Debit card facts cover a wide spread of information. Debit card holders need to update themselves about the liability quotient of the debit cards, forum for debit card fraud, special features if any, the transaction procedure and other relevant information.
Some Debit Card Facts on the Liability Quotient
In the USA, debit cards have a high liability as compared to credit cards. Banks gain substantially from debit cards using signatures. Debit cards are essentially ATM cards that generally come with a VISA logo or a MasterCard logo.
The debit cardholder can either use his PIN or simply put his signature to make transactions through these cards.
More Debit Card Facts
In case of a debit card fraud, the thief can theoretically steal the cardholder’s entire checking account.
The bank takes at least 10 days for carrying out the required investigation for refunding the money. Debit card liability can attract a high penalty of up to $500.
This will be the case if the bank is notified of the problem after a gap of 48 hours. The penalty charges the entire checking account balance of the card holder. An additional penalty amounting to the debit card holder’s maximum overdraft credit limit may accrue to the card holder if he fails to inform the bank within a period of 60 days.
Some Risk Mitigating Debit Card Facts
It is advisable to use debit cards for transaction with traders who have substantial goodwill as plastic card frauds are becoming very common incidents. At the same time, while making any kind of transaction through the debit card, the cardholder should not allow the card to go out of sight. The person in a store swiping one’s debit card must do so under one’s direct observation. The information theft of a debit card may take place in restaurants, cash counter of departmental stores and so on. This information is used later for carrying out the fraudulent activities.