Debit card fraud....

[bleucamaro]

I think the risk of fraud occurring to either a debit card or credit card is the same. My preference is for the bank's money to be stolen, instead of mine. I prefer a credit card because it's my opinion that the bank will work harder to get their money back than to get money removed from my account returned.

I've had credit cards cloned multiple times, and each time the bank was very quick to get the fraudulent charges reversed. A single phone call is all it takes. New card in my hand the next day. If the same happened with a debit card, I don't know how long it would have taken to be resolved.

[KFC911]

Originally Posted by bleucamaro

I think the risk of fraud occurring to either a debit card or credit card is the same. My preference is for the bank's money to be stolen, instead of mine. I prefer a credit card because it's my opinion that the bank will work harder to get their money back than to get money removed from my account returned.

I've had credit cards cloned multiple times, and each time the bank was very quick to get the fraudulent charges reversed. A single phone call is all it takes. New card in my hand the next day. If the same happened with a debit card, I don't know how long it would have taken to be resolved.

As has been posted, the fraud detection is actually quite good with either these days. My debit has been compromised twice, money has never left my account however. Ten years ago, I was automatically sent a new card. Two years ago, I recieved an automated voice mail on a Monday, for two $600 (purchases?) that occurred in San Francisco over the weekend...asking if they were aurhorized...I replyed No. Now I don't know if the purchases were rejected, or not, but my account never saw the charges. It's quite possible that Visa just "ate" the loss...I truly don't know. The card industry is such a "cash cow", profit generator, that the last thing they want is for folks to be afraid of using either, but they sure try to steer folks into using CCs, where their margins are much higher. A lot of folks think they make money off of interest (when balances aren't paid in full), and they do, but the % they skim off of every purchase is really the golden goose....consumers pay for that. Do whatever you feel comfortable with however...I do

[stomachmonkey]

Originally Posted by bleucamaro

.....If the same happened with a debit card, I don't know how long it would have taken to be resolved.

OP asked had anyone actually lost any money due to debit card fraud.

The answer is going to be largely no as Federal Law limits consumer losses to $50.00 if the fraud is reported in 2 days and up to $500.00 within 3-60 days.

After 60 days however you are SOL.

But the topic was limited to fraud from compromised cards.

That's not the entire story.

A debit card is cash, your cash.

A credit card comes with a slew of additional protections for consumers and yes, you pay for it in the form of interest and / or fees.

If you make a purchase with a credit card and never receive the item, or don't receive what was promised you file a complaint with your card issuer and they will work to resolve it for you.

Not the case with debit cards.

It helps to understand the different terms.

Fraud: unauthorized access to a payment instrument.

Error: simple human error, accidental overcharge, double charge, non-malicious and / or unintentional charge.

Dispute: disagreement over payment of goods and / or services, non-performance of a promise to deliver.

Credit cards have protection for all three.

Debit cards have protection (conditional) for the first and under certain circumstances the second but not guaranteed, the third, you are entirely on your own.

Use the correct instrument according to the circumstances.

My general rule, use a credit card freely (and try to pay it off every month), use a debit card sparingly.

Good use for debit cards are perishables, consumables, groceries, gas (only if you pay inside or at the pump)

Credit cards are preferred for high ticket items where mitigating your loss should the product turn out to be a turd is desired or when you are not walking out with the product in hand.

[KFC911]

Originally Posted by stomachmonkey

....

A credit card comes with a slew of additional protections for consumers and yes, you pay for it in the form of interest and / or fees.

If you make a purchase with a credit card and never receive the item, or don't receive what was promised you file a complaint with your card issuer and they will work to resolve it for you.

......

Credit cards are preferred for high ticket items where mitigating your loss should the product turn out to be a turd is desired or when you are not walking out with the product in hand.

I had, and used my Visa credit (through my credit union) for 13 years for big ticket items and such, just for the protections, etc. that you describe, but still used my debit most of the time. Never had to dispute charges, and neither was ever compromised in any fashion. I made all Internet purchases and big ticket items via credit. Then about a dozen years ago, came home from work, and had a letter from the CC "service provider" (not my CU, can't remember the four initials, same service provider on the debit....but I digress), informing me that those protections for fraud, etc. would no longer be applicable for Internet purchases, nor apply outside of 75 miles from my CC home mailing address....wtf ? Took me less than 30 seconds to pick up the phone, and probably 20-30 minutes to cancel the CC....they don't make it easy through their automated system.

I never bothered to get another one....

But those protections (if applicable), are a really good reason to use a CC as you state. Just make sure they haven't been eliminated in the "fine print" imo.