Because a debit card transaction is processed so fast, is it possible to order a “stop payment” or obtain a refund if I later discover a problem with the merchandise?
It depends. Because funds are deducted from your account very quickly, don’t expect to have the option to stop payment or obtain a refund. If the transaction cannot be cancelled, you may be able to work out other arrangements with the store. For example, if you return an item to a merchant and you’re not able to get a refund, you instead may qualify for store credit or a gift card. “If you’re concerned that the merchant might not deliver what is promised, you might consider using a credit card instead of a debit card,” says Janet Kincaid, FDIC Senior Consumer Affairs Officer. “That’s because the consumer protections are stronger for credit cards when it comes to returning damaged merchandise.” She noted, for example, that the Fair Credit Billing Act, which applies to credit cards but not debit cards, gives you the ability, under certain circumstances, to withhold payment on defective goods until the problem has been corrected.
