Debit card got skimmed?

[Ultralight]

This past weekend I had a little bit of a financial crisis scenario.

I got an oddball email on Saturday saying there was a strange purchase made with my debit card.

I checked it out, someone had made three purchases in a town called Mount Vernon -- which I am not and was not in.

I called the bank. They shut off my card.

They said my card might have gotten "skimmed" or when I made a purchase online my info could have been stolen. I had recently bought a ticket to a hockey game online. But who knows...

The lady with the bank said I should:
1. Not buy anything online with my debit card
2. Not pay for gas with my debit card at the pump

Thoughts on this?

[iris lilies]

I dont have a debit card at all, too risky.

[Ultralight]

I dont have a debit card at all, too risky.

Please explain.

[Teacher Terry]

I don;t use my debit card online but do buy gas with it.

[Gardnr]

I only use my debit card at the ATM at the bank I get it from and 1 grocery store in town that doesn't take CCs.

Credit card for anything else.

[herbgeek]

You're protected when you use a credit card, not so much with a debit card. You'd have to fight a lot harder to get your money back on an ATM withdrawal. (But even though I am aware of risk, I use my debit card for most of my in person shopping- never for on line).,

[iris lilies]

Please explain.

You are not protected as much from fraudulent transactions on a debit card as you are with a credit card. At least, that was the wisdom a few years ago.

I dont need a debit card anyway. Well, once I did need it, once in forever. It was a time I needed cash at the grocery store and they would not give cash back on a credit card purchase. And if
I had simply been carrying an ATM card, that would have worked. But I dont use those things either.

[Williamsmith]

UL, credit card companies have fraud and security offices whose job is to minimize fraud and make sure their customers continue using credit. Therefore, when you suffer a loss on your credit card through no fault of your own, you simply protest the charges, the card gets cancelled and reissued in a new number, the mail the card to you, you go on with your life. When you use a debit card, the card is linked to your bank account. Banks are not in the business of caring about their customers to the point t where they like reimbursing fraudulent activity.

Do yourself a favor, get a credit card that pays 3-5% cash back on all your purchases, pay it off every month and use your debit card only at an ATM to withdraw cash.

[Teacher Terry]

Our debit card has been used fraudulently and the bank cancelled the card and gave us back the $ with no problem. I use it for all in-person purchases and the ATM's and gas.

[Ultralight]

Dave Ramsey explained in his book that you actually do have the same protections with a debit card as you do with a credit card. Though the process can go more quickly if you pay for things as credit. Mastercard. Visa. It all applies, apparently.

This happened to me once before, with a debit card. Everything was paid back to me, but it took a couple months.

I think I will just not buy anything online -- it is rare that I purchase things online anyway. And I am using cash and Dave's envelope method for gasoline now.

I have never had a credit card, nor do I want one.

[nswef]

My debit card-always used as a credit card- had an odd charge that was denied, but I got a phone call from the bank and called them back- they issued a new card. I had only used it in a restaurant...so that has to be where it happened. I was standing right at the cash register when the charge went through. Next time, I paid cash.

[Ultralight]

I am just going to double down on using cash.

[Float On]

Our bank is so cautious they think almost every charge if fraud. They are always shutting the boys cards down because they are out of state. The accounts are flagged with what states they are in.
I don't enter pin numbers at gas stations but use the credit card feature of the debit card. Sure it puts a hold on a larger amount but that's ok. No pin number floating around. They were searching a truck the other night that had been parked at the gas station for an hour. I'm sure they were sitting there skimming cards, nice truck.
I'm giving up the debit card and going back to just using the credit card and cash. I've even started handing an actual check (free with my senior account) to the walmart or grocery store clerk - talk about old school but it gives me 2 extra days of having my money before it clears my account.


One thing I've wondered about paying ahead at the gas station before pumping. The last dollar goes so slow...am I really getting any gas?

[jp1]

Although there are protections when using your debit card the problem is that if there's a fraudulent charge it's your money out the door that needs to be replaced, vs. with a credit card where it's the banks's money that's been stolen. If your debit card is for the account you pay your rent and student loan and whatever from you run the risk of bounced transactions. In other words you run the risk of screwing up your student loan forgiveness program.

If you really feel compelled to use a debit card instead of a credit card I'd recommend opening a separate bank account, and keeping only as much money in it as you need for your purchases. That way not much money can get taken, and you'll always know you have enough money in your "other, non-debit card" account to cover your monthly bills.

[jp1]

Personally I never use a card at gas stations, always cash. Gas pumps are notoriously risky for skimmers because the attendant does not have a close eye on the pump card readers, making it fairly easy for criminals to attach skimmers.

[Williamsmith]

I use a credit card for gas purchases, restaurants and groceries as well as paying for a few other regular bills. I accumulated over $500 in cash back reward which paid for a nice portion of my New York City vacation. I have had a credit card for over 35 years and paid off the balance every month.

[Teacher Terry]

Winco won’t take CC’s. I have had one for over 40 years but just find it easier to use debit card. On big purchases we use our cash back CC.

[mschrisgo2]

I bank with one of the Big 3, and they always catch my card being used fraudulently. One time, there was a charge in France, Dubai, and India within the same minute!! Clearly not me, as I was pumping gas in California. They called to tell me they had just shut my card off. And actually, I got caught 3 times within about 6 weeks around that time.

I stopped using my ATM card at gas stations; I now have a cashback credit card I use. But it is frustrating that the lowest priced gas in town only takes cash or ATM cards. I have been cheated on the cash transactions too. Prepaid, then couldn't take the whole amount and they refused to refund the difference. And if I don't fill up, I'm buying gas every other day, what a pain!

If I'm buying something online, it has to be from a business that accepts PayPal, that way I never enter my credit card number online. I have an Amazon credit card that I use for those purchases. Also have to remember to file a "traveling" with bank...

[frugal-one]

Ditto transactions as Williamsmith. I do have a credit card that I use online only with a credit limit of $1,000. The additional benefit of using a credit card for transactions is if there is a problem with a product the card will help with the dispute. Also have cards that give cash back. ONLY use debit card for cash at local location that is monitored.

[Teacher Terry]

Our cheapest gas won’t take a CC either. We never use our debit cards on vacation.

[ToomuchStuff]

The law says if there is a fraudulent charge on your credit card, you are not responsible. I believe the law allows for a variance on debit cards, that I believe is contractually, around $50 that I could be responsible for (if you don't watch, time limit sort of thing).

I've had issues on both cards. My CC has had fraudulent charges two or three times from memory, the last of which was on a card, which had not been activated and strongly leads me to believe it was an internal theft at the issuing company. My debit card info, was stolen/used just once. I had made a LARGE equipment purchase (large enough that I called the bank, transferred money and had them temporarily raise/lift the daily limit), and did it over the phone. A few days later, some company called Lyft, in another state, emailed me one transaction (very short drive at a cost of $15), and then again a few minutes later (longer drive at $300). I contacted their fraud division after my CU rejected the second charge, and I had to tell them about the first charge (which they reversed).
My debit card has never been my primary account. It was only set up due to Paypal requirements and getting some used equipment. I do not know how to use an ATM/never have, and do NOT use it local. (know all too well from LEO relative about skimmers and prevalence) I keep very little in it, and don't connect it with the associated savings (no overdraft protection). Heard too many Paypal horror stories, even though I have never been a seller.

UL, since you seem to be able to actually get a response from DR, ask him who he uses from processing debit card transactions, as I have never found a company that does those only, rather then CC/DC.