If your card information is used fraudulently, you might be protected under federal law, but getting that money back into your bank account is a painful and slow process. If your debit card information is illegally obtained and you report the fraudulent debits within 60 days of receiving your bank statement that included them, you are not liable for the transactions.
However, if your debit card is lost or stolen, you must act more quickly to ensure you aren't on the hook for any fraudulent transactions:. If your information was stolen but you always had possession of your card, you are not liable for any unauthorized use. To reduce the likelihood of problems, follow these basic security rules.
If you're using a prepaid debit card as opposed to one that came with your checking account , you might have less protection—so be sure to research your card's policies before using it online. Thieves can steal your card information from brick-and-mortar stores, ATMs, gas pumps, or just about anywhere Wi-Fi is available.
If your card isn't working, it could be for a few different reasons. You might not have activated the card, it could be expired, you could have entered the information incorrectly, or it may have been frozen due to suspected fraud. You also might not have sufficient funds in your bank account to cover the transaction.
There won't be any difference in how you enter a debit card or credit card online, and either one will usually work for online purchases. Although you won't have to enter your PIN or specifically select "debit" online, the money will still be withdrawn directly from your bank account. Huntington National Bank. American Express. Chase for Business. Consumer Financial Protection Bureau. Federal Trade Commission.
Cybersecurity and Infrastructure Security Agency. McClain Bank. Actively scan device characteristics for identification. Use precise geolocation data. Although credit cards are a safer bet for spending online, it's possible that you do not have access to one.
In this case, there are still ways to protect yourself from fraud. Maintaining a low balance in the account linked to the debit card you use for online purchases can help limit the size of fraudulent withdrawals — should they occur. This won't necessarily prevent someone from accessing your account, but it may limit the damage done.
You may also want to disable any form of overdraft protection should you have it on the account used for purchases. Many banks offer this service usually on a secondary account , which automatically withdraws from a savings account should the secondary account be overdrawn. In the case of fraud, this essentially means the crook has access to two accounts instead of one. If you do have overdraft protection in place, be sure to consult your bank on how and when it applies.
Another way to limit your liability is to use a prepaid debit card. If someone does gain access to the account, they'll have access only to what you have loaded onto the card. From a legal perspective, credit cards generally provide more protection against fraudulent activity. But, there are ways to mimic some of these protections with a debit or prepaid card.
Deciding which is best for you will help protect your money whether you're spending online or swiping in store. You can manage them any time by clicking on the notification icon. This section is about Living in UAE and essential information you cannot live without.
By clicking below to sign up, you're agreeing to our Terms of Use and Privacy Policy. Your Money. Budget Living. Browse articles by category. Back to page. Image Credit: Shutterstock Also in this package Is your pay falling short every month? Here are 12 ways to earn some quick extra money in the UAE I want to remit more money at lesser cost: Should I send money via an exchange house or my bank? When will it drop next to affordable levels?
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Here is a list of our partners and here's how we make money. If you typically use a debit card for online purchases, you may want to reconsider. If your card information is hacked and purchases are made without your permission, you'll quickly find out that debit and credit cards are treated quite differently.
The key difference: With a credit card, the card issuer must fight to get its money back. With a debit card, you must fight to get your money back.
If card information has been stolen and potentially fraudulent transactions have been made, two laws protect your rights. 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. 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.
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.
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