*Did you know that under federal law, if your credit card is stolen and unauthorized charges are made on it, you will only be liable for $50. In other words, even if those charges added up to $5,000, you will only have to pay $50…and if you are considered a “good customer” – the issuer may not even charge you that
…and did I mention there are no time restrictions?
So, think back: Did you lose your credit card 8 months ago?.
Unfortunately, things are different when it comes to debit cards.
Same scenario. Different rules. You only have two days to report the loss or you could be liable for up to $500. Moreover, if you wait to report the loss more than 60 days after your statement is mailed, you could be responsible for all the unauthorized purchases.
No. We don’t like that part either.
There are many reasons you may choose to use your credit card over your debit card. Credit cards offer are all kinds of annual money-back rewards programs, but with debit not so much.
Here are 6 places you reportedly should never use your debit card at:
1. Gas pumps.
Yep! I always go inside the gas station to the counter, where the staff can take my card and swipe it in the retailers machine. You’ve heard, or maybe even experienced, those scammers who go to the pump where you have inserted your card and work their scam-magic to get your card number.
The device these scammers use can be bought online for less than a hundred bucks! So think about it: some fool is out there right now requesting it for Christmas.
They use it to lift both the card number and the PIN and when they come back to retrieve the device, they make a whole new card using YOUR info.
If you must use a debit card (with a Visa or Mastercard logo hopefully) use the “credit” NOT debit option. This way no PIN is necessary.
The payment will still come through your bank, but its processed through a credit card company, which offers an added layer of protection.
2. Online Purchases
Oh damn! With the ease of buying some of that cute stuff you see posted on Facebook, not to mention online retailers such as those on college campuses and skin care retailers, this could be a real problem. But nevertheless, here we go again with the protection issue. And credit card purchases offer greater protection. Period!
According to AARP Fraud…Along with providing added security should the retailer fall victim to a data breach – a hacker can’t overdraft your bank account with a credit card. Also, if you don’t receive the merchandise you ordered, it’s defective or the wrong item, and you can’t get a refund from the vendor, it’s easier to dispute charges with a credit card.
And don’t forget…
Many credit cards also offer extended product warranties (usually for one year beyond what’s offered by the manufacturer), and some provide price protection up to 90 days, issuing you the difference if the identical item is sold for a lower price than you paid.
Although certain debit cards offer these protections, the hassle factor can be greater.
Oh no, not restaurants!
3. Yes. Restaurants.
Do you recall we posted a story a few months back about a woman who ordered food from a restaurant’s drive thru window, and the next day noticed her card had unauthorized purchases? She went back and confronted the woman who had taken her card, and the lady didn’t even deny it — saying “I apologize.”
Anyway, the AARP Fraud blog, (shut up!) says the reason you should not use your debit card in restaurants is that it is one of the few places where your card actually leaves your sight. You know, your server comes back to get the folder with your card sticking out and smiling says, “I’ll be right back.”
Crooked servers can – and sometimes do – write down your debit card number for possible identity theft. And they don’t need a PIN. And get this: restaurants without sit-down service can pose a threat, since some (along with other businesses) keep customer payment information on file but may not safeguard it.
Ain’t that some crap!
I didn’t mean to ruin your day with this insight, but hey, better safe than sorry as they say.
Go here to read about 3 more places you should think twice before using your debit card at.
And oh yeah! Happy holidays!!