Debit Card Protection

Filed Under Prepaid Debit Cards

Prepaid debit cards are getting more and more popular every day. People are discovering that they actually work better from a budget and money management standpoint than credit cards do. So they’re gaining a lot of ground in the marketplace.

One thing that still confuses consumers though is the protection or liability issue. Namely, what kind of protection against fraud or loss does a debit card have? Is it the same as for a credit card? If it’s different, how different is it?

Well, one thing to keep in mind is that when you get a reloadable Visa debit card or a reloadable MasterCard, you’re getting a true Visa or MasterCard – not some knock-off version. That means you’re receiving the same kinds of protections afforded on their credit cards. For instance, Visa has had a “Zero Liability Policy” for quite some time which has covered unauthorized purchases on both its credit cards and prepaid debit cards. So when it comes to protection, debit cards are not second-class citizens.

Now how far these protections go is another question. For instance Visa’s protections don’t apply to ATM transactions or PIN purchases not processed by Visa. That means if someone were to steal your card and PIN, they could wreak havoc on your account balance in a short amount of time. Visa wouldn’t reimburse you for that damage. So it’s always wise to read the fine print on any policy that has to do with your money. To read Visa’s policy, you may click here.

In addition to the routine Visa or MasterCard debit card protection, your individual debit card company will offer certain other safeguards as well. They will be pretty standard from company to company but it’s important for you to read their fine print and understand what they will and will not do for you. Most debit card fraud protection for instance is based on you taking reasonable precautions and using your card in a reasonable manner. Read your policy to find out what that means

To be on the right side of all this reasonableness, you have to take some precautions. For instance, to be on the safe side with your debit card, or for that matter any plastic in your wallet, you need to use good old common sense. Don’t rely 100% on the good graces of the card companies or the banks – they really don’t have your best interests at heart. Supply a certain degree of protection yourself.

For one thing, you should have a list of all your card numbers along with the phone numbers and websites that you can use to contact the card company. In that way if you lose your card or have it stolen, you can report it easily enough. Keep that list with your important paperwork – don’t carry it around in your wallet!

Another thing you can do is regularly review your transactions. Get into the habit of taking a look at them online every day, or every other day. In that way you can identify anything that looks out of the ordinary and react to it fast. It will not only help you spot possible fraud but it will help you spot bank mistakes or shenanigans as well.

Yet another technique you can employ is to sign up for automatic alerts. These are offered almost universally by any company doing any business in the credit or debit space. Most can be sent to your email or even to your phone. You can program when and how often you receive them and they act as a safeguard against any sneaky, unauthorized transactions.

If you think you’re a victim of theft or fraud you need to contact your issuing bank or card company as fast as possible. They have the ability to almost immediately shut down your account. This will protect your balance from thieves and fraudsters.

In the end there are two kinds of debit card protection. The kind the debit card company or issuer provides and the kind you provide. So don’t make the mistake of assuming you have a certain kind of coverage; read the fine print and learn for a fact what you’re exactly covered for. And take the extra steps outlined above to put yourself in a stronger, more secure position.

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