How are debit cards different from ATM or credit cards in the case of fraud?
An ATM card requires you to use a Personal Identification Number (PIN) to obtain cash or make a purchase. With a debit card someone could use your card as a “credit” card and avoid showing identification if the merchant fails to request they prove their identity. Federal law generally limits your liability to no more than $50 if your debit card is stolen or copied, as long as you report the crime within two days of receiving your statement. However, if you don’t notice the suspicious activity till weeks later, you may be liable for up to $500 or more. As is the case with any transaction disputes, you are not guaranteed to get your cash back. More importantly, if you are on a tight budget, the cash is removed from your account immediately and may cause other payments to be late or you could end up with overdraft fees. If you are going to use a debit card it will be important to check your bank statement each month (or better yet, every few days with online banking) to ensure that no fra
