Comments on: Should you be afraid of your debit card?

By: biggie

biggie — Fri, 29 May 2009 20:06:28 +0000

Visa is not telling the truth. The rules for credit and debit cards ARE NOT the same. Debit cards DO NOT have the same fraud protection policy as credit cards AT ALL, not even Visa debit cards.

First, if you are the victim of credit card fraud, your credit card balance goes up until you dispute the charge, but you never lose any of your money.

But if you are the victim of debit card fraud, YOUR money is GONE. Your checking account is EMPTY. If you have any checks outstanding, they will bounce, and you’ll be charged fees for that. If you need to buy groceries, you can’t, because you don’t have any money.

Second, the conditions under which you can report fraud are much more restricted for debit cards. Even Visa will only help you with fraud if you notice and report it within 60 days. Don’t open and check your bank statement right away? Sorry, your money is gone forever.

Third, there are federal laws that limit your liability for credit card fraud to $50. There are no such laws for debit cards.

Debit cards are dangerous. They give you no advantages over credit cards and come with huge risk. Don’t let a debit card issuer’s website convince you otherwise.

By: Eden

Eden — Wed, 16 Jan 2008 03:57:38 +0000

@Sarah – Thanks for stopping by. I found your site to be very helpful too. That debit cards link doesn’t seem to point to the article, but I will try to find it- I definitely want to read it!

By: Sarah Byrnes

Sarah Byrnes — Mon, 14 Jan 2008 15:06:56 +0000

Hi Eden – I just found your blog this morning, it’s really inspiring! I work for Americans for Fairness in Lending and wanted to thank you for posting our “Top Ten Tricks of the Lending Trade.” Also, we have a web page about the legal differences between credit & debit cards here, written by one of our Board members: http://www.affil.org/consumer_rsc/debit_cards.php. Laws actually require credit cards to offer more protections than debit cards are required to have. However, some banks may choose to offer more debit card protections than they are required to.

By: DebtFREE-Revolution » Blog Archive » The Great Credit Card Debate

DebtFREE-Revolution » Blog Archive » The Great Credit Card Debate — Mon, 07 Jan 2008 15:49:01 +0000

[...] some are silly (#8 is actually both) but none of them are enough to convince me and it sparked a side debate about debit card protection with Eden on her blog.Â I responded with Ways Credit Card Companies Separate You from YOUR Money [...]

By: 121st Carnival Of Debt Reduction

121st Carnival Of Debt Reduction — Mon, 07 Jan 2008 12:56:33 +0000

[...] and Fat has some information about debit cards.Â Are they [...]

By: RacerX

RacerX — Sat, 05 Jan 2008 19:36:37 +0000

Certainly Debit cards are safer in one way…your finances! They offere the convenience, but not the potential pain!

Thanks for the mention in todays post as well. Nice Blog!

By: The Great Credit Card Debate Continues…. | My Dollar Plan

The Great Credit Card Debate Continues…. | My Dollar Plan — Sat, 05 Jan 2008 14:08:16 +0000

[...] do that a debit card can’t do?Â And it seems as though the fraud protection component as Eden points outÂ is somewhat [...]

By: Mrs. Micah

Mrs. Micah — Sat, 05 Jan 2008 00:30:53 +0000

As I understand it I’m pretty well protected…unless someone gets my PIN I guess, but most people don’t know that. I don’t think anyone does.