On Fri, 11 May 2007 15:57:45 +0200, Piero
wrote:
>My debit card has the Cirrus and Maestro logo
>I know that works also as credit card (by sign and not by PIN), but I
>never will use it in similar way.
Be aware of the liabilities of a debit card with a credit card
logo.
In the USA federal law restrits your liability for fraudulent use
of your card to $50. If a thief gets your credit card and uses it
you are not our any money. When my credit card was stolen in
Paris the thieves managed to subsequently run up about $600 on
the card. It cost me ntohing save a few postage stamps to send
back the statement marked up for the fraudulent charges. The
credit card company bears the loss in whagtever way the bear
these losses.
I have a couple of straight ATM cards (technically also debit
cards) issued by my credit unions. When I use them in an ATM or
to make a purchase I MUST use a PIN; the money is taken directly
from my account at the credit union. My protection is the PIN,
which only very well-funded thieves are likely to be able to
crack.
If you have a debit card it can also be used like a credit card,
without a PIN and without a signature. For instance, it can be
used in vending machines, gas/petrol pumps, telephones, online
purchases, etc. Nevertheless, the money comes directly out of
your account. A thief could easily take quite a bit of money out
of your account.
Your contract with the issuing bank assures you that like a
credit card you are only liable for $50. But this is a
contractual obligation, not a federal law. In fact, should the
issuer be so inclined it can make you jump through hoops to get
your money back; or it could decide it doesn't believe you and
not give the money back. And even an earnest bank will take a few
days to process your claim. Meanwhile your depleted account sits
there bouncing any checks that arrive.
To me the debit card combines the worst features of the credit
card and the ATM card.
--
************* DAVE HATUNEN (hatunen@cox.net) *************
* Tucson Arizona, out where the cacti grow *
* My typos & mispellings are intentional copyright traps * |