how safe is it to use debit cards for on-line purchases these days?

B

BigAl3

New member
i was curious how safe it is to use debit cards for on-line purchases these days? the only time i use my debit/check card is if i'm purchasing items in person like at wal-mart, target, k-mart, etc... i primarily use one credit card specifically for this, but hate waiting for the bill to come and would rather have my money taken out immediately. not to mention... my debit/check card is the one i use most frequently for withdrawals, deposits, etc.. also, i wouldn't want any hassles/problems having to get a new account, checks, etc... where as with a credit card i could just cancel it... any good advice/recommendations?
 
It's mostly safe.. as long as you are sure who you are doing business with.



Alternatively, I think some banks and even PayPal offer a temporary CC# service where you can get a one-time use account for buying online.
 
Safer than handing it to a cashier / waiter, etc. I forget the perrcentage, but I just saw a news story on this recently. Per transaction, it's a lot more likely that your number will be swiped by someone you hand your card to vs. online.
 
Well, I would personally use a credit card for online transactions. Debit cards deduct money directly from your account, so if there's a mistake or anything, it's harder to correct. With credit cards, you have a company which you can call to resolve disputes, perform chargebacks, etc. I suppose debit card transactions are fairly safe nowadays, I don't know for sure, but if the debit card really gets into the wrong hands, it's going to be harder to get your money back compared to if you had a credit card.
 
The problem is any computer can get hacked and numbers (either debit or credit) stolen and used by the hackers. For as long as your number is saved on any server, it's at risk.



After I started doing a lot of my shopping online, I switched to using virtual account numbers which is generated by my credit card company (mine happens to be Citibank). The number expires after a month and can be used only at a specific online store so even if it's stolen, it cannot be used to make purchases elsewhere. You can even cancel the card number after the transaction to make sure it's not used again (not advisable if you might need to return an item, however).



I also used credit cards' customer service reps when products never arrive or arrive damaged and the merchant doesn't want to make good on the purchase. The good ones keep calling the merchant for you until the dispute is resolved.
 
I use my debit card online all the time and with the hundreds of transactions I have done with it, I have had 0 trouble. I would say it is quite safe. A thing to look out for is that in the check out of the site is has a https then the web address. the S means secure.



Greg
 
BigAl3 said:
i primarily use one credit card specifically for this, but hate waiting for the bill to come and would rather have my money taken out immediately. my debit/check card is the one i use most frequently for withdrawals, deposits, etc.. also, i wouldn't want any hassles/problems having to get a new account, checks, etc... where as with a credit card i could just cancel it...
Click to expand...



If you want to see your bill before it arrives, most credit cards let you see your current purchases online before the final statement is processed.



My debit card's number is different from my checking account number so when I lost my wallet recently, I just had to get a replacement card. It did take several days to get it compared to the credit card which, if I wanted, I could get the next day by paying a nominal fee.
 
Yea, but as zingyginger said, with credit card purchases, most credit card companies (I've heard AMEX is very good) help you resolve any issues, such as items not received, incorrect items, refunds, price protection, fraudulent merchants, etc.. With debit card, it's harder to do that.



A virtual credit card seems like the best way to go. One-time use numbers that can be created whenever you need it. Prevents any overcharging.
 
Not to scare anyone but security breaches are common.



In one of the big ones recently, for over a year, 45.7 million credit cards were stolen from the computers of TJX (parent of T.J. Maxx, Marshalls, HomeGoods and other chains) using software to capture data including names, addresses and driver's license numbers.



It came to light after some people were caught using the stolen credit card #s after they spent over $8 million in Walmart gift cards. Although a Ukrainian man who was suspected of selling the credit card info online was arrested in Turkey, they haven't found the original perpetrator(s).



http://www.informationweek.com/shared/printableArticle.jhtml?articleID=201400171



Another example: a recent accidental printing of credit card & debit card numbers by a newspaper:

Security: Another Day, Another Quarter-Million Credit Card Numbers Made Public - Consumerist



So unless your online retailer is writing this down on a scrap piece of paper, processing the charge then throwing the scrap away, there's always a risk. If you can, ask the merchant to save only the details of the transaction, not your personal info.
 
it's okay, but it's better to use a credit card.



Assuming your debit card is a quality one and goes through a major credit agency... you should be entitled to free fraud protection. But its more complicated if something does happen with a debit card.



I once had a $100 charge from MALAYASIA on my old debit card. Had to get some forms signed and even notarized (!!) to get it taken care of. What's funny is that I only used that thing once or twice.



Anyway, I just use my credit card everywhere now, unless someone doesn't accept American Express. Then I'm kind of forced to use my Visa debit card from my online bank.
 
Best argument I've seen for using credit instead of a debit card:

Nicholas Weaver's Random Thoughts: Personal Financial Security Protocols



"Although the fraud protections for ATM/check cards are as good as credit cards, until the dispute is resolved it is *my* money that is missing, not the banks. If someone fraudulently used my credit card, the worst case would be the card stops working (and I have two cards). If someone fraudulently accessed my bank account my rent check might bounce before I found out."
 
I also prefer paying with my credit card in the case that something goes wrong, I have always felt the credit card company would be more willing to help (it's their money) vs the bank (it's your money).



Recently around here in LA/Orange County, there's been a string of credit card theft at gas stations where they place an identical card reader/keypad over the original and captured customer's debit card info that way. They advised people that if they were using a debit card to pay to use it as a credit card instead (since most debit cards are also Visa/Mastercard).



I'm more worried about a waitress stealing my cc info than an online website getting hacked into. I feel I'm more cautious about my personal identity than most people, but I still had my identity stolen. I got lazy and for a period of time didn't monitor my credit report for a good 3 years. I still don't know how my info was stolen, but my best guess is that it was someone from work since we all had access to running credit and getting people's information.



My advice, no matter how careful of how you handle your credit cards and your personal identity is to get your credit report from all 3 bureaus at least once a year. Dealing with identity theft isn't exactly a piece of cake. I got the run around from everyone, including the local LA County Sheriff's dept. I've still yet to resolve my issues.
 
mikebai1990 said:
Well, I would personally use a credit card for online transactions. Debit cards deduct money directly from your account, so if there's a mistake or anything, it's harder to correct. With credit cards, you have a company which you can call to resolve disputes, perform chargebacks, etc. I suppose debit card transactions are fairly safe nowadays, I don't know for sure, but if the debit card really gets into the wrong hands, it's going to be harder to get your money back compared to if you had a credit card.
Click to expand...



This is absolutely correct! Once the money is deducted from your account, which is instantaneous, it is a hassle to get it back; whereas, with a credit card purchase, there is protection against fraud. You don't have to pay while the matter is in dispute. Translation: You keep your money until the matter is resolved versus trying to get your money back.
 
I just opened a new account with a local bank and specifically asked about fraud protection with online purchases; the CS rep said I am covered against all fraud (the debit card is through Visa), but I should report anything suspicious asap so they can restore money to the account until a resolution is determined.
 
jasonmac said:
I just opened a new account with a local bank and specifically asked about fraud protection with online purchases; the CS rep said I am covered against all fraud (the debit card is through Visa), but I should report anything suspicious asap so they can restore money to the account until a resolution is determined.
Click to expand...



Just make sure you understand their policies correctly. I wouldn't go by what a CS rep said because CS reps are notorious for giving out incorrect answers. Go on their website or read their brochure in writing so you fully understand what exactly they cover. I know that with some personal banks, they'll only cover the fraud after a certain amount, so you still pay a "deductible" out of your pocket.
 
Right. The way it worked with my bank is that I called them... they asked me quite a few questions. They then mailed me 3-5 forms I had to fill out.



Oh, that wasn't it, though. I had to get one of them notarized, too! Luckily I finally managed to find that my friend worked with someone who was a certified notary and willing to notarize my paper for free. Only later did I find out I could've probably gotten free notary services from my local credit union. Oh well.



After I sent that back... they finished their "investigation" and credited me back the money. It wasn't a hassle per se... but it was time-consuming, plus I had to spend my own time driving around and getting it all fixed up.



Plus, when I started, I got the impression as if they didn't believe me and didn't want to help me. As I progressed, however, I got increasingly friendly people who were definitely on my side.
 
I only pay for online purchases via money order and have had zero issues. This is due in great part to having had my checking/debit + PayPal + eBay accounts hijacked a few years back and spending months seeking resolution and ultimately, never recieving full restitution. :( I ended up dropping PayPal entirely and cancelling an ebay account where I had amassed over 200 positive feedbacks.
 
You must log in or register to reply here.
Back
Top