Debit card - any protection?

Gerhardt

Gerhardt

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Gerhardt
I know we have some experts here so I'm looking for advice. I called my bank, but the kid there was little more than a blank stare.

We're heading to The Bahamas tomorrow and taking enough cash to pay for everything, but may encounter a situation (like the hotel) that will require a card. I haven't owned a credit card in years, but recall a situation some time back when we were in Cancun and somehow our credit card was used to rack up several thousand. The bank ate the fraudlent charges, but unless I'm mistaken, the same is not true of debit card transactions.

When the kid at the bank was no help I withdrew everything except $2500, an amount that wouldn't wipe us out if it was stolen.

But I'm still curious if there's a better way or something else I could do to protect us from fraudulent transactions while we're on vacation.
 
Travelers checks? LOL I don't even know if they're still around. Credit card as you mentioned has protection.I believe CCs also get you the best exchange rate.

edit removed wrong info
 
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Gerhardt said:
I know we have some experts here so I'm looking for advice. I called my bank, but the kid there was little more than a blank stare.

We're heading to The Bahamas tomorrow and taking enough cash to pay for everything, but may encounter a situation (like the hotel) that will require a card. I haven't owned a credit card in years, but recall a situation some time back when we were in Cancun and somehow our credit card was used to rack up several thousand. The bank ate the fraudlent charges, but unless I'm mistaken, the same is not true of debit card transactions.

When the kid at the bank was no help I withdrew everything except $2500, an amount that wouldn't wipe us out if it was stolen.

But I'm still curious if there's a better way or something else I could do to protect us from fraudulent transactions while we're on vacation.
Click to expand...

In my previous life I worked for a bank, and dealt with this often. The short answer is you still have fraud protection. When/if you call to file a claim about fraudulent charges, they'll ask you a series of questions that are a bit different from the ones you've heard regarding credit cards. Mainly, the different questions will be regarding your PIN. Have you given your PIN out to anyone (your wife? kids? neighborhood crackhead)? Do you have your PIN written down somewhere (on a post-it note in your wallet right next to your debit card)? Basically questions like that. Without me having to tell you much more, I'm pretty sure you can figure out the CORRECT answers to any such questions that may come up.

But like I said, short answer is that you're still covered. However, being that its a debit card and not a credit card, crediting your account might take a bit more time. They're not just canceling charges that you don't have to pay back...they're actually giving you money back. See the difference? Also, I know that with the stagecoach bank, they mailed out affidavits that needed to be signed before any credit was issued.

Hope that helps.
 
Also, i'll add that if you go the route of taking all the money out of your checking account and moving it into, lets say, a savings account in the same bank, make sure that savings account isn't linked up as an Overdraft Protection source for the checking account....
 
If you're CREDIT card adverse, I can understand....

But for the purpose of the trip, if there is time, consider applying for and obtaining one. As folks said, the exchange rate can be favorable, and it affords you a little bit better protection. And you won't run into any merchants who cannot process the debit card for some reason.

Then when you return home from the trip, Pay the card off as fast as possible (all at once hopefully), and cancel the card. If you do this fairly quickly after your return, then it reduces the problems of someone at your destination trying to use the number after you have left.

If you do decide to take your debit card, be sure to advise the security department at your bank that you're travelling overseas. And double check your daily limit and individual transaction limit, modify as needed. All three of these might help in preventing an embarrassing moment when the bank's auto security shuts the door on you. That's happened to me on a trip.


Traveler's checks are still done. Just uncommon.


And I wonder if opening up a totally new and separate account for the trip purposes is worth while. Sorta "firewall" from your main accounts, and if the card was stolen, there is a smaller amount for them to steal.
 
I understand the laws have changed on how protection is handled on debit cards, and now debit cards are afforded the same protection as credit cards for fraudulent charges.

That wasn't always the case. I had my wallet stolen years ago, and credit card was used to buy stuff. And so was my debit card, which could also be used like a credit card. I was reimbursed for the charges on the credit card but not on the debit card. Tinkled me off.
 
Had my info stolen last year... thieves spent thousands of dollars overnight on a trip. The bank absorbed the loss and I got my money back.
 
You don't need to answer this question, but is there a reason you don't have a credit card? I understand the desire to do as much as possible in cash, and I also understand that some people have issues that they will max out credit cards if they have one available.

That said, provided you use it correctly, a credit card is a great tool. Earlier this month, we had a dispute with the gym my wife had been going to. They had been bought out by another gym, closed her location, and refused to cancel her membership immediately. So, I went and disputed all the charges. The cases were closed within 24 hours in my favor. I've never had my credit card deny a claim.
 
Cajun_Flyer said:
Had my info stolen last year... thieves spent thousands of dollars overnight on a trip. The bank absorbed the loss and I got my money back.
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You sure it wasn't eman and hooker charges?
 
If your card has a chip on it it has you covered. Otherwise you can run your debit card as a credit card and sign the transaction as opposed to using a pin.
 
mscard88 said:
You sure it wasn't eman and hooker charges?
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If that was the actual case, the response should have been, "The bank absorbed the loss and I got my monkey back"
 
Ted DuPuis said:
That said, provided you use it correctly, a credit card is a great tool.
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Agree, especially if you have a rewards card of some type. Just treat your purchases just as you would with cash such that you pay it off each month. I sometimes delay expensive purchases and charge them on the 1st day of the billing period, let the CC company float me the money for a month.
 
Bill Jennings said:
Agree, especially if you have a rewards card of some type. Just treat your purchases just as you would with cash such that you pay it off each month. I sometimes delay expensive purchases and charge them on the 1st day of the billing period, let the CC company float me the money for a month.
Click to expand...

Yep, I do that too. My credit card is 0% interest since I pay it off every month.

A good points program is also a big plus. Of course, everyone's different in how they arrange their finances.
 
My bank told me to use the debit card as if it was a credit card at all POS terminals, Visa offer more protection it's the transaction is credit

Also if you travel overseas, particular Europe, you can request the transaction to be run as US dollars as opposed to local currency, this avoids those foreign transaction fees.
 
Thanks for the information. I really appreciate that.
 
From what I have read, very few swipe terminals exist in Europe. They have converted to chip readers. So if anyone is travelling over there and their current bit of rectangular plastic is chipless (like mine), you'll need to get one with a chip before you go.
 
Gerhardt said:
I know we have some experts here so I'm looking for advice. I called my bank, but the kid there was little more than a blank stare.

We're heading to The Bahamas tomorrow and taking enough cash to pay for everything, but may encounter a situation (like the hotel) that will require a card. I haven't owned a credit card in years, but recall a situation some time back when we were in Cancun and somehow our credit card was used to rack up several thousand. The bank ate the fraudlent charges, but unless I'm mistaken, the same is not true of debit card transactions.

When the kid at the bank was no help I withdrew everything except $2500, an amount that wouldn't wipe us out if it was stolen.

But I'm still curious if there's a better way or something else I could do to protect us from fraudulent transactions while we're on vacation.
Click to expand...

Take a prepaid visa gift card and put the required amount on it.. $250..300.. whatever the contingency amount is that the hotel requires as a deposit.. and that is that.
 
Scrabo said:
My bank told me to use the debit card as if it was a credit card at all POS terminals, Visa offer more protection it's the transaction is credit

Also if you travel overseas, particular Europe, you can request the transaction to be run as US dollars as opposed to local currency, this avoids those foreign transaction fees.
Click to expand...

Actually the best deal is to charge in the local currency with a zero foreign transaction fee card. All of my cards have this feature. This avoids any extra fee and also gets you the best exchange rate as it's the bank to bank rate. If you let the merchant charge in Dollars, they charge a pretty good ripoff exchange rate. The worst deal is a card with a foreign exchange fee and charging in dollars.

Cheers
 
AggieMike88 said:
From what I have read, very few swipe terminals exist in Europe. They have converted to chip readers. So if anyone is travelling over there and their current bit of rectangular plastic is chipless (like mine), you'll need to get one with a chip before you go.
Click to expand...

Never had a problem with a swipe as all the terminals I've encountered in Europe and elsewhere like Mexico had both a chip reader and a swipe slot. All my cards now have a chip but the backward banks in the USA usually require a less secure signature instead of a PIN. The terminal just spits out a paper receipt for you to sign if you have a USA Card.

Cheers
 
I use CC for almost everything and pay it off every month. Haven't paid one cent in interest in several years but I do get a few hundred dollars each year in cash rewards.
 
My credit union offered me a temporary credit until the fraud:
$1.50 on a soda machine
$67.00 at a restaurant
$965.00 (declined) at a clothing store

was paid. I said, "no thanks, just credit it back when the fraud review is done (guaranteed in two weeks)"

Questions asked:
Are these your charges? No
Have you been to San Antonio, TX in the last 2 weeks? No (this is where the soda machine, restaurant, and clothing store were)
Have you given your card number and PIN to anyone? No
Are there any other fraudulent charges on your account? No, not yet.

So, if you do get skimmed, your options may be more than other banks.

I got the credit back in 6 days.
 
If you're going to have some internet connection on your phone, PayPal debit card, links to your normal bank or debit card, the SECOND it's run you get a email, if it's fraud clink a link. Also it's standard pay pal type consumer advocacy, plus you get 1% cash back on everything.

Been using mine for a few years, been quite happy.
 
I travel to foreign countries a lot. I also try not to use credit cards (although I do carry one with me). What I do have is a second checking account set up at my bank and a debit card for that account. In that second "travel" checking account, I only have a couple of hundred dollars in there. That's the only card I take with me when I'm out on the town. All my other cards are locked in my hotel safe. I try to be cash only everywhere when I travel. I'll hit the ATM (check for skimmers), take out enough cash for my stay, and use that. When I run low in my travel checking account, I just transfer a couple hundred more dollars into it from my main checking account. I figure if that travel checking card gets compromised, the max they'll get is a few hundred USD, probably less.

As an aside, a few months ago, somehow, my wife's debit card got skimmed somewhere (we still don't know how or where) on payday. Someone took out thousands of dollars from ATMs in Florida. The crooks were even able to move money from my son's checking account and our overdraft checking account into our checking account to get even more. The bank didn't stop it until we called. They refunded all our money instantly, but left me questioning how secure their system is.
 
Bill Jennings said:
Agree, especially if you have a rewards card of some type. Just treat your purchases just as you would with cash such that you pay it off each month. I sometimes delay expensive purchases and charge them on the 1st day of the billing period, let the CC company float me the money for a month.
Click to expand...

I'll use a credit card for anything no matter how small as long is there isn't a penalty from the merchant for to small an amount. I have two that I use routinely and change every 15 days, using each in the first half of their billing period. Their billing cycles are 15 days apart. I'm always at about a minimum of 40 days from actually paying for anything.
 
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