Do NOT, under any circumstances, use a debit card online. When the inevitable happens and someone gets ahold of that card number and makes fraudulent charges, instead of being able to "let it ride" on your CC statement while it gets investigated and adjudicated, you'll be out that money from your checking account. If they wipe out your account and cause a whole mess of overdraft fees, you'll have to live with the negative balance (and have no money to spend or pay other bills) until the entire mess gets sorted out.
10.9% and 11.9% are actually both pretty decent rates and no reason to protest anything.
Great points. Plus, not only that, but under federal law, debit cards are not required to have the same level of fraud protection and liability limits as credit cards.
Many debit card issuers are offering similar protections on debit cards now, but know that they are doing this out of their own volition (for marketing purposes, likely) and not because there is a law requiring this. Take that as you will.
Do NOT, under any circumstances, use a debit card online. When the inevitable happens and someone gets ahold of that card number and makes fraudulent charges, instead of being able to "let it ride" on your CC statement while it gets investigated and adjudicated, you'll be out that money from your checking account. If they wipe out your account and cause a whole mess of overdraft fees, you'll have to live with the negative balance (and have no money to spend or pay other bills) until the entire mess gets sorted out.
10.9% and 11.9% are actually both pretty decent rates and no reason to protest anything.
I would have to concur. My card has been used fraudulently many times over the years, and I am VERY careful about where I use them online.
Several of my cards have an option for online use, in which I get an account number only good for one transaction.
I have never had an account used fraudulently. However, I have received several notices that my information may have been stolen from a vendor or bank, a much more common event and one that cannot be prevented by avoiding online merchants. After all, even if you are not online, your merchants and your bank are.
Good point, and this is an option to consider (and yes, your second point is valid, too). For the longest time, I didn't activate the "credit" portion of my debit card (offline/signature portion--the one that runs through the Visa network) in order to minimize the risk of fraudulent use while still enabling me to withdraw money at an ATM. I'm not normally a paranoid person (I have a friend who refuses to do any online banking and I can't even understand that mindset), but since I never use my debit card (preferring the rewards of my credit cards), I figured I'd prevent the small risk in the first place. I did finally activate it for use with the offline networks before traveling overseas for an extended period in the off chance that I needed to use it in an emergency. So far, no issues.
I don't use ATM cards. If I need cash, I walk into the bank and get it from a teller. That solves the debit card number theft problem.
Great option...if you have oodles of time to kill in line and work hours that enable this. I'm usually sleeping and/or rushing off to work last minute when the banks are open. My free time is when the banks are closed.
What would you do in an emergency where you needed cash late at night?
Besides, ATM card theft is not (as I've ever understood it) an issue. If someone obtains your ATM card, they still need your PIN to access the account (and I'm not aware of too many ATMs that allow thieves to manually punch in debit card numbers). It's when your debit card is set up to run through the credit networks (i.e. a Visa Check Card or MasterMoney card) that it is exposed, as thieves can then type your debit card number into any online shopping portal. Simple solution: ask your bank for an ATM-only card (PIN-only), or, when your Visa Check Card arrives, peel off the activation sticker without activating the card.
Even though my I.D., along with thousands of others, was stolen from the State of Illinois's License Department, I have never (knock on wood) had my credit card used by anyone other than myself.
You all make it sound like it's easier for someone to use my debit card than it would be for them to use my credit card???? Am I seeing this right?
Now you've got me scared. I just signed up for a debit card at one of the banks. It's a debit/credit/ATM card. Is that safer than a simple debit card?
I've never used an ATM either. Gee, and here I thought I was doing a good thing and finally coming into the computer age.
There are three types of cards in existence:
Online debit cards ("ATM cards"): Can only be used at an ATM or at a merchant that accepts PIN-based debit transactions. Card MUST be physically present for use. Most secure, since it cannot be forged, though if someone obtains both your physical card and your PIN, there is no fraud protection unless your bank has a daily withdrawal limit to sort of limit the damage that can be done.
Offline debit cards ("Visa Check Cards" or "MasterCard MasterMoney Cards"): a hybrid between ATM cards and credit cards. Can be used at an ATM or at a merchant that accepts PIN-based debit transactions as well as merchants that are set up for credit card signature-based transactions (with the exception of some types of merchants, such as car rental agencies or some hotels, who use the credit card as a risk screening measure). If a merchant obtains your physical card and PIN, there is no fraud protection if used through the PIN network, but if your card number is compromised (or your card is stolen) and used through the signature-based credit networks, you have some fraud protection as mandated by federal law and usually more fraud protection as a policy of your bank.
Credit cards: Can only be used at merchants set up for signature-based transactions (which is nowadays more common than the PIN-based transactions). Most secure in terms of legal requirements for fraud protection, and larger banks are now offering zero liability for fraudulent activity.
So, is your check card safer than a plain ATM card? Not really, since it offers two separate avenues of risk (PIN *and* signature), but the net risk is about the same (just check your bank's fraud protection and cardholder liability policies), and it's a lot more convenient for you.
You shouldn't fear using an ATM, but if you are concerned about the very, very, very few ATMs that some disreputable merchants have set up in order to capture your card information, just make it a point to always only use ATMs that have a real bank's logo on them (that is, skip the no-name ones found in gas stations).