Community Chat

[Irshgrl31201]

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@itiswhatitis wrote:

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@Irshgrl31201 wrote:

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@itiswhatitis wrote:

@Irshgrl31201, that's not true.  

http://www.investopedia.com/articles/personal-finance/050214/credit-vs-debit-cards-which-better.asp

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@Irshgrl31201 wrote:

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@Lipstickdiva wrote:

I'm all but done with my debit card given the issues I've had.  Yes I know that the same could happen with a credit card and I've always gotten my money back when my debit card was compromised but I'd rather deal with a CC getting compromised then a debit card linked to an account where thieves are getting my cash.

I use a CC for a lot now, not utilities though, and what I do is I still write the amount in my checkbook register as if I'm using my debit card and pulling the money out of my checking account.  Then I go into my CC account and pay what I charged.

So this past weekend I grocery shopped, put gas in my car and bought a few things on-line.  All that was entered into my checking account and today I added up all those purchases and paid that amount on my CC. 

I think if I was just charging and waiting to pay everything at the end of the month, I could end up in a little mess.  I know how I am.  LOL        

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Debit cards do not have the same protections that CC do. Most people think they do and they do not. There was a bill a while back to be passed that would give them the same protections but the last time I checked, it still hadn't passed. There are many stories out there where banks didn't cover money stolen out of accounts. My husband had a client who was one of them. He was a soldier and had quite a bit of money taken out of one of his accounts and didn't realize it for weeks because he was fighting overseas when it happened. It took him almost 3 yrs to get his money back. He was told by the bank he was supposed to have notified them within a certain time frame and of course he didn't because of his situation.  If you look at the fine print on most banks concerning debit cards they do have stipulations of time frames they have to be notified within and several other things.

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Legal protection. These are also notably different, with credit cards offering more security.

Liability for lost or stolen cards. Credit cards still offer much greater protection in most cases for those whose cards are lost or stolen. As long as the customer reports the loss or theft in a timely manner, his/her maximum liability for purchases made after the card disappeared is $50. The Electronic Funds Transfer Act gives debit card customers the same protection from loss or theft – but only if the customer reports it within 48 hours of discovery. After 48 hours, the customer’s liability rises to $500; after 60 days there is no limit.

Disputing transactions. The Fair Credit Billing Act allows credit card users to dispute unauthorized purchases or purchases of goods that are damaged or lost during shipping. But if the item was bought with a debit card, it cannot be reversed unless the merchant is willing to do so. What's more, debit card victims don't get their refund until due process has been completed. Credit card holders, on the other hand, are not assessed the fraudulent charges made in their names. While some credit and debit card providers offer zero-liability protection to their customers, the law is much more forgiving for credit card holders.

Car rentals. If you need to rent a car, most credit cards provide some sort of waiver for collisions. Even if you want to use a debit card, many car rental agencies require customers to provide credit card information as a backup. The only way out may be allowing the rental agency to put a hold of perhaps a few hundred dollars on their bank-account debit card as a form of surety deposit.

The Bottom Line

Smart shoppers who can control their spending are probably wise to reap the benefits offered by credit cards for the majority of their purchases. Debit cards protect the frugal from fees and ensure that less disciplined spenders stay within their means. For more information on the proper use of credit and debit cards, consult your bank or financial advisor.

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Your post just showed that debit cards do not have the same protection that credit cards do. There have been thousands of people who have had to wait months even years before their before their money was returned and times when it hasn't been. There has been a bill sitting and waiting to be passed that would offer the same protection as CC do.

My husbands client did not report what happened with his card for over 30 days but less than 45 days and he was out that money until it was resolved with the bank which took several years. 

• If you notify your bank before the card is used by thieves, you aren’t responsible for any charges
• Your loss is limited to $50 if you notify your financial institution within two business days after learning of the theft
• After that, your loss could be as high as $500 as long as you report within 60 days of your account statement being printed
• After that, you risk unlimited loss and responsibility for charges in your account

If you still have your card but somebody stole your card number, you have 60 days to report any fraudulent transactions and have the bank cover the losses. After 60 days, you're responsible for the charges.

While it doesn't sound plausible there are situations and have most definitely been situations where people have not been able to check their balances and did not report it for 60 days and they were responsible for whatever was taken. It happened to my husbands client and his was reported before 30 days and he was out around $20k until it was resolved which took a lot of time. 

My husband is asleep but I will ask him tomorrow what the bill is called. I am going to bed shortly too. 

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@Irshgrl31201, this could also depend on the Bank itself.  This happened to my nephew!  He didn't wait years or months to get his money back.  It took them about four days to investigate and his money was refunded to him.

It has happened to me too, and my money was returned immediately (pending the investigation).  Investigation complete and my $$ and the money returned to me was in the clear.  Not all of them are (mine was tied to my bank accounts).

There are differences in so much that a debit card may be tied to your bank accounts while a credit card is credit that is extended to you (borrowed).   .  Not all debit cards are tied to a bank account.  Have you ever seen those commercials for these cards people can get their paychecks sent to that will let them access their pay at least two days sooner?  Those debit cards with Master Card and Visa Logos are not tied to anyone's bank.  

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Just because it didn't happen to you or your nephew doesn't mean it hasn't happened to others. You do realize that don't you? You got on here to say what I wrote was not true two different times when in fact it was true and it is true that debits don't offer the same protection which even your information says. This isn't the only client of my husbands that this has happened to. He just happened to lose the most for the longest amount of time. Most people don't have other money to fall back on for that period of them. Several others lost $500 or more. If you want to share what happened with you or a family member, that is great. I am also glad that you didn't have a problem getting your money back but  do not tell me what I wrote isn't true. It absolutely did happen to him (and others) and it is absolutely true that debits don't offer the same protection

It does differ between different banks and even the same bank but different branches in different states. 

We use our CC's only and treat it like many on here do, paying the balance each month and taking advantage of the points/rewards.

[Irshgrl31201]

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@Lipstickdiva wrote:

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@Irshgrl31201 wrote:

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@Lipstickdiva wrote:

@Irshgrl31201, our debit card has a Visa logo and has the same protection as our credit card.  Our debit card was compromised several times where the card was used on-line to make purchases and the money was pulled out of our checking account.  Everytime, I was contacted by the bank's fraud department or I contacted the bank.  They provisionally replaced the money in our account and I had to go in and sign paperwork that I didn't make the purchases.  The paperwork I signed and submitted was reviewed by the bank board (I deal with a local S&L) at which time it was considered permanently back in my account. 

There was never an issue with getting our money back immediately.     

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Yes, he had that logo too and it took him that long to get his money back. Debit cards are not listed with the same protections under the Consumer Credit Act and that is what this bill is for. While many banks will offer protection some (even the big ones) need to be persuaded and taken to court to actually cover them. His bank was Bank of America and since he wasn't in a place where he could check his daily balance he didn't know it was missing. In the fine print for BOA it said it would cover theft or fraud but needed to be reported within a 3 day time frame. Many of the banks have the same wording if you read it. He is far from the only person this has happened to. My husband works in finance and he sees it frequently and that is why we don't carry debits and he advises against it until it is listed with the same protections under the CCA.

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Maybe my bank is just more accomodating.   I don't know but they told me that any card that has a Visa or MC logo has all the protections that Visa and MC offer, regardless of the card type. 

That is ridiculous that the poor guy was overseas and it took that long to get his money back. 

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Yeah, they said that to him too! I am just glad that you got it right back and didn't have to deal with that!! 

[Irshgrl31201]

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@Trinity11 wrote:

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@occasionalrain wrote:

If you pay with cash you don't establish a credit history so when you apply for a mortgage or a car loan you pay a higher rate of interest. I have six credit cards ad have never carried a balance, never paid interest on any of them. I put everything I buy on a credit card and get cash back which is no different from the interest paid to you on a savings account only while savings accounts are paying 1% or less, I'm getting 3% cash back for gas and 2% on every other prchase. Not only that, I'm getting interest on the cash waiting in the bank for my credit card bills to arrive each month.

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I learned this lesson when I dropped my wallet carrying my crying child out of a store years ago. I had just cashed my husband's check and all of our money for the next 2 weeks was lost. After that, I used credit and paid monthly everything in full. Often times I pay our bills before they are due. I love being financially responsible and taught my children the same. Also love the cash back rewards.

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Oh, I know your heart dropped to your knees when you realized that. My heart dropped just reading your post!

[Trinity11]

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@Irshgrl31201 wrote:

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@Trinity11 wrote:

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@occasionalrain wrote:

If you pay with cash you don't establish a credit history so when you apply for a mortgage or a car loan you pay a higher rate of interest. I have six credit cards ad have never carried a balance, never paid interest on any of them. I put everything I buy on a credit card and get cash back which is no different from the interest paid to you on a savings account only while savings accounts are paying 1% or less, I'm getting 3% cash back for gas and 2% on every other prchase. Not only that, I'm getting interest on the cash waiting in the bank for my credit card bills to arrive each month.

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I learned this lesson when I dropped my wallet carrying my crying child out of a store years ago. I had just cashed my husband's check and all of our money for the next 2 weeks was lost. After that, I used credit and paid monthly everything in full. Often times I pay our bills before they are due. I love being financially responsible and taught my children the same. Also love the cash back rewards.

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Oh, I know your heart dropped to your knees when you realized that. My heart dropped just reading your post!

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Hi @Irshgrl31201.....it did and it taught me a valuable lesson about not carrying a lot of cash. Besides, there have been times when the rewards from American Express have paid for some pretty nice treats...

[Irshgrl31201]

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@Trinity11 wrote:

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@Irshgrl31201 wrote:

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@Trinity11 wrote:

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@occasionalrain wrote:

If you pay with cash you don't establish a credit history so when you apply for a mortgage or a car loan you pay a higher rate of interest. I have six credit cards ad have never carried a balance, never paid interest on any of them. I put everything I buy on a credit card and get cash back which is no different from the interest paid to you on a savings account only while savings accounts are paying 1% or less, I'm getting 3% cash back for gas and 2% on every other prchase. Not only that, I'm getting interest on the cash waiting in the bank for my credit card bills to arrive each month.

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I learned this lesson when I dropped my wallet carrying my crying child out of a store years ago. I had just cashed my husband's check and all of our money for the next 2 weeks was lost. After that, I used credit and paid monthly everything in full. Often times I pay our bills before they are due. I love being financially responsible and taught my children the same. Also love the cash back rewards.

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Oh, I know your heart dropped to your knees when you realized that. My heart dropped just reading your post!

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Hi @Irshgrl31201.....it did and it taught me a valuable lesson about not carrying a lot of cash. Besides, there have been times when the rewards from American Express have paid for some pretty nice treats...

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Yes, AMEX sure does have some pretty nice treats,  that is the card we use most too! 

[lulu2]

When my husband and I married, we'd both just graduated from college  I had a job teaching in a Catholic school and he had another 4 years of education before he'd be earning any money.  We were dirt poor.  Often times we used credit cards simply because we had NO money. We lived from my paycheck to paycheck.  We carried large balances but luckily minimum payments were low and interest could be written off on income tax.  I could not imagine anyone actually paid their bills in full every statement. Most of our friends lived the same way.

We were lucky.  By the time my husband finished his schooling and training, I'd gotten a job in public school.  We thought we were rich.  We splurged on a few things then I made paying off our many  (remember every department store had its own card) credit cards.  It took almost 2 years, but one by one, I knocked them off.  Since that time we've never carried a balance.

Many of us here are of a similar age.  I'm sure we were not the only ones who started life together living off credit cards. 

[LilacTree]

Because of my good credit rating, I was offered and accepted a new card that charges no interest for 21 months to use for balance transfers and purchases.  That is the same as cash, IMO.

I paid off three other cards completely and now use only this one card.  I make substantial payments on it every month and will have it paid off completely before the 21 month deadline.  In the meantime, I have a five figure amount of credit available to me (which I don't intend to use) and my FICO scores went up 20-30 points.

ETA:  Also my car will be paid off by the end of the year. 

[itiswhatitis]

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@Irshgrl31201 wrote:

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@itiswhatitis wrote:

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@Irshgrl31201 wrote:

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@Lipstickdiva wrote:

@Irshgrl31201, our debit card has a Visa logo and has the same protection as our credit card.  Our debit card was compromised several times where the card was used on-line to make purchases and the money was pulled out of our checking account.  Everytime, I was contacted by the bank's fraud department or I contacted the bank.  They provisionally replaced the money in our account and I had to go in and sign paperwork that I didn't make the purchases.  The paperwork I signed and submitted was reviewed by the bank board (I deal with a local S&L) at which time it was considered permanently back in my account. 

There was never an issue with getting our money back immediately.     

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Yes, he had that logo too and it took him that long to get his money back. Debit cards are not listed with the same protections under the Consumer Credit Act and that is what this bill is for. While many banks will offer protection some (even the big ones) need to be persuaded and taken to court to actually cover them. His bank was Bank of America and since he wasn't in a place where he could check his daily balance he didn't know it was missing. In the fine print for BOA it said it would cover theft or fraud but needed to be reported within a 3 day time frame. Many of the banks have the same wording if you read it. He is far from the only person this has happened to. My husband works in finance and he sees it frequently and that is why we don't carry debits and he advises against it until it is listed with the same protections under the CCA.

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@Irshgrl31201, that's not true either.

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Uh, yes it is. How in the heck would you know what happened to him? 

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@Irshgrl31201, I'm not speaking for "him."  I'm speaking in general terms.  What the heck?

[itiswhatitis]

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@Irshgrl31201 wrote:

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@itiswhatitis wrote:

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@Irshgrl31201 wrote:

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@itiswhatitis wrote:

@Irshgrl31201, that's not true.  

http://www.investopedia.com/articles/personal-finance/050214/credit-vs-debit-cards-which-better.asp

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@Irshgrl31201 wrote:

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@Lipstickdiva wrote:

I'm all but done with my debit card given the issues I've had.  Yes I know that the same could happen with a credit card and I've always gotten my money back when my debit card was compromised but I'd rather deal with a CC getting compromised then a debit card linked to an account where thieves are getting my cash.

I use a CC for a lot now, not utilities though, and what I do is I still write the amount in my checkbook register as if I'm using my debit card and pulling the money out of my checking account.  Then I go into my CC account and pay what I charged.

So this past weekend I grocery shopped, put gas in my car and bought a few things on-line.  All that was entered into my checking account and today I added up all those purchases and paid that amount on my CC. 

I think if I was just charging and waiting to pay everything at the end of the month, I could end up in a little mess.  I know how I am.  LOL        

---

Debit cards do not have the same protections that CC do. Most people think they do and they do not. There was a bill a while back to be passed that would give them the same protections but the last time I checked, it still hadn't passed. There are many stories out there where banks didn't cover money stolen out of accounts. My husband had a client who was one of them. He was a soldier and had quite a bit of money taken out of one of his accounts and didn't realize it for weeks because he was fighting overseas when it happened. It took him almost 3 yrs to get his money back. He was told by the bank he was supposed to have notified them within a certain time frame and of course he didn't because of his situation.  If you look at the fine print on most banks concerning debit cards they do have stipulations of time frames they have to be notified within and several other things.

---

Legal protection. These are also notably different, with credit cards offering more security.

Liability for lost or stolen cards. Credit cards still offer much greater protection in most cases for those whose cards are lost or stolen. As long as the customer reports the loss or theft in a timely manner, his/her maximum liability for purchases made after the card disappeared is $50. The Electronic Funds Transfer Act gives debit card customers the same protection from loss or theft – but only if the customer reports it within 48 hours of discovery. After 48 hours, the customer’s liability rises to $500; after 60 days there is no limit.

Disputing transactions. The Fair Credit Billing Act allows credit card users to dispute unauthorized purchases or purchases of goods that are damaged or lost during shipping. But if the item was bought with a debit card, it cannot be reversed unless the merchant is willing to do so. What's more, debit card victims don't get their refund until due process has been completed. Credit card holders, on the other hand, are not assessed the fraudulent charges made in their names. While some credit and debit card providers offer zero-liability protection to their customers, the law is much more forgiving for credit card holders.

Car rentals. If you need to rent a car, most credit cards provide some sort of waiver for collisions. Even if you want to use a debit card, many car rental agencies require customers to provide credit card information as a backup. The only way out may be allowing the rental agency to put a hold of perhaps a few hundred dollars on their bank-account debit card as a form of surety deposit.

The Bottom Line

Smart shoppers who can control their spending are probably wise to reap the benefits offered by credit cards for the majority of their purchases. Debit cards protect the frugal from fees and ensure that less disciplined spenders stay within their means. For more information on the proper use of credit and debit cards, consult your bank or financial advisor.

---

Your post just showed that debit cards do not have the same protection that credit cards do. There have been thousands of people who have had to wait months even years before their before their money was returned and times when it hasn't been. There has been a bill sitting and waiting to be passed that would offer the same protection as CC do.

My husbands client did not report what happened with his card for over 30 days but less than 45 days and he was out that money until it was resolved with the bank which took several years. 

• If you notify your bank before the card is used by thieves, you aren’t responsible for any charges
• Your loss is limited to $50 if you notify your financial institution within two business days after learning of the theft
• After that, your loss could be as high as $500 as long as you report within 60 days of your account statement being printed
• After that, you risk unlimited loss and responsibility for charges in your account

If you still have your card but somebody stole your card number, you have 60 days to report any fraudulent transactions and have the bank cover the losses. After 60 days, you're responsible for the charges.

While it doesn't sound plausible there are situations and have most definitely been situations where people have not been able to check their balances and did not report it for 60 days and they were responsible for whatever was taken. It happened to my husbands client and his was reported before 30 days and he was out around $20k until it was resolved which took a lot of time. 

My husband is asleep but I will ask him tomorrow what the bill is called. I am going to bed shortly too. 

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@Irshgrl31201, this could also depend on the Bank itself.  This happened to my nephew!  He didn't wait years or months to get his money back.  It took them about four days to investigate and his money was refunded to him.

It has happened to me too, and my money was returned immediately (pending the investigation).  Investigation complete and my $$ and the money returned to me was in the clear.  Not all of them are (mine was tied to my bank accounts).

There are differences in so much that a debit card may be tied to your bank accounts while a credit card is credit that is extended to you (borrowed).   .  Not all debit cards are tied to a bank account.  Have you ever seen those commercials for these cards people can get their paychecks sent to that will let them access their pay at least two days sooner?  Those debit cards with Master Card and Visa Logos are not tied to anyone's bank.  

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Just because it didn't happen to you or your nephew doesn't mean it hasn't happened to others. You do realize that don't you? You got on here to say what I wrote was not true two different times when in fact it was true and it is true that debits don't offer the same protection which even your information says. This isn't the only client of my husbands that this has happened to. He just happened to lose the most for the longest amount of time. Most people don't have other money to fall back on for that period of them. Several others lost $500 or more. If you want to share what happened with you or a family member, that is great. I am also glad that you didn't have a problem getting your money back but  do not tell me what I wrote isn't true. It absolutely did happen to him (and others) and it is absolutely true that debits don't offer the same protection

It does differ between different banks and even the same bank but different branches in different states. 

We use our CC's only and treat it like many on here do, paying the balance each month and taking advantage of the points/rewards.

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@Irshgrl31201 that's not the issue.  You made a blanket statement about these cards not having the protections.  I'm telling you that they DO.  I think treatment varies by bank.  That's how I know.   I can speak from my own experiences @Irshgrl31201.  That's how I can be in this conversation in the first place.  You do know this right?  That because it didn't happen to you, that it may have for others?  Finally, it's not true (on a grand scale) as you put it.  If it were true, my analogies would be false.  

[itiswhatitis]

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@LilacTree wrote:

Because of my good credit rating, I was offered and accepted a new card that charges no interest for 21 months to use for balance transfers and purchases.  That is the same as cash, IMO.

I paid off three other cards completely and now use only this one card.  I make substantial payments on it every month and will have it paid off completely before the 21 month deadline.  In the meantime, I have a five figure amount of credit available to me (which I don't intend to use) and my FICO scores went up 20-30 points.

ETA:  Also my car will be paid off by the end of the year. 

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Because of my excellent credit (debt to income ratio) I was able to re-fi my home about three years ago to an even better rate and I pulled from the equity (not a lot) to have some things done around my home.