Debit Cards versus Credit Cards

$1500? That must have been in the last couple of months!

Good one! :slight_smile:
Actually, it was several years ago. And, it was the only experience I had where the credit card company did not flag some purchase as possibly fraudulent when it should have screamed out red-flag! I noticed them when I happened to log-on to my PenFed account to check something else. Two charges for $550 each in Washington State, two for $150 each in Oregon and a few other minor ones. From what I could tell, they were purchases at major fuel depots for commercial drivers. Since all of my purchases were in California and in the ~$30s range and at regular gas stations, this was obviously out of the ordinary. They were fortunate that I saw that and called them.

And, PenFed made me complete an affidavit attesting that I did not make those charges, which I gladly did. They were all disallowed. Later, PenFed posted the 5% cash rebate for those charges. Just to be sure, I called them and asked if I had to pay them back or if they would be clawed back. The representative told me that neither would happen and that I got a windfall from that experience.

I use text message alerts the instant a new charge hits. That way the fraud events don’t get stale

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Is that the banks rules? Or is that policy recognized by the feds? I just don’t use my debit card for most purchases. I think the security it’s not the same as a standard credit card, with the protection part.

That’s long been the myth but not true. I challenged a debit charge and bank credited the amount back to me, cancelled the card and mailed a new one.

Yes, but the money was gone from you account for a time. That’s the real problem.

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Yeah, about five minutes. I can live with that. Got a txt msg and quickly called.

The debit card I carry is linked to a second checking account that never has more than $500 in it, and can only be used up to $250 per day.

My long time CC has a cap of $18,000.

It was easy to decide which card to carry and risk losing.

In the theft of my bill fold the thief used my debit card with out the pin number.

I have noted at some transactions you can use the debt card as a “credit transaction”.

My guess is that is what happened.

BTW: I have bank app on my phone that alerts every time the debit card us used.

Good safety feature,

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So far, the only non-PIN purchase I’ve made is at Kaiser Medical. There are probably more.

Im sure Card Not Present transactions don’t require the PIN…like when you order online.

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A number of years ago, I attempted to make 2 semi-large value purchases on a BA credit card a few minutes apart. I guess it triggered an alarm for the BA folks as they put a hold on the second purchase until I confirmed, by phone I think, that both were legit and made by me.

Mentioned this before. I drove from the Cal Bay Area to Seattle and tried to get a motel room. My card was denied and I had to call B/A.

Their system did not show airfare, gas, meals or any purchases that day during my ‘trip’

Their computer did not consider that I might drive and use gas CC’s.

Had the same issue with both BOA and also Citi bank. Made 2 or 3 purchases within a short period of time[purchases were on the small side]. Like you said, triggers some kind of alarm.

Before any longer trip, go into your CC account and set up a “Travel alert”. You tell it what states or countries you will be traveling through. Works for me.

Exactly my experience with Discover Card - I bought something much larger than customary spending and they called me to confirm it. Two separate occasions I had my card compromised-once by loss, once by theft. One call got a reissued card with new number each time and no liability for interim charges. They have been very much on the ball.

I prefer credit cards as rates there are much lower. I recently switched to direct express card service that I found here and I’m pretty satisfied with its work and terms.

Years ago, my bank issued me a debit card, which I didn’t want, because it’s not secured with a PIN. They insisted it was. I walked to a Hallmark store and made a purchase with the debit card – no PIN needed.
I asked for and received an ATM card.

I also prefer to keep my purchases separated on a credit card, and other payments on my bank account. That’s just me and how I organize things!

plus most of my credit cards have alerts I can put for purchases, etc., which is really helpful.

Using Your Debit Card

Read Clark’s article today about the dangers of using a debit card and he suggested if you must use a debit card get a second checking account and not use your main checking for debit purchases. My question is, should the second checking account be with another bank entirely?

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I believe Clark has often said that it should be at a different bank/CU because they could transfer money from another account if one account is overdrawn. I asked my CU about this and there was a setting that could be changed to not allow automatic transfers from one account to another in the case of insufficient funds. With that in place, I could probably have another checking account with a debit card and be pretty safe. But, this seems too complicated and I just don’t use the debit card anymore except for ATM withdrawals. I also got rid of ACH for paying utilities and such as none of mine charge a fee for using a CC. I do use ACH to pay the CC off every month.