[ale] OT: I AM paranoid!

[Jeff Hubbs]

Take away that guy's mallet and button!

>From www.ftc.gov:

**********************************************************************

Credit Card Loss or Fraudulent Charges (FCBA). Your maximum liability
under federal law for unauthorized use of your credit card is $50. If
you report the loss before your credit cards are used, the FCBA says the
card issuer cannot hold you responsible for any unauthorized charges. If
a thief uses your cards before you report them missing, the most you
will owe for unauthorized charges is $50 per card. Also, if the loss
involves your credit card number, but not the card itself, you have no
liability for unauthorized use.

After the loss, review your billing statements carefully. If they show
any unauthorized charges, it's best to send a letter to the card issuer
describing each questionable charge. Again, tell the card issuer the
date your card was lost or stolen, or when you first noticed
unauthorized charges, and when you first reported the problem to them.
Be sure to send the letter to the address provided for billing errors.
Do not send it with a payment or to the address where you send your
payments unless you are directed to do so. 

ATM or Debit Card Loss or Fraudulent Transfers (EFTA). Your liability
under federal law for unauthorized use of your ATM or debit card depends
on how quickly you report the loss. If you report an ATM or debit card
missing before it's used without your permission, the EFTA says the card
issuer cannot hold you responsible for any unauthorized transfers. If
unauthorized use occurs before you report it, your liability under
federal law depends on how quickly you report the loss.

For example, if you report the loss within two business days after you
realize your card is missing, you will not be responsible for more than
$50 for unauthorized use. However, if you don't report the loss within
two business days after you discover the loss, you could lose up to $500
because of an unauthorized transfer. You also risk unlimited loss if you
fail to report an unauthorized transfer within 60 days after your bank
statement containing unauthorized use is mailed to you. That means you
could lose all the money in your bank account and the unused portion of
your line of credit established for overdrafts. However, for
unauthorized transfers involving only your debit card number (not the
loss of the card), you are liable only for transfers that occur after 60
days following the mailing of your bank statement containing the
unauthorized use and before you report the loss.

If unauthorized transfers show up on your bank statement, report them to
the card issuer as quickly as possible. Once you've reported the loss of
your ATM or debit card, you cannot be held liable for additional
unauthorized transfers that occur after that time.

**********************************************************************

So, the protections *aren't* the same, and inasmuch as the banks might
*say* one thing, they're only going to stay serious about stuff that
keeps them within Federal law.  

- Jeff



On Fri, 2003-10-10 at 09:29, Jim Lynch wrote:
> James P. Kinney III wrote:
> 
> > On Thu, 2003-10-09 at 22:25, Jeff Hubbs wrote:
> > 
> >>For one thing, NEVER use a debit card for these kinds of remote
> >>transactions!  You have FAR fewer protections associated with debit
> >>cards than credit card carriers give.  
> >>
> >>- Jeff
> > 
> > <GONG!!> <BZZT!>
> > Sorry. Wrong answer. Debit cards have the exact same protections as
> > credit cards. Because they use the same data transfer mechanism as a
> > credit card AND they carry the Visa/Mastercard logo to indicate the who
> > processes the transaction, they are covered under the same fraud
> > prevention technologies and $50 limit that credit cards have.
> > 
> > That said, there are some bank cards that are debit cards that are not
> > part of the Visa/Mastercard system that do not carry those protection
> > limits. Those cards can't be used as a credit card when a business
> > doesn't support the debit card feature. If that gets compromised, the
> > card holder is screwed completely to the wall (floor, ceiling, door
> > frame). Those cards are generally handed out at the smaller banks to
> > lower income customers who don't qualify for a credit card. 
> GONG yourself.  While they might have the same technologies, federal law 
>   does protect credit card users but not debit card users.  Most banks 
> claim they give you the same rights, but in case they don't honor that 
> statement you're screwed.
> 
> Jim.
> 
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-- 
Jeff Hubbs <hbbs at comcast.net>