Debit card blocking and fraud

[ToomuchStuff]

I am trying to find out about this, as yesterday I went to order a part for work, and my debit card was declined. I checked my other emails, including a junkmail one, and found my card in my wallet, was used in NY for a small charge, then they tried to use it for a large charge which was blocked (but evidently put a block on the card). Credit union gave me the fraud paperwork and canceled the card, but the paperwork won't work until the block comes off. Doesn't make much sense to me since I found the fraud within 24 hours.

Anyone deal with this before?

[Teacher Terry]

Yes that is how they always deal with it. It has happened to us a few times.

[jp1]

Don't use your debit card anywhere but the atm. Credit cards have much better consumer protections. Plus, you don't risk having your bank account drained and not have enough money to pay the rent, mortgage, etc.

If you absolutely insist on using a debit card to make purchases then open a separate bank account for this purpose and only keep as much money in it as you absolutely have to.

[ToomuchStuff]

Don't use your debit card anywhere but the atm. Credit cards have much better consumer protections. Plus, you don't risk having your bank account drained and not have enough money to pay the rent, mortgage, etc.

If you absolutely insist on using a debit card to make purchases then open a separate bank account for this purpose and only keep as much money in it as you absolutely have to.

I disagree with you on the atm's. Don't use atm's!!!!!!!!!!!!!!!!!!!!!!!!!! Plan ahead, go in person and have cash, from your bank, and don't get in the habit of atm's with their fee's and the risks of skimmers on them. JMHO
No mortgage or rent (paid off my house years ago now). Bills paid with a bill checking account.
Only opened the account with this debit card, originally because Paypal required a linked account for a purchase I made (used equipment for work, $2200 verses $6K+ typically). Worth it for that savings amount.
Credit cards and debit cards have some of the same pitfalls. Both can be ran through the credit system (which offers some of the same protections). Some of the same fraud is done on both (try a small charge an then try a large charge). Big difference is the time it takes to get your money back verses everybody paying extra or fraud expediency (in the end we all pay more for fraud). Both are inconvenient to have stolen (dealt with cc theft a few years back).

[iris lilies]

Ah, debit card theft.

I am so glad I cancelled the debit card for our plant society before that became a problem. With the lackadaisical administration of our officers that included a casual approach to finances, I can just see our entire treasury of $8,000 being wiped out and no one discovering that until 3 months after it happened.

[jp1]

I disagree with you on the atm's. Don't use atm's!!!!!!!!!!!!!!!!!!!!!!!!!! Plan ahead, go in person and have cash, from your bank, and don't get in the habit of atm's with their fee's and the risks of skimmers on them. JMHO
No mortgage or rent (paid off my house years ago now). Bills paid with a bill checking account.
Only opened the account with this debit card, originally because Paypal required a linked account for a purchase I made (used equipment for work, $2200 verses $6K+ typically). Worth it for that savings amount.
Credit cards and debit cards have some of the same pitfalls. Both can be ran through the credit system (which offers some of the same protections). Some of the same fraud is done on both (try a small charge an then try a large charge). Big difference is the time it takes to get your money back verses everybody paying extra or fraud expediency (in the end we all pay more for fraud). Both are inconvenient to have stolen (dealt with cc theft a few years back).

Since my debit card is one of the new EMV (chip) cards, I'm at a lower risk of fraud from skimmers. And most of the time I use the atm that's inside the bank branch, so it's probably not going to have a skimmer on it. I'm willing to take my chances in exchange for the convenience of not having to wait in line or interact with a teller.

The big difference between debit cards and credit cards is that if the credit card gets used fraudulently it's the bank's money that's been stolen, but if it's a debit card it's your money.

[ToomuchStuff]

The big difference between debit cards and credit cards is that if the credit card gets used fraudulently it's the bank's money that's been stolen, but if it's a debit card it's your money.

In the end, the bank passes on the costs. So I see it as still my money, because they have to charge more in fee's etc.

[Tammy]

I've heard that if one runs the debit card as a credit purchase it lessens the risk. Any truth to that?

[jp1]

In the end, the bank passes on the costs. So I see it as still my money, because they have to charge more in fee's etc.

It is certainly true that the bank passes on those costs through fees they charge merchants who accept credit cards, and also through PCI fines and penalties assessed against a merchant who has a breach involving credit card numbers being stolen. But those costs are added to the price of everything everyone buys, regardless of payment method, not to individuals who happen to use a credit card for a specific purchase. The only way that will change is if a large percentage of the population stopped using credit cards, but I don't see that happening anytime soon.

[jp1]

I've heard that if one runs the debit card as a credit purchase it lessens the risk. Any truth to that?

No. All that does is increase the fees the merchant has to pay for the transaction and delays the speed with which it posts to your account by up to a couple of days instead of being instantaneous.

Whether you are protected for fraudulent charges is dependent on how the crook uses the card, not how you used it. If they use it as a debit card (they would need the PIN) then you are liable for up to $50 if you catch it within 2 days, but up to $500 if you catch it between 3 and 60 days. With a credit card, on the other hand, you are never responsible for more than $50 of fraudulent charges.

https://www.consumer.ftc.gov/article...nd-debit-cards