Monday, October 31, 2016

Avoid Debit Cards

What I Learned When My Husband's Debit Card Was Stolen
Kerry Hannon, Contributor | Forbes.com
"With credit cards, federal law limits your loss at a maximum of $50 if your card is lost or stolen... If someone uses your debit card before you report it lost or stolen, your liability really depends on how quickly you report it. Within two business days after you learn about the loss or theft, you could be responsible for up to $50, according to federal law. More than two business days after you learn about the loss or theft, but less than 60 calendar days after your statement is sent, you could be on the hook for up to $500. After 60 days, you might not be reimbursed at all."

My Comments About The Article Above
I encourage everyone to set up eAlerts for each of their accounts. I've never thought it wise to allow auto pays nor any other method whereby someone gains direct access to checking or savings accounts. Auto pays can go terribly wrong if the billing gets screwed up. Neither do I think it wise to link checking accounts allowing them to tap into savings for any reason. No auto anything is a good rule to follow.

CREDIT CARDS:
If someone whacks your credit card it's one thing. Entirely another if a checking account gets hammered rendering someone useless to pay any other bills. In addition most credit card companies offer ways to generate temporary account numbers with capped dollar amounts for online use. For example my cell phone carrier and several merchants I deal with save credit account numbers. I generate temporary numbers with a cap for within a few dollars of what I'm purchasing. We've all seen what can happen when hackers gain access to some of these merchant's sites. In my case, fat lot of good it will do them.

CHECKING ACCOUNTS
Always keep them separate from savings. Linking the two could drain them both. Why anyone does this is beyond me. I use savings as a means to completely separate the two Since today's savings accounts pay less then 1%.what would be the point otherwise?


DEBIT CARDS
I see no good reason for the use of debit cards. Most credit card companies charge $0 if the monthly balance is paid off I haven't paid a single dollar interest or fees in years. Nearly every employee and Social Security retiree receive their money via direct deposit. If something gets messed up, unlike debt cards, credit cards provide a cushion for up to 30 days allowing someone to make a much smaller payment on the balance until things can be straightened out..







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