Got a Debit Card? Think it's like using a Credit Card? Think again.
Debit cards are being used more like credit cards to pay for goods so is there any difference in terms of fraud liability?
According to the Federal Trade Commission you are only liable for up to $50 on fraudulently charges on your credit card but for charges on your debit card it is a whole other story. Considering many debit cards are linked to savings or overdraft accounts the story can be even scarier.
If you report an ATM or debit card missing before someone uses it, the FTA says you are not responsible for any unauthorized transactions. If someone uses your debit card before you report it lost or stolen, your liability depends on how quickly you report it.
| If you report: | Your maximum loss: |
| Before any unauthorized charges are made. | $0 |
| Within 2 business days after you learn about the loss or theft. | $50 |
| More than 2 business days after you learn about the loss or theft, but less than 60 calendar days after your statement is sent to you, | $500 |
| More than 60 calendar days after your statement is sent to you. | All the money taken from your debit card account, and possibly more; for example, money in accounts linked to your debit account. |
However, if someone makes unauthorized transactions with your debit card number, but your actual card is not lost (only the number stolen) , you are not liable for those transactions if you report them within 60 days of your statement being sent to you.
All up it is much safer to use a Credit Card than a debit card, particularly online.
