Another "dangers of debit cards" story

[disneysteve]

A friend of mine went on a cruise last week. He checked in with his debit card for onboard charges. He then put the card in the safe and left it there the entire trip. At the end of the cruise, he again gave them the card to check out.

After the cruise, he spent a day in Miami. They went out to dinner and his card was denied at the restaurant. He called and it turned out there were numerous unauthorized charges on his account. All were made on the cruise ship. None appeared on his account when he disembarked.

Since the only time he used the card was when he boarded and it was locked up the rest of the time, clearly a ship employee committed the fraud. Had it been a credit card and not a debit card, no problem. He could have called and contested the charges and gone about his business. But now, the money is gone from his account and he needs to wait for the bank to straighten it out and return the stolen funds. And, of course, NCL is investigating the case since it was one of their employees who robbed him.

Just one more reason why I will never use a debit card.

[Hypersion]

I've had three different credit cards that had unauthorized charges on them. All three where in my apartment where no else but me had access to them I had not used any of the three CC for over a year.

It might not have been someone on the cruise.

[LivingAlmostLarge]

Yeah, but the point is the $$$ is gone unlike a CC which is protected above $50.

[disneysteve]

Originally Posted by Hypersion

It might not have been someone on the cruise.

The unauthorized charges were all made on the ship during the cruise.

[disneysteve]

Originally Posted by LivingAlmostLarge

Yeah, but the point is the $$$ is gone unlike a CC which is protected above $50.

Yes, that was my point. I've also had an unauthorized charge on a credit card. It cost me nothing and took one simple phone call to resolve.

[zakity]

Yep, the time I was on a cruise, I used my credit card. I only use my debit card as an ATM card.

[cptacek]

Just today I got a call from my credit card company saying that my card number was on a list of stolen numbers and there were a bunch of fraudulent charges on it. They canceled that number and are sending me a new card (by tomorrow! they sure want that card in my hands, though I don't know why cause I never pay them interest ). Don't know when it could have happened, but I've been using that card for a lot of wedding expenses and for our honeymoon trip, so if even one vendor on the internet that I got decorations from had a security breach that could be it.

If it had been my debit card, I wouldn't even know about it until I balance my check book at the end of this month.

[momof1in150]

Originally Posted by LivingAlmostLarge

Yeah, but the point is the $$$ is gone unlike a CC which is protected above $50.

My debit card from USAA is protected like a credit card. I agree about not using them online but I monitor it daily and USAA is fast to put money back and then investigate.

[atomicrc11]

I agree that you should never use your debit card for anything but ATM transactions or using it as a credit card. When you use your PIN, the money is gone and it takes a long time to get it back. If you use it as a credit card, then you are protected. It is bad to use your debit card for gas as well at hotels or anything that puts a hold on your money. I also have a separate account that I actually use my debit card. The account that actually has all my money in it is at a different bank, and I never use that card for purchases.

[disneysteve]

Originally Posted by atomicrc11

I agree that you should never use your debit card for anything but ATM transactions or using it as a credit card.

How does using it as a credit card work? In this case, for example, would that have protected him from the fraudulent charges?

[Aleta]

Yes, according to my bank because your pin can be stolen. My bank told us to select credit card rather than debit card and you won't have to put in your pin number.

Personally, I don't like debit cards. I like credit cards because I feel like anything that I have bought on credit can be taken back if I'm unhappy with the purchase or service. I have only used the debit card one time and that was only to learn out to take out money if I ever need it.

For that matter, you can use a withdrawal slip at the bank or cash a check locally. It makes more sense when your bank isn't a local one and you need some extra cash.

[safari]

Originally Posted by disneysteve

How does using it as a credit card work? In this case, for example, would that have protected him from the fraudulent charges?

The money would still be gone from his bank account. Using a debit card as a credit card just means that the transaction will be processed through Visa/MasterCard, and it the retailer will pay a larger fee. It also adds more flexibility for the card holder because he can use his debit card in all places where Visa/MasterCard are accepted. You're still protected against unauthorized charges whether you use your debit card as debit or credit, but it will take time for the bank to sort it out, while your money will be gone from the checking account and you might have your checks bounce, etc. It's a lot of hassle and is simply not worth the risk. That's why I never use my debit card anywhere, except for ATM withdrawals.

[DebbieL]

I only use my debit card for ATMs and in store purchases (on occasion). I didn't even know it could be used like a credit card. I have always used a credit card for hotels, travel, etc.

[safari]

Originally Posted by DebbieL

I only use my debit card for ATMs and in store purchases (on occasion). I didn't even know it could be used like a credit card. I have always used a credit card for hotels, travel, etc.

Not all debit cards can be used as credit cards, only the ones that have Visa/MasterCard logo. When you use it as a credit card, you don't need to enter the pin code, but instead sign the receipt, just like when you use a regular credit card. Otherwise, there is no difference for you. Even though it uses the term "credit," you're not borrowing money. The money gets immediately deducted from your checking account, which is why I prefer not to use a debit card for purchases. In addition, when I use a regular credit card, I can earn rewards and cash back.

[atomicrc11]

Well, according to my bank, my Visa debit card has zero liability for fraud. I have only had 1 instance where I had a unauthorized charge. It didn't overdraw my account, so I can't say they would refund any fees (I hope they would) but I have a link in online banking for disputing debit card purchases. The debit was removed the next day and the money credited to my account. All I had to do was fill out the dispute form and it went through the process. It ended up that the merchant charged me twice. Overall not that painful of a process. Yes I do agree it is more of a pain if there is fraud in your checking account, but frankly I don't like putting everything on credit. Also, some banks including the two I use have rewards for using their debit cards.

[disneysteve]

Originally Posted by atomicrc11

Well, according to my bank, my Visa debit card has zero liability for fraud.

Yes, but the money is still gone from your account until they correct the problem and refund the fraudulent charges. With credit card fraud, you aren't actually out any money.