Comments on: Moments of fame http://funny-about-money.com/2008/08/11/moments-of-fame/ Simple Living = Frugality = Peace of Mind: Personal Finance and Stress Control Thu, 29 Jul 2010 20:18:14 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: funnyaboutmoney1 http://funny-about-money.com/2008/08/11/moments-of-fame/comment-page-1/#comment-1839 funnyaboutmoney1 Sat, 23 Aug 2008 05:27:09 +0000 http://funnyaboutmoney.wordpress.com/?p=359#comment-1839 I'm probably still encased in prehistoric amber. Years ago, a lawyer advised me never to use a debit card, claiming exactly what you say: that if a fraudulent debit made on one of those cards goes unnoticed for a fairly short time, you can be responsible for it, and that people not only have lost all the cash in their accounts but have had all their check bouncing protection reserve drain down. So they not only lost their money, they had to pay the bank back for the overdraft loan. Admittedly, I have no evidence of this other than the "expert" testimony of an attorney, some years old. Possibly banks have changed their policy or the law has been changed to protect consumers. If that's the case, then the only advantage of a credit card would be the float. No, make that two advantages: if you have a cash-back or rewards card, you get a little kickback from the card issuer. I’m probably still encased in prehistoric amber. Years ago, a lawyer advised me never to use a debit card, claiming exactly what you say: that if a fraudulent debit made on one of those cards goes unnoticed for a fairly short time, you can be responsible for it, and that people not only have lost all the cash in their accounts but have had all their check bouncing protection reserve drain down. So they not only lost their money, they had to pay the bank back for the overdraft loan.

Admittedly, I have no evidence of this other than the “expert” testimony of an attorney, some years old. Possibly banks have changed their policy or the law has been changed to protect consumers.

If that’s the case, then the only advantage of a credit card would be the float. No, make that two advantages: if you have a cash-back or rewards card, you get a little kickback from the card issuer.

]]> By: NtJS http://funny-about-money.com/2008/08/11/moments-of-fame/comment-page-1/#comment-1838 NtJS Fri, 22 Aug 2008 18:07:23 +0000 http://funnyaboutmoney.wordpress.com/?p=359#comment-1838 Thanks for the link! BTW - I don't understand your comments. How is it a good reason to use a credit card? They caught the problem *before* any charges hit our account, and it a way that I could only describe as 'best-in-class' - especially for a small regional bank. Also, there is this common misconception that debit cards some how leave you vulnerable to a criminal 'cleaning out your account' as if the bank just throws your money at them. Debit cards - likely for this purpose alone - have what's called a daily limit. I suppose if your balance is below that threshold, then they technically could. But that is simply not the case across the board. Also, Visa and MC both extend the same zero-liability policy as credit cards to debit. So fear not - still no reason to carry a credit card. cheers Thanks for the link!

BTW – I don’t understand your comments. How is it a good reason to use a credit card? They caught the problem *before* any charges hit our account, and it a way that I could only describe as ‘best-in-class’ – especially for a small regional bank.

Also, there is this common misconception that debit cards some how leave you vulnerable to a criminal ‘cleaning out your account’ as if the bank just throws your money at them. Debit cards – likely for this purpose alone – have what’s called a daily limit. I suppose if your balance is below that threshold, then they technically could. But that is simply not the case across the board. Also, Visa and MC both extend the same zero-liability policy as credit cards to debit.

So fear not – still no reason to carry a credit card.

cheers

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