Got a Debit Card? Maybe you should burn it.

[Chuck(G)]

The following story just underscores what I've always suspected about debit cards:

http://www.securityfocus.com/news/11381

Even if there's no security breach, you're still at risk. I recall that the bank handling our merchant card services got an intern to run the transaction log twice. We received several calls from angry customers asking why we double-charged them--and in one case, drained their account.

None of this was, obviously, our fault, but we took it on ourselves to make sure that the bank contacted each of our customers, explained the situation and repaired the damage.

Right then, I swore that I'd never have one the blasted things.

[Dan Schultz]

I have one and use it regularly. Used to... Wal-Mart (and others) would check your ID and have you poke a PIN into the system. Now... no one seems to give a s**t if it's really your card or not. I think I'm just going back to good old cash!

[windshieldbug]

Our bank uses only the blasted things for ATM cards... and in the article Chuck mentions, they ain't safe if you just use 'em there, either!

[Joe Baker]

As Jesus said, "Store not up for yourselves treasures on earth, where rust and moth corrupt, and thieves break in and steal, but rather store up treasures in heaven." That's the only way I know of to keep someone from stealing your treasure.

Checks are counterfeited everyday. Cash not only can be lost or stolen, but will burn if your house catches fire ("no, really Mr. Insurance Adjuster sir, I had $200,000 stuffed into my mattress").

I read your post a different way: somebody screwed up, it caused some people to stress out, the bank that screwed up fixed the damage, and (other than having been stressed out for a few days) everyone was made whole again. The system worked! Likewise, if someone gets hold of my debit card info and manages to clean out my (meager) checking account, I'm only liable for the first $50. The rest is the bank's problem.

With all that said, I will tell you that I've cut WAY back on using my debit card, prefering instead to use a credit card and send a payment each friday for whatever I charged that week. Credit cards are much better protection in the event of an unsatisfactory purchase. You can't challenge a debit charge the way you can a credit charge (mind you, I've challenged exactly 1 (one) credit charge, ever). Besides, I get some nifty perks for charges to the credit card, so as long as I pay it off before they can charge me any interest it's a "win" there, too!

One thing's sad but true: if you use ANY of these gadgets, you have to review charges frequently to keep from getting ripped off.
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Joe Baker, who takes full advantage of on-line bill payment, too... but that's another post.

[Chuck(G)]

I read your post a different way: somebody screwed up, it caused some people to stress out, the bank that screwed up fixed the damage, and (other than having been stressed out for a few days) everyone was made whole again. The system worked!.

In one case, the customer was purchasing groceries and the charge was declined at the register. The bank simply wanted to reverse the second charge, without covering overdraft or even admitting a mistake. I don't call that being made whole. We obtained the name of the bank supervisor, called each of our customers, gave them the name and phone number of the supervisor, and explained what had happened. This cost us time and money--so we certainly weren't made "whole". I suspect that we lost business anyway because some customers thought we were a bunch of crooks.

That was a few years ago--now, the bank would probably just blow us off and say that it was none of our business due to "security policies".

It got bad enough that a few merchants around here posted signs that they would not accept debit cards. The banks told them that if they wanted to take credit cards, they had to accept debit cards.

Banks love debit cards--there's no "float" that they have to absorb for 30 days--the money vanishes instantly from the customer's account--yet the merchant still has to pay the same transaction fee that would be paid for a credit card transaction. Instant profit!

[MikeMason]

i've got even worse news for you.even if you don't have a card of any kind,its very easy to create checks with a little info.so,take precautions,but don't live your life in fear, my take....

[Joe Baker]

(A)... lost business anyway because some customers thought we were a bunch of crooks.

(B)That was a few years ago--now, the bank would probably just blow us off and say that it was none of our business due to "security policies".
...
(C)Banks love debit cards--there's no "float" that they have to absorb for 30 days...

(A)The loss of business is a bummer, and I can understand how it could make a merchant hate them; but as a consumer it is no reason for me not to carry a debit card.

(B)Getting banks to make -- or even TAKE -- phone calls is next to impossible; but when we had a bank error recently that caused us to be wrongly overdrawn (the bank failed to credit a $1000+ cash deposit), they sent a letter to each person or business that had bounced a check (the letter did give a phone number, but I don't know if anyone actually called). It took the wife 30-minutes on the phone to find the right person, but then it was easy. The money was put back in our account immediately, all the checks came back through and cleared, and we never heard another word from anyone.

(C)Speaking of floats (and I understand your comments were regarding credit card floats), consumers don't get a float now on checks, either -- or at least they can't assume that they will. Merchants can scan a check, create an electronic "copy", transmit the electronic copy to the bank, and receive the funds from the customer's account faster than you can say "Thank you, come again." Old Navy was the first merchant I saw that actually did this; since that day I've made a point to assume that I have zero float time.
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Joe Baker, who keeps very little cash available by any kind of card, expects occasional problems, and loses no sleep over the possibility.

[windshieldbug]

Now that I've had time to think about it, maybe it ain't SO bad...

If they grab numbers from a less-than secure retailer... I'd rather have them empty my ready-cash bank acount, which has a LOT less in it, than max out my credit...