Debit card fraud

[COcheesehead]

Yep. Really a non problem, IF you know what your debit card contract says and make decisions accordingly.

I've sat in a hotel room in Italy that I could not pay for on a collect call to the US trying to resolve debit card issues. Never again. Debit cards will be used only for ATM transactions.

 

[W2R]

I've sat in a hotel room in Italy that I could not pay for on a collect call to the US trying to resolve debit card issues. Never again. Debit cards will be used only for ATM transactions.

Good idea. It's always best to plan ahead when going overseas, in case your debit card or credit card should go over its limit due to fraudulent transactions.

 

[youbet]

Since there is NO security advantage to a debit card over a credit card, there seems to be no reason to have one.

 

[Alan]

<mod hat on> If we are going to continue to debate the credit v debit card issue please let's do so in an agreeable manner<mod hat off>

 

[jazz4cash]

The funny thing about the theft of my debit card number and PIN in the bank lobby was that almost all the victims were bank customers, and also all the stolen numbers were used at a single little drugstore and used in the same way--three withdrawals for $501. I worry more about a wholescale hack on a bank's system but this seems very inefficient and withdrawing the same odd amounts is what got them caught.

Just curious.....how does that work?.

 

[audreyh1]

How does someone copy a debit card and a pin number so that they can use an ATM machine? could it have been a mis-posting problem on the banks end? Or perhaps some internal fraud?

That's what I want to know!

I'm always careful to cover the pin entry using my hand at the ATM.

I used the card at a few train ticket machines in Europe*, but most of those didn't even require a PIN!

*This was a scenario where US debit cards were accepted but not US credit cards.

 

[ShokWaveRider]

Credit Cards seem way Safer than Debit cards, we do not use Debit cards at all. While credit cards do get used fraudulently, I seem to hear more stories about Debit card fraud.

Why not use credit cards and pay them off, to me it sounds like 30 days of free money. We have way more credit that we need.

 

[Bestwifeever]

Pretty sure the little drugstore was in cahoots with the thieves--not the brightest bulbs--to make cash withdrawals.

Not a debit/credit card issue but way back in the day (pre-online banking and bill-paying) our mortgage co took three payments from our checking account one month instead of one. We had several checks bounce as a result since our balance was always hovering around between "just enough" and "how many days til payday?" and we never had an extra two mortgage payments on hand back then. The mortgage co of course made us whole by refunding all the overdraft fees etc., and at least we were in town when it happened and could get it resolved, but it was quite unsettling.

 

[mpeirce]

Since there is NO security advantage to a debit card over a credit card, there seems to be no reason to have one.

I know we're all perfect users of credit cards here and never get into trouble with them, but it's not true of everyone.

I have a "relative" who thought he was getting the best of the credit card companies. Played games to get 0% interest on balances. Etc. He was fine, except that roughly every other year he'd get tripped up. Forget to transfer a balance or run up the balance when life got "hard".

After tracking his transactions for a few years using mint.com I convinced him to stop using credit cards. They were costing him a bundle and beyond that made it just too easy to spend more money that he could afford.

He's now using a debt card and each month spends only the amount of money that gets put into his checking account (basically his SS check). This inconveniences him once in a while, but has made a big difference on his spending. And he hasn't paid a penny in interest since!

BTW, he had someone get his debit card number earlier this year and the bank called him up to tell him about it, quickly got him a new card, and he was made whole. Good bank.

 

[ShokWaveRider]

Since there is NO security advantage to a debit card over a credit card, there seems to be no reason to have one.

+ 2, May as well use a check. No value to even owning one in our household. If you cannot manage your CC debt you do not deserve to be FIREd. Sort of a contradiction in itself.

 

[gauss]

Everything has advantages and risks. I think most of us here are satisfied with our current setups.

It is good to have the discussion now and then though to make sure that our assumptions are still good and and identify any new risks that have emerged.

-gauss

 

[rodi]

I found getting cash, while travelling in Europe, cheapest with my Schwab ATM/debit card. They refund atm fees, and there was no foreign transaction fee. Not everything can be put on a credit card when you're travelling... sometimes the gelato vendor wants cash.

 

[Corporateburnout]

I found getting cash, while travelling in Europe, cheapest with my Schwab ATM/debit card. They refund atm fees, and there was no foreign transaction fee. Not everything can be put on a credit card when you're travelling... sometimes the gelato vendor wants cash.

We do the same. When we travel internationally we use our Fidelity cash management debit card for cash withdrawals from ATMs (with refundable fees and favorable exchange rates) and our Fidelity visa card for credit card purchases with a 1% transaction fee.

We carry a couple of other CC for emergencies only.

 

[audreyh1]

After my first shock of using my Fideiity debit card at a train ticket machine in Europe and not being asked for a PIN, I decided that was OK because at least I didn't have to worry about something capturing my PIN and then turning around with a cloned card at an ATM. I'm sure there is a €/$ limit on such a PINless transaction.

It also helped that I got an email immediately whenever the card was used for debit or ATM withdrawal with all the transaction details.

 

[audreyh1]

I found getting cash, while travelling in Europe, cheapest with my Schwab ATM/debit card. They refund atm fees, and there was no foreign transaction fee. Not everything can be put on a credit card when you're travelling... sometimes the gelato vendor wants cash.

I have both Schwab and Fidelity debit cards and what I found out this trip (or verified rather) was that Fidelity has the same no foreign transaction fees and fee reimbursement for ATM withdrawals. It's only for overseas debit card purchases that the Fidelity card adds a 1% foreign transaction fee.

Unfortunately I can't seem to configure Schwab Bank to text or email me when a transaction occurs. Fidelity does so immediately with all the pertinent details (ATM or debit, amount in $, location, time). I really appreciated this immediate feedback and I ended up using the Fidelity debit card more.

We tend to use cash in Europe for meals <€50, purchases <€30, taxis and tickets if the machine accepts bills. It was just easier. Stores and restaurants are happy to accept credit cards for larger amounts.

 

[14thMed]

Interesting that this came up. My Debit card from a local bank in Wisconsin was hacked this past weekend. I think it happened in a grocery store in central Florida. The withdrawals were all taken out at 3 different locations in the Chicago suburbs. Bolinbrook-Lisle etc $500.00 a pop. 14

 

[Sunset]

.....One thing that was nice is that I didn't have to pay the $50 that I think is required for credit card fraud. But then I have not had my CC long enough to have fraud on it yet, so I don't know if they still charge that or not.

I've had fraud charges on both my MC and Visa, where they issued me new numbers and new cards. Neither one charged me the $50.
Why would they want to antagonize their customer.

 

[audreyh1]

One thing that was nice is that I didn't have to pay the $50 that I think is required for credit card fraud. But then I have not had my CC long enough to have fraud on it yet, so I don't know if they still charge that or not.

$50 is not required. No credit company charges that "max charge" these days. I never have been even though I have had many incidents of credit card fraud.

 

[ERD50]

$50 is not required. No credit company charges that "max charge" these days. I never have been even though I have had many incidents of credit card fraud.

Heck, I've even heard of the CC company offering rewards for being prompt in reporting fraud. This was back in the day before so much computerized monitoring though. But I've never heard of anyone actually charged the $50 - that's a max, not a requirement.

-ERD50

 

[mathjak107]

with debit cards the saying nothing is a problem until it is a problem has never been truer . i got my money back immediately when my pin was stolen from within the banking system .

but if an investigation is needed there is no real time limit if ever . the only rule is they have to open an investigation within 10 days not finalize it . you are left wide open to the whims of the bank and not laws when things do not go to the letter .

the worst is visa says if a non visa network was used to get money than you are not covered with a debit card . like we have control over which network the bad guys use .

you don't have the same fraud protection under the law with debit cards as you do credit cards . you are subject to different rules and the whim of the bank in many circumstances involving your pin being used with debit cards . credit cards fall under the truth in lending act . debit cards fall under the electronic fund transfer act , federal reserve regulation E .

i always use credit cards for purchase.

http://www.creditcards.com/credit-ca...redit-1282.php

 

[davismills]

Someone "kited" a check and used my savings account number a number of months ago. It took USAA over a week to replace the money. Once resolved, I closed all the USAA accounts and now bank with a small local bank. The new bank insisted that I take a debit card with them. I took it and put it in my safe deposit box. Debit cards are a ticking time bomb these days. Only credit cards for me.

 

[Totoro]

After my first shock of using my Fideiity debit card at a train ticket machine in Europe and not being asked for a PIN, I decided that was OK because at least I didn't have to worry about something capturing my PIN and then turning around with a cloned card at an ATM. I'm sure there is a €/$ limit on such a PINless transaction.

Yes, it's normally 25 EUR per transaction, with a total limit of 250 EUR per day. At least that's the limit in contactless payments.

With regards to how they can get your PIN: covering up the pad is good to prevent pinhole cameras from working.

Some rigged ATMs however have a extra pressure pad underneath the keypad, so no dice in that case.

 

[Youngster]

Only ever used my debit card for ATM transactions, only at my bank's ATM's. My bank has a very good no-liability agreement.

 

[audreyh1]

Yes, it's normally 25 EUR per transaction, with a total limit of 250 EUR per day. At least that's the limit in contactless payments.

With regards to how they can get your PIN: covering up the pad is good to prevent pinhole cameras from working.

Some rigged ATMs however have a extra pressure pad underneath the keypad, so no dice in that case.

Well I had one PINless transaction that was over €34. I suspect the SCNF machines make the call, just like vendors in the US do.

Yes, I was very careful about covering hands to enter any PIN. I don't think the pressure pads are nearly as common as the pinhole cameras. Most of the ATMs I visited had keys coming up right out of the bare metal frame, so I don't see how someone could modify those keypads

Only went to banks for ATM withdrawals.

The fact that I could make PINless debit transactions was really criticized in the Tripadvisor forum in case of card loss, but between a very limited circumstances (and amounts) for using such a mode and receiving instant emails whenever a transaction occurred, I was not concerned as I felt my liability would be low.

 

[homestead]

Since there is NO security advantage to a debit card over a credit card, there seems to be no reason to have one.

I get about $16/month interest on my debit account.