| Recently, the Federal Reserve reported that debit | | | | "chargeback" is initiated with your credit card company, |
| card transactions made by Americans has been | | | | you are, at most, liable for only $50 of the losses no |
| growing annually at a rate of more than 20 percent. | | | | matter how much the charge may have been. |
| The debit card transactions have even surpassed the | | | | When it comes to losing cash, you are pretty much |
| number of credit card transactions processed. Debit | | | | limited to the cash you have on hand. Although I can't |
| cards, being quick and easy to use, have their lure | | | | imagine the recourse through the police system, haha, |
| when looking through your pocketbook and making a | | | | or local posters for cash losses are substantial, at least |
| purchase. | | | | you only lost what you were carrying at the time. |
| Debit cards are becoming more and more appealing to | | | | Most people don't realize the potential risks to their |
| people as a reliable and easy way to pay for things all | | | | financial reputations were the debit cards to be |
| the way from computer equipment to a night out for | | | | compromised. And a large percentage of people keep |
| pizza. The appeal of this type of card is obvious. | | | | their savings account linked to their checking account, |
| What is it then that we are all missing about such a | | | | think of the extra loot for the identity thiefs... those |
| seemingly simple product? Why is it that we should | | | | lucky guys. And you, the perfect mark, walking around |
| NEVER EVEN CARRY AROUND OUR DEBIT | | | | unaware and happily whipping out the debit card for |
| CARD! | | | | purchases. |
| I'll tell you and also explain why using a debit card can | | | | Although the Truth and Lending Act helps to protect |
| potentially cost you hundreds and even thousands of | | | | us consumers, debit cards do not fall under their |
| dollars. PULSE EFT Association reported in 2007 in it's | | | | jurisdiction and instead are regulated by another |
| Debit Issuer Study that US Financial Institutions lost an | | | | organization altogether. The Electronic Fund Transfer |
| estimated $662 million to debit card fraud in 2005. And | | | | Act governs debit cards. |
| this is back in 2005. How much hype have you heard | | | | To keep the same protection and the limit of $50 for |
| about it lately in 2008. It doesn't look as though the | | | | liability, a debit card user has to notify the bank within |
| problem has exactly gone away. | | | | two business days of the charges. Any longer than |
| When carrying around a card that is linked to your | | | | two days and your financial liability jumps to $500 and |
| bank account, (WHERE YOU STORE ALL OF YOUR | | | | then if you wait more than 60 days from the date of |
| MONEY) you are essentially carrying around your | | | | loss, you could lose anything and everything that the |
| entire cash balance in your pocket. Although cash or | | | | thief took. |
| credit card seems more risky to some, there is | | | | Not everyone checks their account balances every |
| absolutely no reason to think this way. | | | | day and can you imagine losing money in such a silly |
| When losing a credit card, your financial liability when it | | | | petty way, simply because it was "easier" to use the |
| comes to fraudulent charges placed on your card is | | | | debit card. The easy way out is not always the |
| limited to $50 thanks to the Truth in Lending Act. That | | | | smartest one. Especially when it comes to identity |
| means that once the charges are reported and a | | | | protection and debit card theft. |