Debit card questions...this whole Target thing has me freaked out!

[traces7]

I'm seriously considering getting rid of my debit card, because this whole thing with Target makes me nervous about using it. Luckily I haven't shopped at Target lately! I guess I'm mainly worried about someone getting the money from our account.

Right now our debit card is tied to our checking account. I do have limits on it $50 at ATM, $200 at point of sale. I just checked into that today. Still makes me nervous! I never use it at the ATM, so I considered putting that to 0. I only use it as credit at stores (grocery store, Walmart, etc) I never use it as debit with my PIN # (I don't even remember my PIN #) and never use it at gas stations or restaurants.

I'm still nervous about using it, should I be? What do you all do?
This week I got cash from the bank and plan on using that when I go grocery shopping tomorrow!

The lady at the bank gave me an idea to set up a separate checking acct and keep a small amount in it just for the debit card, I may do that too.

Any suggestions or advice? Thanks so much!

 

[supergoofy]

I don't use my debit card at all.

My credit card gives me perks that a debit card just cannot match.

Its not attached to a bank account so if there is fraud I don't have to wait months to get my money back.

Mine also has coverage for extended warranties

And if there is an error in charges I am also not out say the price was to be $7.89 but some how the charge got put in at $78.90

And if you have an issue with a business a credit card dispute is better leverage as you are not out any money. Say you are on your way to the World and you already paid for your bags to fly but the airlines says you didn't. And in the rush to the airport you forgot the paperwork to confirm this. With a credit card you can pay for your bags and then call your company and place a hold/dispute these charges while you work with the airlines on correcting the issue.

 

[djmeredith]

As long as you cancel the cards you used and replace them, you don't need to go to the extra trouble of opening a new account. Numerous credible sources such as NPR (and my own bank ) have reported that bank account numbers were NOT compromised because they are not tied to debit cards. I wasn't overly stressed about the situation even though my regular debit card and Target Red Debit card had both been used during the breach. In fact, when my bank said it couldn't rush me a new card, I decided to wait until after the holidays to replace my debit card. However, my bank identified all their customers who were affected and are automatically sending us new debit cards, leaving the old ones active until the new ones are activated. This is way better than having to cancel mine during the holidays and waiting for a new one to arrive (last time it took my bank almost 2 weeks before I received a replacement for a lost card and that was a non holiday period). Once the old cards are replaced, the old numbers cannot be used to debit any money from your account.

 

[traces7]

I don't use my debit card at all.

My credit card gives me perks that a debit card just cannot match.

Its not attached to a bank account so if there is fraud I don't have to wait months to get my money back.

Mine also has coverage for extended warranties

And if there is an error in charges I am also not out say the price was to be $7.89 but some how the charge got put in at $78.90

And if you have an issue with a business a credit card dispute is better leverage as you are not out any money. Say you are on your way to the World and you already paid for your bags to fly but the airlines says you didn't. And in the rush to the airport you forgot the paperwork to confirm this. With a credit card you can pay for your bags and then call your company and place a hold/dispute these charges while you work with the airlines on correcting the issue.

I have thought of this as well. Right now I use my credit card occasionally and pay it off every month. I feel if I used it more frequently, I might accidentally charge more than I can pay off every month. So not sure I would want to go this route, but it's a possibility, I know there's much more protection there for sure!

 

[disney1990]

Have you changed your PIN numbers? That is the first thing you should have done.

 

[traces7]

Have you changed your PIN numbers? That is the first thing you should have done.

No I never use my PIN number so I haven't changed it and I didn't use my debit card at Target lately, I'm just nervous about using a debit card anywhere now. I haven't had a problem yet though!

 

[southlakejr]

About two years ago, my debit card was compromised. The low life pond scum (LLPS, for short ) hacked a grocery chain and gained PIN numbers and debit card numbers. My bank was incredibly responsive- I had my funds back within 72 hours, and a new card issued quickly.

Since then, my ATM card was compromised again (8 months later), as was my credit card. My bank has been fantastic at dealing with both, and labeled both issues as suspected fraud before any of my money was lost. (For some reason, they didn't think I would be pulling 500 out of a gas station ATM at 3AM)

I still use my debit card for most things. I know that there are risks, but there are risks with ANY form of payment- your credit card is just as easy to compromise as a debit card, someone can always steal your wallet if you're paying cash, etc. Perhaps you should speak to someone at your bank to address how they handle such issues, it may give you more peace of mind.

 

[seashoreCM]

I'm still nervous about using it, should I be? What do you all do?

The lady at the bank gave me an idea to set up a separate checking acct and keep a small amount in it just for the debit card, I may do that too.

Stop using the debit card and go get a credit card.

Second best: Have your bank close that particular card and re-issue it.

If you set up a separate checking account, then do that at a different bank where you have no other accounts or IRAs or certificates of deposit. The lady at your bank would love to keep your business there but she also knows well that her bank can take your money from yet another different account at the same bank to make up for an overdrawn account.

You have every right to be freaked out, and this kind of hacking could have happened anywhere at any time. This kind of hacking also exposes an inherent disadvantage of debit cards in general compared with credit cards -- the liability and whom that falls on.

Note that actual bogus charges might not show up until months later. Your particular card information might not get out into crooks' hands until then.

 

[swilshire]

I have never used a debit card for this very reason. I use a credit card for everything, enjoy the points I earn, and pay it off every month. The credit card companies are very good at watching for fraud (alerting sometimes even when it doesn't exist).

Sheila

 

[MillauFr]

I have never used a debit card for this very reason. I use a credit card for everything, enjoy the points I earn, and pay it off every month. The credit card companies are very good at watching for fraud (alerting sometimes even when it doesn't exist).

Sheila

Yes. Exactly. They are good at watching for fraud because they pay for it not the card holder.

 

[Tarheel girl 1975]

Stop using the debit card and go get a credit card.

If you set up a separate checking account, then do that at a different bank where you have no other accounts or IRAs or certificates of deposit. The lady at your bank would love to keep your business there but she also knows well that her bank can take your money from yet another different account at the same bank to make up for an overdrawn account.

You have every right to be freaked out, and this kind of hacking could have happened anywhere at any time. This kind of hacking also exposes an inherent disadvantage of debit cards in general compared with credit cards -- the liability and whom that falls on.

A bank could do that, but they will usually contact you to bring the account current first. They also would not be likely to transfer funds if the account holder had reported the fraud. The liability is the same for both debit and credit cards.

 

[descovy]

I have thought of this as well. Right now I use my credit card occasionally and pay it off every month. I feel if I used it more frequently, I might accidentally charge more than I can pay off every month. So not sure I would want to go this route, but it's a possibility, I know there's much more protection there for sure!

You could "train" yourself with an old checking account (or open a new one)

Everytime you make a charge transfer the money into the unused account. That way it will be there when the bill is due and you will keep your normal checking account current.

Another thing you can do, is take out cash for small purchases just to cut down on the number of transactions to keep track of. For me, it's $100 every 2 weeks (payday). Little stuff I pay cash for.

I haven't used a debit card in years. When we first got married ('97) we did because everyone says "credit is ebil". It's not. You just have to be smart! The constant little debits were driving me crazy! And trying to keep track of his vs mine... And trying not to overspend on the debit card... Because of the real bills that need paying! (Rent, etc...)

For the past 15 years we take out $100 cash for the small stuff and charge the big stuff. If you have enough discipline to balance your checking account with debit transactions you should be able to stay on top of a credit card.

 

[lucyem]

I have never used a debit card for this very reason. I use a credit card for everything, enjoy the points I earn, and pay it off every month. The credit card companies are very good at watching for fraud (alerting sometimes even when it doesn't exist).

This. We stopped using debit cards like 15 years ago when an obvious double charge posted and the bank said it was our problem. Spent a day driving back to the restaurant a couple of hours away to get it fixed. After that we stuck with credit cards only. As credit card use (and thus fraud) got more prevalent it took a while for banks to get on the bandwagon and deal with the fraud. They still have things like a previous person mentioned "72 hours until the money is back" etc. While my credit card company fixes things I am out nothing. Plus I get points towards Disney

I also have a second small checking account for things like pay pal. Pay pal has also had issues in the past with fraud and I do not want my actual checking to be compromised.

I just like having buffers between possible fraud and my money.

 

[traces7]

Thanks for all the advice everyone, it sure is a lot to think about!!! I do already have 2 credit cards that we get points on, so I could use one of those if I do go that route. I have only used a debit card for about 2 years, before than I used checks. Thanks again!!!

 

[Swimalie]

I have never used a debit card for this very reason. I use a credit card for everything, enjoy the points I earn, and pay it off every month. The credit card companies are very good at watching for fraud (alerting sometimes even when it doesn't exist).

Sheila

Exactly!!

 

[seashoreCM]

A bank could do that, but they will usually contact you to bring the account current first. They also would not be likely to transfer funds if the account holder had reported the fraud. The liability is the same for both debit and credit cards.

You do not have to pay off the entire balance to get a suspected compromised card invalidated.

 

[ilovemk76]

I only use my debit card at my bank's ATM for cash. I never use it as a form of payment. I use a CC for most transactions. I use cash at a drive-thru or other places where a CC is not possible.

 

[aprilgail2]

I have never used a debit card for this very reason. I use a credit card for everything, enjoy the points I earn, and pay it off every month. The credit card companies are very good at watching for fraud (alerting sometimes even when it doesn't exist).

Sheila

I use my debit card for EVERYTHING, I typically carry no cash other than an emergency 100 dollar bill stuck inside my cell phone case. When we were in Florida we went to universal and the lady that was selling the tickets misunderstood what I wanted and sold me the wrong tickets, she took them back, credited my account and sold me the correct ones, that apparently set off a alert at my bank and next thing I know I am getting a call on my cell phone asking me about those charges.
Another time I was at work and my bank called me and asked if I was in Connecticut purchasing a computer and other electronics-I said no I was at work in NY. Someone was using my debit card to buy all sorts of stuff. the money was back in my account within 48 hours.

 

[IDoDis]

I'm seriously considering getting rid of my debit card, because this whole thing with Target makes me nervous about using it. Luckily I haven't shopped at Target lately! I guess I'm mainly worried about someone getting the money from our account. Right now our debit card is tied to our checking account. I do have limits on it $50 at ATM, $200 at point of sale. I just checked into that today. Still makes me nervous! I never use it at the ATM, so I considered putting that to 0. I only use it as credit at stores (grocery store, Walmart, etc) I never use it as debit with my PIN # (I don't even remember my PIN #) and never use it at gas stations or restaurants. I'm still nervous about using it, should I be? What do you all do? This week I got cash from the bank and plan on using that when I go grocery shopping tomorrow! The lady at the bank gave me an idea to set up a separate checking acct and keep a small amount in it just for the debit card, I may do that too. Any suggestions or advice? Thanks so much!

We do that (separate debit account) when we go on vacation and when we eat out. Anytime my card is out of my view makes me a bit nervous. Of course when we go on vacation, we also have our other debit and credit cards with us in case the "vacation" card gets lost or compromised. But in all these years, nothing has ever happened. I also like using the separate card on vacation because it keeps us within our budget of spending only what is on the card, and I have no guilt spending it because it's not coming out of our "real" account. However, my Chase credit card had fraud usage on it twice in two months recently. The first time it was for $289 in Mary Kay products in Iowa. The second time it was for over $500 on some type of metal in Wisconsin. I was not held responsible for either one. Chase caught the metal purchase right away. The CS rep said the theives buy metal and then resell it for cash. You are not liable for fraudulent purchases, so I would not go as far as never having a debit card and always carrying cash. I had my purse stolen out of my grocery cart about 15 years ago and lost $175.00 that I could not recover. Carrying a card is safer in that respect.

 

[Swimalie]

Someone was using my debit card to buy all sorts of stuff. the money was back in my account within 48 hours.

For some people, they can't afford 48 hours for stolen money to come out of their account. This is why a debit card is not a good idea for 99.9% of cases.