Debit Card Dangers
A debit card is an ATM card that is tied to your checking account. You can use debit cards for purchases in stores, restaurants and online. While there are many conveniences in making debit card purchases, there are also some drawbacks. Being aware of debit card dangers before making purchases can save you from being charged for unauthorized transactions and overdraft fees.
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Unauthorized Debits
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Unauthorized debits can happen if someone gains access to your debit card account information. When this happens, your bank account can be drained very quickly. You should notify your bank immediately of any unauthorized transactions to your debit card. While credit card companies hold accountability for unauthorized transaction to $50, debit card liability for unauthorized transactions could be as much as $500. It may take the bank up to 10 days to investigate an unauthorized charge to your account. In the meantime, this could cause you to become overdrawn on your bank account.
Stolen Pin Numbers
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Criminals have been known to use such practices as using miniature cameras to capture personal identification numbers from debit cards. Some merchants also store debit card PIN information where they can be stolen by accessing the store's computer system. Once a criminal has your debit card number and PIN, a counterfeit card can be made and used at an ATM machine to drain your bank account.
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Automatic Debit Scams
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Debit cards can be used to schedule automatic withdrawals from your checking account for mortgage payments, automobile loans and other monthly payments. Fraudulent telemarketers scam unsuspecting consumers by offering prizes or the chance to qualify for a credit card by giving them your banking account information. Once the telemarketer has your banking account information, automatic withdrawals can be made from your checking account without your prior knowledge.
Debit Card Blocking
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If you use your debit card to make a hotel reservation or to rent a car, the company can place a hold on your account for the total amount of the transaction. The block can also include fees for anticipated charges such as food, beverages and gasoline. If you pay your bill with the same debit card, the block is usually removed within a few days. However, if you use another card or pay with cash, your debit account can remain blocked for up to 15 days.
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- Photo Credit credit card and hand image by Warren Millar from Fotolia.com
