Debit card fraud is worldwide and has become extremely prevalent in today’s society.
One of the main reasons for the increase in this scam is the plunge of the economy.
People have become desperate and because of this, any type of credit card or debit card theft is on the rise.
At this point there seems to be no end to this devastating crime.
Debit cards are a very popular way to pay for all your needs because they are so easy and quick.
You can use them to book a plane fare, rental car, restaurants and just about everything you can think of.
See how vulnerable you are by taking the scam check quiz.
Your debit card works like an electronic check and looks just like your credit card.
When you use the debit card your payment is immediately deducted from your savings or checking account.
When using your debit card a cashier will slide the card through a machine that scans the card and enables your bank to verify the funds are available; if so, your transaction will be approved.
Debit card purchases do not allow you to build credit, although using your debit card allows you to avoid making late payments, harming your credit, or running up huge bills.
Debit cards and credit cards do Not give you the same fraud protection.
Many institutions will waive this for their customer that has been defrauded.
You can also refuse to pay any or part of the unauthorized charges while the theft is being investigated.
Always check with your bank to become aware of their applicable state laws and policies.
Using debit cards makes it hard to track what you purchased if you don’t write it down or enter it in your checkbook immediately.
I always keep the receipts until I enter them in my checkbook and go online most every day to check what has come through and balance my checkbook.
It only takes a few extra minutes to do this, and can save you from thinking you have more than you do in your account resulting in overdrafts.
The bank makes more money in fees when you do this.
A bank could make $1.99 on a $200.00 transaction if the “credit” option is chosen and you sign your name.
This comes out to 3 times more than the 60 cents usually made from customers who choose “debit” and enter their PIN number.
Caution: As I stated above, it is harder to keep track of your balance unless your diligent, which is imperative, because there are no statutes or regulations that limit the amount of a pre-authorized hold or length of time that is imposed on an account.
A friend of mine bought 22 dollars of gas and the station put a hold of 75 dollars on her account.
This amounts to more than 3 times the amount of the purchase.
He contacted the bank and gas station and each said the other was to blame.
He even went directly to the manager to escalate his complaint, but it still took 72 hours before the hold was finally released.
The holds stay until the requesting merchant or the bank releases the amount held in excess of the purchase amount.
This can take as little as three days, sometimes longer.
You can avoid the problems of having the debit card and still have the convenience of the ATM card by asking the bank to issue a card for just the purpose, without the function of the debit
Debit card fraud happens in many different ways, from many
sources, and can cause numerous and huge problems. Be aware of what you
spend, be diligent in tracking your expenses, and most of all be careful
how many times you “swipe and buy”.