Mighty Bargain Hunter

Some more Visa debit card questions and answers

Stumble it! Tip it! Facebook it! | 01/22/09

As promised a few weeks, here are some more questions about Visa debit cards, along with answers from Visa, and my comments.  I saved my personal favorites for this post, so I hope you find the answers educational and enlightening!

Question:  If someone gets hold of my debit card it’s possible for them to drain my bank account, or at least put a really big dent in the balance, instantly. This is not a problem with credit cards. Are there any steps I can take to safeguard my account (aside from not letting someone steal my card information)?

Visa’s Response: Tips to help you safeguard your account include:

• Review your statements carefully. If you suspect a mistake, call your financial institution immediately. And always follow up with a confirmation letter.
• If your card is lost or stolen, contact your financial institution immediately. This may reduce your liability if fraud losses occur.
• Choose a unique PIN. Avoid obvious choices such as your address, phone number, or birth date.
• Keep your PIN private. Memorize it. Don’t write it down or write it on your card, and never tell it to anyone.

Despite the popularity of debit cards, consumers are often confused about the security features and consumer protections debit cards offer. Many of the same features and protections provided by credit cards are also offered with debit cards.

It’s important to know that Visa debit cards carry the same protections as Visa credit cards. For example, all Visa cardholders are protected by Visa’s Zero Liability policy. This policy means you pay nothing if unauthorized purchases are made on either a credit card or a Visa Check card when you choose to sign for your transactions. Some financial institutions offer Zero Liability protections for certain PIN debit transactions as well, but the best way to ensure you are protected is to sign for your purchases. Visa’s Zero Liability policy also applies to purchases made on the Internet.

Continually monitor your account and review your monthly statement to identify any unauthorized transactions. If you notice fraudulent activity on your card, you should contact your financial institution as soon as possible and report it – this may help to reduce your liability.

If your account is compromised, Visa is committed to setting things right without further aggravation or inconvenience to you. Visa’s cardholder protection policy requires all financial institutions issuing Visa products to extend provisional credit for losses from unauthorized card use within 5 business days of notification of the loss. Many institutions will provide replacement funds even faster, sometimes within 24 to 48 hours.

My Comments: I’ve admittedly been a little confused myself about which protections debit cards offer when compared with credit cards.  It still is important to be vigilant but it’s also good to know that I’m not totally out of luck if something happens.

Question: I’d like to prevent a potential thief from getting my signature. Is it acceptable for me to print “PHOTO ID REQUIRED” in the signature block of my card rather than sign it?

Visa’s Response: Some people write “See ID” or “Ask for ID” in the signature panel, thinking that this will help prevent fraud or forgery. That is, if their signature is not on the card, a fraudster will not be able to forge it. In reality, criminals don’t take the time to practice signatures. They use cards as quickly as possible after a theft before an account is blocked. They are actually counting on merchants to not to look at the back of the card and compare signatures—they may even have access to counterfeit identification with a signature in their own handwriting. Bottom line: “See ID” or “Ask for ID” is not a valid substitute for a signature. A merchant has the right to ask the cardholder to sign the card before using it and if the cardholder refuses, to not accept the unsigned card.

Although Visa rules do not prevent merchants from asking for cardholders’ IDs, merchants cannot make presenting an ID a condition of the sale. Therefore, merchants cannot refuse to complete a purchase transaction because you refuse to provide ID. If a merchant does refuse to complete your purchase, please call the number on the back of your Visa card or 1-800-Visa-911 and provide the customer service representative with the name and location of the merchant.

My Comments: The “photo ID required” trick had been suggested to me a while back, but I’ve never tried it because it seemed to bring the possibility of a confrontation at the point of sale.  What it boils down to is merchant requirements at the point of sale, not cardholder requirements.  The merchant requirements are not well-known to most people, so it was good to sort this out.

Question:  What security features have come down the pipe that go beyond the PIN and the code on the back of the card?

Visa’s Response: Paying with a Visa card these days comes with several protections not available with cash or checks. When you sign for your Visa debit purchases, money comes directly from your checking account, but you also get security benefits that help prevent, detect and resolve fraud, including:

• Visa’s Zero Liability Policy, which protects you from unauthorized charges. Any funds taken from your account due to fraudulent use will be returned to you.
• Continuous fraud monitoring to detect and prevent suspicious activity on your debit card.
• Access to Identity Theft Assistance to help you recover your identity and prevent further problem.

My Comments: These are good things to know.  Developing other security features that make it more difficult to use someone else’s card in the first place would be even better.  The three points above are tripped only after fraudulent use has occurred.  But, also, there’s a trade-off between ease of use and security, so you could have the most secure card in the world but not be able to use it anywhere.

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