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Ken Fitzgerald
01-19-2016, 3:35 PM
I know the difference and we have both for different reasons.

Can someone explain the difference in financial liability, if any, between a credit card and a debit card compromise being used fraudulently??

We got a call from our bank early Monday morning ( a holiday) asking for my wife. She answered and they asked if she was in New York? She replied she was at home in Idaho. It seems her debit card was being suspiciously used in NY and the bank caught it. They told her to destroy the debit card, mine hadn't been compromised and they would send her another.

Prashun Patel
01-19-2016, 3:41 PM
Can't speak to the official liability difference. However, I've dealt with Citibank and Chase on id breaches of both credit and debit cards, and the response has been swift and in my favor with minimal hassle. I experience NO difference between either type of card or company wrt fraud.

I suppose the banks know currency and credit are based only on trust, and they'll (I believe) do anything to keep your trust high.

Ken Fitzgerald
01-19-2016, 3:55 PM
Thanks Prashun!

Google was my friend and it is different for debit cards.

According to Bankrate.com.... the liability varies depending on whether a person's card or card data is stolen and when the bank is notified of the stolen data or fraudulent charges. Under some circumstances, a consumer can be liable for the entire amount.

Other than seeing fraudulent charges on the checking account, I have a hard time understanding how one would know the debit card data was compromised.

Stan Calow
01-19-2016, 4:10 PM
Ken it happened to me, and you are right. Only way to know was seeing fraudulent charges. Bank called and asked me about some charges in Ohio, and they did refund them, but I had to sign notarized statement saying they were fraudulent.

Bert Kemp
01-19-2016, 4:51 PM
I've had my Debit card compromised a couple times and both times I got a call from my bank asking if I made these purchase's . Both times I just said no and that was the end of it except they always send a new card. My big advantage is I have an alert on my debit card that sends me a text message each time my card is used so I know immediately if someone other then me tries to use my card or number. Also I check my account at least 2 or 3 times a week just to make sure nothing slips by.:)
edit theres is an alum case you can buy to put your cards in to protect them from those rf card stealer's.<< hmm no spell check LOL steelers

Charles Wiggins
01-19-2016, 4:54 PM
I know the difference and we have both for different reasons.

Can someone explain the difference in financial liability, if any, between a credit card and a debit card compromise being used fraudulently??

We got a call from our bank early Monday morning ( a holiday) asking for my wife. She answered and they asked if she was in New York? She replied she was at home in Idaho. It seems her debit card was being suspiciously used in NY and the bank caught it. They told her to destroy the debit card, mine hadn't been compromised and they would send her another.

Straight from the Federal Trade Commission's website:

If someone makes unauthorized transactions with your debit card number, but your card is not lost, you are not liable for those transactions if you report them within 60 days of your statement being sent to you.
http://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards

Chris Padilla
01-19-2016, 5:22 PM
I think your question(s) were addressed, Ken, so I just wanted to comment a bit in general about debit/credit cards.

Personally, I do not like debit cards. I don't like that cash from my account(s) can be taken out nearly immediately. That has never sat well with me.

Whenever it came time for my bank to send me a new ATM card, I would always argue with them that I only wanted an ATM card...not a debit card. I didn't want my ATM card to come with the darn MasterCard or Visa logo on it. Sometimes I would accidentally use it not paying close attention and it would, of course, pull money right away from my account. These days, it appears nearly impossible to get a straight (not debit) ATM card. Whenever I use the wrong (debit) card, and the cashier asks for my pin, I know I have used the wrong card so at least I get that warning. Still, I don't like debit cards.

Further, I like to put everything under the sun on a particular card to build up miles or cash rebates or whatever. You don't typically get such benefits with a debit card that I'm aware of or care to investigate. I also pay off my cc every month and have done so since getting my first cc in the late 80s. :D

Mike Henderson
01-19-2016, 5:48 PM
I don't see any advantage of using a debit card over a credit card, and there are perhaps a few disadvantages. I always use a credit card unless I'm getting money from an ATM.

Mike

Brian Henderson
01-19-2016, 6:12 PM
The only time that we ever had a problem with our bank card, the bank caught it immediately and my wife got a new card. That's why I've been with that bank (Wells Fargo) for more than 30 years. However, one of my best friends had a similar problem with Bank of America, where his card was being used 500 miles away, mere moments after he used it here, and they tried to make him confess to somehow teleporting 500 miles to use the card and they refused to accept it was fraud. Needless to say, I'd never be with BoA for anything and he pulled his accounts. They are a horrible bank, from everyone I've ever heard from who used them.

Charlie Velasquez
01-19-2016, 6:37 PM
We have had both my credit card and my wife's debit card compromised. In each case we were not liable for the fraudulent charges. However, we did incur a loss with our debit card.

The credit card - we notified Chase when we saw our bill and that was all there was to it. Destroyed that card and they sent out a new one.

Debit card - she went to the bank and filled out papers. Then the bank replaced our funds.
BUT, we found out about the fraudulent use because we got three overdraft returned checks in the mail. Each returned check carried an insufficient funds penalty.
The bank ate those also, so those were OK. But it did not cover the $35 per check the retail businesses charged. So we were out that penalty.

Jim Becker
01-19-2016, 6:48 PM
Ultimately, your liability may ultimately be the same with most issuers...none. But when a Debit card is compromised, it gives the perp access to your bank account balance. The issue with that is that your bank may not restore the money as quickly as you need it, and that can cause a discomforting situation. Your credit card(s) are not tied to your bank account balance. Therefore, any fraudulent activity isn't going to keep your mortgage from being paid. The "bounce" fees that Charlie mentions are also an issue with Debit Card fraud. As he noted, the bank will likely take care of you on your end, but merchants and other concerns likely will not because their bank charged them a fee when your transaction "bounced".

As a rule, I don't use a debt card, even though my ATM card can be utilized that way. I also don't have my PayPal account connected to my "real" checking account; rather, I use a free account with Capital One (used to be ING Direct and then Cap 360) that has limited funds in it.

Charlie Velasquez
01-19-2016, 7:07 PM
...As a rule, I don't use a debt card, even though my ATM card can be utilized that way. I also don't have my PayPal account connected to my "real" checking account; rather, I use a free account with Capital One (used to be ING Direct and then Cap 360) that has limited funds in it.Since our episode I have done the same thing. We opened a separate checking account for Paypal and our ATM debit. I also used that as an emergency fund for our kids when they were starting out (now they have more than me, so maybe they should start an account for me) Gave them an ATM only card. If there was an emergency while they were traveling, or we got the inevitable feeling they were in a bind, they could access the minimal funds we kept in there, or call and we could transfer some money from one of our other accounts online.

Ken Fitzgerald
01-19-2016, 8:05 PM
Personally, I don't use my debit card. The only times I have used it is when I was traveling overseas and went to a local ATM for currency for that particular country.

For years I have asked my wife not to use it and she ignored me. Today she stopped by the bank to thank them for catching the fraud, notifying us and blocking her original card. She told the lady there that I'd been trying to get her to stop using it for years and she wouldn't listen. The bank employee said I was right. Maybe since a female bank employee confirmed what I have been saying for years, the LOML will change her ways.

Jim Becker
01-19-2016, 8:25 PM
Where's a "like" button when you need it, Ken... :D :D :D

Chris Padilla
01-19-2016, 9:04 PM
Fat chance there, Ken! :D :D :D

(but good luck regardless)

Wade Lippman
01-19-2016, 10:20 PM
I don't see any advantage of using a debit card over a credit card, and there are perhaps a few disadvantages. I always use a credit card unless I'm getting money from an ATM.

Mike


Some people don't have adequate credit to get a credit card. For them debit cards are great.
Others just like to have tight controls over their spending; having to log each purchase into their check book tells them exactly what they have.

Mike Henderson
01-19-2016, 10:36 PM
Some people don't have adequate credit to get a credit card. For them debit cards are great.
Others just like to have tight controls over their spending; having to log each purchase into their check book tells them exactly what they have.
Of course, you can log credit card purchases in your check book and keep exactly the same control - but not have to pay the money until the end of the month. You don't have to use a debit card to do that. And you get the protections available on credit cards - essentially no liability for fraudulent transactions, ability to contest charges, cash back, etc.

Either way, it requires spending discipline.

Mike

Jim Koepke
01-19-2016, 11:32 PM
Needless to say, I'd never be with BoA for anything and he pulled his accounts. They are a horrible bank, from everyone I've ever heard from who used them.

One time while discussing a problem with a BofA teller she commented that "we don't need your money." After that, I made sure they do not have any of my money.

One time when I didn't have a bank account, (very young and cash based then) I took my payroll check to the BofA branch it was drawn on. They told me I needed an account to cash the check. I told them, "I will take the check back to my employer and tell him that you said it wasn't any good." They insisted the check was good, but I needed an account to cash it. I repeated my earlier statement and got up to leave. After a bit of run around they decided they would cash it.

Too much hassle for me. I did tell my boss about it and he called the bank to let them know they shouldn't mess with people trying to cash one of his company's checks.

jtk

Dan Hintz
01-20-2016, 8:32 AM
Yeah, I won't rehash the issues I had with BoA while I had my business accounts with them... a serious waste of time, money, and patience that all could have been used elsewhere to better effect.

I do not use debit cards for all of the same reasons mentioned above, and I also found it difficult to find an ATM card that wasn't also a debit card. Wachovia treated me well when they existed, and so far Wells Fargo has done me no wrong since they purchased Wachovia. Here's to hoping it stays that way...

Jim Becker
01-20-2016, 10:57 AM
TDBank will issue a "non-Debit card" ATM card on request, AFAIK. That's certainly available for minors with most banks, too, in case that's a need where someone under 18 is working and needs access to their own bank account.

Curt Harms
01-20-2016, 11:15 AM
The only times I have used it is when I was traveling overseas and went to a local ATM for currency for that particular country.

You may get a better exchange rate when doing that than when you get foreign currency prior to departure. You also may not need to carry as much cash.

Wade Lippman
01-20-2016, 2:01 PM
One time while discussing a problem with a BofA teller she commented that "we don't need your money." After that, I made sure they do not have any of my money.


A merchant that I had purchased from previously, put through a totally fraudulent charge. I was able to document that it was fraudulent, but BofA ruled against me because the merchant said it was valid.
I went to a branch and the manager agreed I proved it fraudulent. He called the credit card people for me, but they refused to do anything. BUT they told him there was an undocumented appeals process. I resubmitted the info for the appeal. A day past the deadline I called. The guy didn't know what to do because the merchant hadn't responded to the appeal; apparently they have never ruled for the consumer. I explained that he had to refund my money. He wanted more time to contact the merchant again. I told him that their own rules required them to refund my money.
He did, and I cancelled my BofA card. I detected a subtle bias towards the merchant.

Shawn Pixley
01-20-2016, 2:10 PM
My big advantage is I have an alert on my debit card that sends me a text message each time my card is used so I know immediately if someone other then me tries to use my card or number. Also I check my account at least 2 or 3 times a week just to make sure nothing slips by.:)


I have that for both my credit and debit, but filter back the notification to only those with the card not present.

Jim Becker
01-20-2016, 7:00 PM
I use the notification system with my AMEX cards, particularly for "no card present" transactions. But they are pretty vigilant, too...a few weeks ago I got notification that they detected potential fraudulent use with one of my cards...a series of small purchase attempts in Las Vegas. After a short conversation to verify what was legitimate and what was not (I use the card as cash), they issued a new one. It's likely that the number was part of one of the many hacking incidents at merchants within the past year or so as a physical card was used, but they detected it was not my chip-enabled card, even on a mag swipe. That combined with the "where and what" triggered the alarm.

Of course, it's a royal pain when a card has to be changed out, especially when there are any number of automatic transactions that hit it monthly, but the burden of adjusting for that is better than someone being able to abuse the number and cause financial loss out there for the merchants as well as myself.

Mike Henderson
01-20-2016, 7:13 PM
I use the notification system with my AMEX cards, particularly for "no card present" transactions. But they are pretty vigilant, too...a few weeks ago I got notification that they detected potential fraudulent use with one of my cards...a series of small purchase attempts in Las Vegas. After a short conversation to verify what was legitimate and what was not (I use the card as cash), they issued a new one. It's likely that the number was part of one of the many hacking incidents at merchants within the past year or so as a physical card was used, but they detected it was not my chip-enabled card, even on a mag swipe. That combined with the "where and what" triggered the alarm.

Of course, it's a royal pain when a card has to be changed out, especially when there are any number of automatic transactions that hit it monthly, but the burden of adjusting for that is better than someone being able to abuse the number and cause financial loss out there for the merchants as well as myself.
I use one card for in-person transactions (the card I carry in my wallet), a separate card for Internet purchases, and a third card for things that are recurring, such as my newspaper subscription. If any one gets compromised, I know approximately where it was compromised, and the number of places I have to change are somewhat limited.

And a story: Just recently - about two weeks ago - I received a call on my cell phone from a company to tell me that the headsets I had ordered were not in stock. Problem is - I had not ordered any headsets (and they were $570 for the two). The charge was on the card I carry in my wallet. Looking back, I could see that there was only one place - a restaurant - where the card was out of my sight (other charges were at a register where I could see the use of the card). But the real kicker was the call on my cell phone. The only place that had my cell phone number was the "frequent eater" club at that restaurant.

I cancelled the card, got a new one and reported the problem to the restaurant.

Mike

[On the card I carry in my pocket I have it set up to notify me every time a transaction is made. I actually got a notification on this fraudulent transaction but missed it.]

Mark W Pugh
01-20-2016, 8:59 PM
A side note. I do a lot of traveling around the world, and my credit cards have been compromised, but I/the bank was able to catch it. I was never responsible for fraudulent charges.

I ALWAYS use my debit card, for both US purchases and foreign ATM's, and it has not been compromised, yet. I believe the PIN system has a lot to do with it. The US banks, along with US businesses, need to get on board, with the rest of the world, and issue chip and PIN credit cards.

I routinely, a couple times a week, check my accounts on-line. Yea, what a hassle, but I spend a lot of time on-line, so the slight detour does not bother me. I would suggest banking with an institution that you can check your accounts on-line, often.

Brian Elfert
01-21-2016, 12:56 AM
Since nearly all debit cards can be used without the PIN to do transactions does the PIN really add that much security? If I somehow found your debit card I could just use it and have the store process the transaction as credit so I don't have to provide the PIN. A lot of banks and credit unions encourage debit card users to process transactions as credit simply because the bank or credit union gets a higher fee from the merchant.

Mark Blatter
01-21-2016, 1:20 AM
Ultimately, your liability may ultimately be the same with most issuers...none. But when a Debit card is compromised, it gives the perp access to your bank account balance. The issue with that is that your bank may not restore the money as quickly as you need it, and that can cause a discomforting situation. Your credit card(s) are not tied to your bank account balance. Therefore, any fraudulent activity isn't going to keep your mortgage from being paid. The "bounce" fees that Charlie mentions are also an issue with Debit Card fraud. As he noted, the bank will likely take care of you on your end, but merchants and other concerns likely will not because their bank charged them a fee when your transaction "bounced".

As a rule, I don't use a debt card, even though my ATM card can be utilized that way. I also don't have my PayPal account connected to my "real" checking account; rather, I use a free account with Capital One (used to be ING Direct and then Cap 360) that has limited funds in it.

+1 on not using debit cards. I refuse to even have one on my accounts. Cards that directly access my bank account are simply not something I want. I use my credit cards or cash. In fact I don't even have an ATM card anymore. I find I am a bit paranoid so when traveling have CC and cash. In an emergency, I can use a CC to get cash. A couple of my kids have had issues with debit cards being accessed and money taken. Yes, they have already had it returned, but it took time. Just not worth the risk. What possible advantage is there a debit or credit card?