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The way I understand it is that your exposure on CCs is limited to about $50 by law. While debit cards with a CCs logo (i.e. Visa debit, etc.) will traditionally honor this $50 limit, there is nowhere near the same guarantee.

False. The EFTA says that you're limited to $50 liability on debit cards as well if reported within 2 days.

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However, more important to me is that if you dispute a CC bill, you keep your money until it's sorted out.

And vice versa, I have access to my $10k credit limit card if my debit card is stolen. If my credit card is frozen, I have a lot less access to funds.

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If you dispute a DC charge, you have to fight like hell to get back the money that you probably need for other things

Same fight you will have with your CC company and I actually had an easier time dealing w/ my local bank than I did over the phone with my CC company in India.

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Posted by Putty

Member since Oct 2003

25489 posts

Posted on 6/26/13 at 10:25 am to LSUAfro

It does appear the EFTA was formally amended to add debit cards; however, you are still in a much better position with credit cards. With CCs, you are exposed only to $50. With DCs, your exposure may be limited to $50 IF.

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How to Limit Your Losses
The Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) offer protection if your credit, ATM, or debit cards are lost or stolen.

Credit Card Loss or Fraudulent Charges
Under the FCBA, your liability for unauthorized use of your credit card tops out at $50. However, if you report the loss before your credit card is used, the FCBA says you are not responsible for any charges you didn’t authorize. If your credit card number is stolen, but not the card, you are not liable for unauthorized use.

ATM or Debit Card Loss or Fraudulent Transfers.
If you report an ATM or debit card missing before someone uses it, the EFTA says you are not responsible for any unauthorized transactions. If someone uses your ATM or debit card before you report it lost or stolen, your liability depends on how quickly you report it:

If you report: Your maximum loss:
Before any unauthorized charges are made. $0
Within 2 business days after you learn about the loss or theft. $50
More than 2 business days after you learn about the loss or theft, but less than 60 calendar days after your statement is sent to you, $500

More than 60 calendar days after your statement is sent to you. All the money taken from
your ATM/debit card acount, and possibly more; for example, money in accounts linked to your debit account.
If someone makes unauthorized transactions with your debit card number, but your card is not lost, you are not liable for those transactions if you report them within 60 days of your statement being sent to you.