That's wild why is there no fraud protection on debit cards? Like can't you just call your bank, say it got stolen, have em block the card and reimburse you? I can do that from my bank app, don't even have to call
With credit card fraud, the card issuer's money is at stake. With debit card fraud, your money has been stolen.
From this article: https://www.nerdwallet.com/article/credit-cards/credit-card-vs-debit-card-safer-online-purchases
If card information has been stolen and potentially fraudulent transactions have been made, two laws protect your rights. For credit cards, the primary law is the Fair Credit Billing Act, or FCBA. For debit card transactions, the Electronic Funds Transfer Act (EFTA) applies. While these laws offer some similar protections, knowing the differences iskeyto understanding why it's safer to use one type of plastic than the other.
According to the EFTA, your potential liability for fraudulent debit card transactions is virtually unlimited. You have up to60 days to report a lost or stolen card under the EFTA. After that, you simply lose whatever money was taken, even funds siphoned from linked accounts. The exact liability limits under the EFTA are:
Lost or stolen card reported before unauthorized transactions: zero liability.
Lost or stolen card reported within two days: $50 liability limit.
Lost or stolen card reported within 60 days: $500 liability limit.
After 60 days: no protection.
It's important to note that if your card is not physically lost or stolen, you have 60 days to report fraudulent transactions with zero liability. If only your card number is stolen, the 60 days start from the date of the statement on which a fraudulent transaction appears.
Under the FCBA, your maximum liability for fraudulent credit card transactions is $50. If you report your card lost or stolen before any fraudulent transactions occur, your liability is zero. Many credit cards promise zero liability for all fraudulent transactions.
Incentivizing consumer credit was a key step in making the USA what it is today.
If you pay off all your IMF/World Bank loan payments on time your interest rates don't look awful
The primary purpose of a credit card is to be predatory and the fact that they don't provide basic features such as a fraud protection on a debit card further emphasizes that
The workaround here is that debit cards are actually credit cards.
All debit cards are issued as either Visa or MasterCard and when you go to purchase something, you skip pin entry and run it as credit and Visa/Master Card instantaneously issues you a line of credit equal to what you spent then pays off that credit from your bank. Thereby putting your transaction under the protection of a credit transaction.
There are private protections like that, but not much in the way of legal protections like for credit cards, so if you don't notice very quickly or are using a service that doesn't have those conveniences, there may be more lasting damage done by debit theft (though if you are very slow in catching it, credit fraud is infamously pretty destructive too).
That is what he means.
That's wild why is there no fraud protection on debit cards? Like can't you just call your bank, say it got stolen, have em block the card and reimburse you? I can do that from my bank app, don't even have to call
From this article: https://www.nerdwallet.com/article/credit-cards/credit-card-vs-debit-card-safer-online-purchases
If card information has been stolen and potentially fraudulent transactions have been made, two laws protect your rights. For credit cards, the primary law is the Fair Credit Billing Act, or FCBA. For debit card transactions, the Electronic Funds Transfer Act (EFTA) applies. While these laws offer some similar protections, knowing the differences is key to understanding why it's safer to use one type of plastic than the other. According to the EFTA, your potential liability for fraudulent debit card transactions is virtually unlimited. You have up to 60 days to report a lost or stolen card under the EFTA. After that, you simply lose whatever money was taken, even funds siphoned from linked accounts. The exact liability limits under the EFTA are: Lost or stolen card reported before unauthorized transactions: zero liability. Lost or stolen card reported within two days: $50 liability limit. Lost or stolen card reported within 60 days: $500 liability limit. After 60 days: no protection. It's important to note that if your card is not physically lost or stolen, you have 60 days to report fraudulent transactions with zero liability. If only your card number is stolen, the 60 days start from the date of the statement on which a fraudulent transaction appears. Under the FCBA, your maximum liability for fraudulent credit card transactions is $50. If you report your card lost or stolen before any fraudulent transactions occur, your liability is zero. Many credit cards promise zero liability for all fraudulent transactions.Incentivizing consumer credit was a key step in making the USA what it is today.
Interesting. Enough protection to go on holiday with it, but damn that's wild
That's probably how they hand out more credit cards
By locking essential features behind a debt trap high interest rate credit card
Yeah they've got a totalitarian credit score system (makes you think)
Tbf if you use a credit card exactly the same as you would use your debit card the interest rate is 0
If you pay off all your IMF/World Bank loan payments on time your interest rates don't look awful
The primary purpose of a credit card is to be predatory and the fact that they don't provide basic features such as a fraud protection on a debit card further emphasizes that
The workaround here is that debit cards are actually credit cards.
All debit cards are issued as either Visa or MasterCard and when you go to purchase something, you skip pin entry and run it as credit and Visa/Master Card instantaneously issues you a line of credit equal to what you spent then pays off that credit from your bank. Thereby putting your transaction under the protection of a credit transaction.
I believe banks eat a small fee for this.
There are private protections like that, but not much in the way of legal protections like for credit cards, so if you don't notice very quickly or are using a service that doesn't have those conveniences, there may be more lasting damage done by debit theft (though if you are very slow in catching it, credit fraud is infamously pretty destructive too).
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It can vary by bank. Someone I know had her purse stolen a few years ago and getting the money back was a huge pain in the ass
The discover card was fixed in an instant, the debit card caused problems.