Credit Card fraud vent - Update pg 5 #61

[Maridw]

Today I went to use my debit/credit card and it was denied. Thankfully I had cash to pay for my purchases. I called my DH to have him check our account online and found that there were 3 charges for over $1100 that put our account into the negative.

Two of the charges were to ship something using DHL International and UPS UK. They might have been able to put a hold on one of the charges, but they still got over $600 authorized. I would like to know what they shipped for the amounts that they used. The DHL was for over $600 and the UPS UK was for over $500.

My DH is filing the Fraudulent Credit/Debit Card Use Report with our bank tomorrow and will be contacting the police about it. But in the mean time, we had to cancel our credit/debit card and wait to get a new one. This is the only card that we use, we got rid of the rest of our credit cards. So now we have to wait to see how the bank will handle the two charges that got authorized.

This is so frustrating. In January we got a notice from our bank that their system had been compromised and so they issued new cards. We have barely had the new cards two months and now this happens.

Thanks for letting me vent.

 

[jlewisinsyr]

The worst card you can carry in your wallet is a debit card, it offers limited protections unlike a credit card and your limits of liability is much higher on a debit card versus a credit card.

 

[BellePrincessBelle]

The worst card you can carry in your wallet is a debit card, it offers limited protections unlike a credit card and your limits of liability is much higher on a debit card versus a credit card.

Actually I have $0 liability on my debit card. I should know I got hit a few years ago. The money was back in my account in 3 days.

 

[Lisa loves Pooh]

The worst card you can carry in your wallet is a debit card, it offers limited protections unlike a credit card and your limits of liability is much higher on a debit card versus a credit card.

That's not true, but thanks for posting.

They have the exact same coverage as a credit card when used as a credit card.

Their policy applies to credit AND debit cards used as credit. ( a stolen debit used as a debit means that someone gave them their pin code and thus implied authorization)

http://usa.visa.com/personal/security/visa_security_program/zero_liability.html#anchor_4

The protections aren't limited to any dollar amount.


OP--unrelated to fraud, I keep a separate account for spending. Mostly so I don't accidently take too much out and then the account is short for the mortgage payment. I only transfer funds as needed.

Some people opt to do that as an extra layer of protection in case of fraud.

But it is the card I use for everything form airplane tix, to hotel, to grocery shopping and gas.

And never had a problem.

 

[Mickey's Minion]

The worst card you can carry in your wallet is a debit card, it offers limited protections unlike a credit card and your limits of liability is much higher on a debit card versus a credit card.

The only card we use is our debit card. However, it is a Visa branded card, so as long as we never specify debit and key in a pin code if asked, we are afforded all the protections of any Visa card.

And yes, we have had to test it out. We had a fraudulent charge and our bank had our money back in our account within 2 hours.

 

[Lisa loves Pooh]

Actually I have $0 liability on my debit card. I should know I got hit a few years ago. The money was back in my account in 3 days.

If people want to use credit, that's fine.

I don't understand why they lie about the liability policy on credit/debit cards though. The policy is the same as their plastic--the only difference is that cash was involved.

 

[jlewisinsyr]

That's not true, but thanks for posting.

They have the exact same coverage as a credit card when used as a credit card.

Their policy applies to credit AND debit cards used as credit. ( a stolen debit used as a debit means that someone gave them their pin code and thus implied authorization)

http://usa.visa.com/personal/security/visa_security_program/zero_liability.html#anchor_4

The protections aren't limited to any dollar amount.

Actually what I did post is true, a DEBIT card (not a co-branded card) is not covered under the same limit's to liability as a co-branded debit card. The Federal Trade Commission states that a person can be liable for up to $500 of fraudulent debit card charges while the maximum for credit card charges is $50 (banks can choose to reduce or eliminate liabilities, but they do not have to). PINS can be obtained many ways, from hacked ATMs and PIN Terminals or stolen wallets, so do not assume all PIN transactions carry some sort of valid or implied authorization.

That said, I didn't catch that she had written debit/credit, which would imply a co-brand card. Credit cards still offer more protections (even outside of fraud), like travel protections, extended warranty protections, damage protections, etc, these usually (there are a few exceptions) do not carry over to debit cards. For some reason many people like to paint credit cards with this big negative brush when it's not the credit card that is the problem, it's overspending that is. A credit card (or charge card) can be great tools in your financial tool kit.

Another negative about using a cobranded debit card is that you are leaving yourself at risk until the fraud is investigated (sometimes things will be resolved immediately, other times it could take days to weeks for research to be finished). With a credit card, the risk is contained, with a debit card, you're out the money until it's resolved (again in most cases).

 

[Lisa loves Pooh]

Actually what I did post is true, a DEBIT card (not a co-branded card) is not covered under the same limit's to liability as a co-branded debit card. The Federal Trade Commission states that a person can be liable for up to $500 of fraudulent debit card charges while the maximum for credit card charges is $50 (banks can choose to reduce or eliminate liabilities, but they do not have to). PINS can be obtained many ways, from hacked ATMs and PIN Terminals or stolen wallets, so do not assume all PIN transactions carry some sort of valid or implied authorization.

That said, I didn't catch that she had written debit/credit, which would imply a co-brand card. Credit cards still offer more protections (even outside of fraud), like travel protections, extended warranty protections, damage protections, etc, these usually (there are a few exceptions) do not carry over to debit cards. For some reason many people like to paint credit cards with this big negative brush when it's not the credit card that is the problem, it's overspending that is. A credit card (or charge card) can be great tools in your financial tool kit.

Another negative about using a cobranded debit card is that you are leaving yourself at risk until the fraud is investigated (sometimes things will be resolved immediately, other times it could take days to weeks for research to be finished). With a credit card, the risk is contained, with a debit card, you're out the money until it's resolved (again in most cases).

You can quote whatever you want, but VISA (and MC) maintain an identical policy.

I'm not painting CC's with a big brush--but please stop glorifying them as something fabulous and safer than a debit card.

Visa (and MC) REQUIRE instititutions utilizing their logo to follow thier posted rules--bit it a credit card or a debit card.

FTC has minimum requirements, VISA and MC exceed them. Until which time that they change their policy--claiming they are different is a falsehood.

And no--you are not out of money until it is resolved. But again--thank you for playing.

When a debit/credit is used fraudulently (or not-fraudulently), the bank automatically knows how it was ran.

These were credit charges--and thus is no different than a credit card branded under Visa or Mastercard.

Note--FWIW, at anytime they can change yoru magical credit card policies as well.

No need to demonize debit cards.

 

[Luvchefmic]

You can quote whatever you want, but VISA (and MC) maintain an identical policy.

I'm not painting CC's with a big brush--but please stop glorifying them as something fabulous and safer than a debit card.

Visa (and MC) REQUIRE instititutions utilizing their logo to follow thier posted rules--bit it a credit card or a debit card.

FTC has minimum requirements, VISA and MC exceed them. Until which time that they change their policy--claiming they are different is a falsehood.

And no--you are not out of money until it is resolved. But again--thank you for playing.

When a debit/credit is used fraudulently (or not-fraudulently), the bank automatically knows how it was ran.

These were credit charges--and thus is no different than a credit card branded under Visa or Mastercard.

Note--FWIW, at anytime they can change yoru magical credit card policies as well.

No need to demonize debit cards.

You are absolutely right Lisa, I have a Sun Trust bank debit card w/Visa logo I never choose debit run it as credit and have the same protection if it were a credit card

 

[jlewisinsyr]

You can quote whatever you want, but VISA (and MC) maintain an identical policy.

I'm not painting CC's with a big brush--but please stop glorifying them as something fabulous and safer than a debit card.

Visa (and MC) REQUIRE instititutions utilizing their logo to follow thier posted rules--bit it a credit card or a debit card.

FTC has minimum requirements, VISA and MC exceed them. Until which time that they change their policy--claiming they are different is a falsehood.

And no--you are not out of money until it is resolved. But again--thank you for playing.

When a debit/credit is used fraudulently (or not-fraudulently), the bank automatically knows how it was ran.

These were credit charges--and thus is no different than a credit card branded under Visa or Mastercard.

Note--FWIW, at anytime they can change yoru magical credit card policies as well.

No need to demonize debit cards.

ONCE AGAIN to I reiterate, DEBIT cards, not co-branded are not covered by the same rules as credit cards. PLAIN AND SIMPLE! I made it clear I did not notice the OP indicated "debit/credit" in their post, implying a co-brand, which again I AGREE carry some of the same fraud protections. I do not think I CLAIMED anything different, please READ before you jump down someone's throat!

ALSO, to reiterate, fraud protections are guaranteed to carry over from Credit Card to Co-Branded Debit, but other coverages DO NOT necessarily carry over, like extended warranty protections, etc, so in that case, CREDIT CARDS can offer features and protections that ARE NOT covered by co-branded DEBIT cards.

To answer your FWIW, rules can be changed on co-branded debit cards just as much as on credit cards (well in line with the new CARD act - which limits changes). Banks have been raising fees, adding fees, etc to both types of cards, and will probably continue to do so. So in contrast, NO NEED TO DEMONIZE CREDIT CARDS!

 

[Momvic5]

Same thing happened to me today...My kids and I were planning on going to the movies and when I went to pay for our tickets with my debit card, my card was denied. I then went to an ATM machine, and it denied my card saying that it was reported as stolen/lost. I called my bank immediately and was told that they put a fraud warning on my card due to a "red flag" transaction. The transaction total was over $800 and was purchased after 9pm. The transaction was denied, and my card was immediately cancelled. I am both thankful and amazed that my bank caught it before any of our money was lost/stolen.

 

[AshleyW]

Two of the charges were to ship something using DHL International and UPS UK. They might have been able to put a hold on one of the charges, but they still got over $600 authorized. I would like to know what they shipped for the amounts that they used. The DHL was for over $600 and the UPS UK was for over $500.

Sorry this happened to you! I can't tell you much about the card aspect of your situation, BUT I can tell you what most likely happened with the shipping company charges.

What these people do is buy a TON of overnight shipping labels from places like UPS or DHL with [your] stolen credit card. Their scam is simple: they contact someone selling something (puppies, auto parts, computers, whatever) via classifieds or Craigslist and offer to buy whatever the person is selling. They tell the person 'give me your name and address and I'll create a pre-paid shipping label for you', blah blah blah. You ship the item to them using their label, and while it's in transit or being delivered, they file a dispute with Paypal or whoever they paid with saying that it was an unauthorized charge. So really, the scammer doesn't have to pay for anything - they have the shipping labels they got with a stolen credit card, the item they "bought" - that they can now resell for profit, and they get their money refunded back to them. Easy peasy.

 

[Lisa loves Pooh]

. So in contrast, NO NEED TO DEMONIZE CREDIT CARDS!

Actually, I never did.

 

[jlewisinsyr]

Actually, I never did.

Note--FWIW, at anytime they can change yoru magical credit card policies as well.

 

[merryweather20]

You can quote whatever you want, but VISA (and MC) maintain an identical policy.

I'm not painting CC's with a big brush--but please stop glorifying them as something fabulous and safer than a debit card.

Visa (and MC) REQUIRE instititutions utilizing their logo to follow thier posted rules--bit it a credit card or a debit card.

FTC has minimum requirements, VISA and MC exceed them. Until which time that they change their policy--claiming they are different is a falsehood.

And no--you are not out of money until it is resolved. But again--thank you for playing.

When a debit/credit is used fraudulently (or not-fraudulently), the bank automatically knows how it was ran.

These were credit charges--and thus is no different than a credit card branded under Visa or Mastercard.

Note--FWIW, at anytime they can change yoru magical credit card policies as well.

No need to demonize debit cards.

Funny I notice everyone on this page saying and "the bank put my money back in x number of days". You can rant all you want about credit cards, but with a credit card, YOUR money is never gone, not even for "just 2 days". You simply call and let them know to take the charge of the bill. Its the difference between panicing and squirming, trying to transfer cash from another account, and not lifting a finger.

 

[Lisa loves Pooh]

Funny I notice everyone on this page saying and "the bank put my money back in x number of days". You can rant all you want about credit cards, but with a credit card, YOUR money is never gone, not even for "just 2 days". You simply call and let them know to take the charge of the bill. Its the difference between panicing and squirming, trying to transfer cash from another account, and not lifting a finger.

Your credit line can be gone for several days--FTC doesn't say that it has to be restored instantly.

To some--they would panic and squirm when they don't have access to plastic and they need to by gas or groceries.

To insinuate otherwise is dishonest.

And yes, we still have credit cards. I just don't feel the need to go and shame someone with falsehoods when their co-branded debit card got hacked.

 

[jlewisinsyr]

And yes, we still have credit cards. I just don't feel the need to go and shame someone with falsehoods when their co-branded debit card got hacked.

Who shamed someone with falsehoods?

 

[Lisa loves Pooh]

They can change thier policy anytime.

Please explain how that demonizes credit cards?

 

[Lisa loves Pooh]

Who shamed someone with falsehoods?

You did--in your first post.

It seems anytime someone has a bank card issue--someone has to chime in on how horrible debit cards are and how credit cards are better for protection against fraud.

It isn't true.

 

[jlewisinsyr]

They can change thier policy anytime.

Please explain how that demonizes credit cards?

Because it's pointing it towards credit cards, when banks/debit/co-branded are just as apt and able to change policies, fees, etc. Actually the CARD act has benefited users of Credit Cards from preventing some of the drastic changes you reference, while it leaves banks (financial institutions) open to review other types of accounts, like bank accounts with debit cards (even co-branded attached). Banks are looking to recoup possible revenue losses and will look to add fees to credit cards (like annual fees) and more importantly to some of the lower regulated accounts like debit cards and in general bank accounts.