Does lowering the daily spending limit on a debit card from $3000 to $500 greatly reduce the amount which can be fraudently charged on it if the card were lost or stolen? In other words, is the fraudulant charger cut off after $500, or doesn't it work this way?
no idea, i just keep my atm card unused except for pin transactions. too much fraud these days lol. I did get robbed for $7 for phone sexor on my atm card, didnt have to pay squat since it was a visa transaction. I think i have $500 daily withdrawal and $10K daily spending limit on mine, its hard to get them to raise the daily withdrawal much at my CU but they dont mind raising the charge limit, odd.
Originally posted by milavant Does lowering the daily spending limit on a debit card from $3000 to $500 greatly reduce the amount which can be fraudently charged on it if the card were lost or stolen? In other words, is the fraudulant charger cut off after $500, or doesn't it work this way?
It does, HOWEVER, more importantly, you need to verify with your bank how you are protected if these things should happen.
BofA and Wells Fargo both have zero dollar liability on their debit cards, so $500 or $5,000 - it doesn't matter TO YOU - because you would be covered. (Yes there is a time lag because there will be an investigation. This investigation is regulated so you are supposed to get provisional credit for the full amount in dispute at the end of 10 business days.)
NOT ALL BANKS OFFER THAT TYPE OF PROTECTION, or if they do IT MAY NOT BE FREE. For example, Washington Mutual offers fraud protection for a $5 monthly charge.
Call your bank and verify your debit card terms just to be on the safe side. (BTW, I am a Wells Fargo bank manager and even I don't carry a debit card anymore. I know I'm protected, but I like using cash or credit cards much better.)
I work for a merchant and have a check card such as what you have. I think I can add to this-
1) asking for PIN only card if this is what you chose to do will limit YOUR ability to use the card if a) a given merchant's PIN connection is down and b) if the card's strip gets demagnatized, damaged, or otherwise will not swipe. Please understand I'm not discouraging you from getting this type of card if you prefer it, but there are pluses and minuses to both cards. Also, with your check card, when the transaction is Visa processed, Visa policies and regulations apply (ie 0% liability policy, no merchant surcharges, etc) as well as any sweepstake promotions Visa is currently sponsoring at that time.
2) If your bank is willing to reduce your spending limit to a level you feel more comfortable with, that may be the way to go. However, whether or not you choose to do this, it has been my experience that when banks start seeing a lot of unusual charges or attempted charges/authorizations, they will flag the card as a frequent use card, in which case the merchant is authorized to ask for ID and depending on what the terminal says may be required to call a special phone # to get a special approval # to put the transaction through (this goes for credit cards as well as check/debit cards). Also the cashier/customer service rep at that merchant should advise you to call your bank immediately when this occurs because if you don't, they may shut your card down altogether until you do (trust me, i've seen it happen). Factors in deciding whether or not the bank's computer flags your card include where you are using it at (ie whether or not you are near home), the number of attempted authorizations at particular types of merchants (gas stations, grocery stores, etc) as well as the dollar amounts of authorizations and transactions. If you ever need to use this card for an emergency (say, an emergency car repair/tow or trip outside your home area) reducing your spending limit may not be the best option, although i'm not discouraging you from doing so if you feel that's appropriate. I'm sorry this is so long everyone, but I'd like to make one additional point while i'm thinking of it-whether your card is a credit, atm, or a credit/check card, if you are planning any trips outside your immediate home area for any reason, call the banks behind all cards you plan to take with you BEFORE you go-otherwise, they may shut down your card before you get home and you will be stuck (I live in a tourist town, i've seen this happen). Anyway, I hope this helps!