FraudNews
02-05-2013, 01:23 PM
More and more folks today are using their debit card for all transactions. However, when you’re talking about fraud, debit cards and credit cards are not equal.
According to Marley Prunty-Lara from the Consumer Credit Counseling Agency, if a person signs for their transaction, they are better protected than if they entered their PIN number. A signed transaction on a debit card means a person is not responsible for any fraud.
However, liability of a VISA PIN transaction will depend on how it was processed. If VISA processed it, the cardholder will not be responsible for the fraud. Should a third-party network process the transaction, the cardholder may be on the hook for it.
If it is a MasterCard Debit card and the transaction is a fraud, the cardholder could be held liable for no more than $50 but it must be reported in two business days.
Prunty-Lara said it all boils down to when the fraudulent activity was reported as well as when the company was made aware of a lost card.
Credit cards provide zero liability for fraudulent transactions, and there’s no need to worry about being taken to the cleaners with your bank account, even if it’s a temporary matter.
Prunty-Lara said banks have 10 business days to look into the fraud, and during this time, you do not have the money. People will not be held liable; they will get the money back. However, during this investigation time, the bank account could have nothing in it.
This zero balance could result in overdraft fees.
When using a credit card to pay for a transaction, people have added security and protection in case there is fraudulent activity on the card.
According to Marley Prunty-Lara from the Consumer Credit Counseling Agency, if a person signs for their transaction, they are better protected than if they entered their PIN number. A signed transaction on a debit card means a person is not responsible for any fraud.
However, liability of a VISA PIN transaction will depend on how it was processed. If VISA processed it, the cardholder will not be responsible for the fraud. Should a third-party network process the transaction, the cardholder may be on the hook for it.
If it is a MasterCard Debit card and the transaction is a fraud, the cardholder could be held liable for no more than $50 but it must be reported in two business days.
Prunty-Lara said it all boils down to when the fraudulent activity was reported as well as when the company was made aware of a lost card.
Credit cards provide zero liability for fraudulent transactions, and there’s no need to worry about being taken to the cleaners with your bank account, even if it’s a temporary matter.
Prunty-Lara said banks have 10 business days to look into the fraud, and during this time, you do not have the money. People will not be held liable; they will get the money back. However, during this investigation time, the bank account could have nothing in it.
This zero balance could result in overdraft fees.
When using a credit card to pay for a transaction, people have added security and protection in case there is fraudulent activity on the card.