000 with Comcast at once :)
    - shiftpgdn 12y ago
      The merchant is always the loser unless the fraud was so high the merchant goes bankrupt (this happens) at which point the payment processor is on the hook.
awda 12y ago
Debit card fraud recovery is only backed by guarantees from the bank, if they choose to guarantee that. Credit card fraud recovery is mandated by the federal government.
- oasisbob 12y ago
  Consumer liability limits are mandated for both. See regulation E for more details.
oasisbob 12y ago
The protections are the same. The primary difference is in the case of fraud on a debit card, you don't have access to the stolen funds until your financial institution issues a provisional credit. (They have a short statutory time frame to do this.)

A debit card is using your personal money, banks aren't necessarily going to spend resources recovering your money. Credit cards use the bank's money on credit. Most credit card users are only liable for $50 in damages.

dublinben 12y ago
At most. If you dispute fraudulent charges in time, you're not liable for anything. I've even had my CC bank actively call me to discuss fraudulent charges, and that my card would be replaced by the next day.
- ambiate 12y ago
  This is true. The bank told me that _any_ debit card, if you report fraud within 2 business days, should have zero liability. I have never found a reference for that information. Someone spent $2,000 at Comcast and Neiman Marcus on my card in one night. I reported it the following day and it was reversed and I was given a new card the same day. I would love more information from a banker on how the fraud disputes are won. Sometimes the merchant pays, sometimes the bank pays, sometimes it split in percentages. I know it has to do with how the merchant processed the payment or if a pin number was used for the transaction.
  - FireBeyond 12y ago
    Mainly I'm just wondering how someone manages to spend $2,000 with Comcast at once :)
  - shiftpgdn 12y ago
    The merchant is always the loser unless the fraud was so high the merchant goes bankrupt (this happens) at which point the payment processor is on the hook.

awda 12y ago

Debit card fraud recovery is only backed by guarantees from the bank, if they choose to guarantee that. Credit card fraud recovery is mandated by the federal government.

oasisbob 12y ago
Consumer liability limits are mandated for both. See regulation E for more details.

oasisbob 12y ago

The protections are the same. The primary difference is in the case of fraud on a debit card, you don't have access to the stolen funds until your financial institution issues a provisional credit. (They have a short statutory time frame to do this.)