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Nowadays more and more banks offer the facility of credit cards or check cards. Generally issued by MasterCard or Visa, these cards resemble credit cards both in appearance and usage. However there are two major differences. The first is the more obvious one of the money for debit card purchases being taken straight out of your checking account. Thus you are not in debt like you are with credit cards. The second difference is a lot less obvious but also a lot more dangerous.
Credit card fraud is increasingly becoming a prime concern with fraudulent users of credit cards having affected thousands of Americans. According to the Secret Service, credit card fraud losses are estimated at over a billion dollars every year and in 1996, almost 2,500 credit card criminals were apprehended. Unfortunately it is also equally simple for criminals to manipulate a Visa or MasterCard debit card for fraud. As far as the criminal is concerned, there is hardly any difference between a debit card and a credit card.
The main difference in debit card fraud is that the stolen money is taken out of your account rather than that of a bank or credit card company. Thus you could even be liable for overdraft charges by your bank if the amount stolen by the criminal exceeds the amount in the account. In case you have outstanding checks, they may be returned by the bank with another overdraft charge. If your outstanding checks add up to a lot, you may be charged more in fees by your bank than the amount actually stolen by the criminal.
Another thing about debit cards is that they do not offer the same extent of legal protection as credit cards do. Your liability as a credit card user for fraud is limited to $50 as per federal law. You also enjoy the right to dispute charges as well as the right to withhold payment temporarily in case of fraudulent charges. These laws are however not applicable to debit cards. A few banks may offer fraud protection for your debit card about which you should make sure you inquire.
The moment you have reason to suspect fraud on your debit card, waste no time in reporting the matter to the police. Next, notify the bank and ask for your debit card to be cancelled and a new one issued to you, with a different number. Federal Trade Commission can also be informed about the theft.
Check your bank balance to look for any possible shortfall. If there are checks in imminent danger of bouncing, try and put cash into the account in order to avoid possible additional overdraft fees. If you are unable to get the necessary cash to make up for the entire deficit, notify your creditors of the credit card or debit card fraud and request them for patience while you get the situation under control. In case your bank happens to charge any fees due to debit card fraud, you should immediately challenge the move. If your bank refuses to budge on giving you the fee refund or on refunding the fraudulent charges, approach your Senator or Congressman and request him to make an inquiry with the Treasury Department.
The best way to protect yourself from card fraud is to always be aware of where your cards are and keep them safe. If your debit card has a Personal Identification Number or PIN, keep it a secret. Don’t choose a number based on your personal details like date of birth, address, phone number or Social Security number and memorize the number. Read on for some handy tips in adding to the protection of your credit card and debit card accounts.
Never carry your PIN number with you whether in your wallet or purse now write it on your ATM or debit card.
Never use a deposit slip, envelope or any other paper that can be easily misplaced or seen to write you’re PIN.
Check all transactions on your ATM or debit card carefully and only then should you enter the PIN or sign the receipt. The funds for the purchase being made won’t take much time for transferring out of your checking account.
Make sure you make periodical checks on your transactional details, more so if you happen to bank online.
Never forget that debit card fraud differs from a credit card fraud in the fact that it’s your money that is being swindled. It’s up to you to take timely action to protect your bank balance.
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