When ATM systems came out, I was thrilled because it required a 4-number, PIN. Issued by my bank, it might not always be available and out of network, often a surcharge, but there was a 4-number, PIN. I would not have to carry cash. I had long since decided credit card over-draft or theft was not a problem because it took 'credit card' money, not my checking and savings account. So when my wife's wallet was stolen, no problem. We reported the theft, the fraudulent charges were reversed and life was good. So when clerks didn't even glance at the signature on the back to verify against the receipt, no problem as that is 'credit card' money, not mine. Still the ATM/debit card provided another option, PIN protected. About 10 years later, I was issued an ATM card with a VISA logo. It could also be used as a credit card BUT you had to 'activate' the credit card option by calling a 1-800 number. I just didn't call the number. Every now and then, a clerk would try to run it as a credit card but it would fail. I would have them run it as a debit card and after entering my PIN, voila. Then one day the clerks mistake worked and I was livid. Now my primary checking and savings account were at risk so I canceled the card and went back to cash. Then I created a second checking account with no overdraft and ordered a replacement ATM/credit card linked to that no-overdraft account. Typically, I have only $500 in that account: Overdraft as a debit - it is declined and a surcharge Overdraft as a credit - it is declined and no surcharge At least once per year, I test the card overdraft because the BAnk STAff Revenue DepartmentS do not let you know when they muck it up. So I was amused to get a note with today's bank statement: Source: Visa note enclosed with bank statement. No problem, I have this evolved ATM, to debit, to personal bank account linked, credit card to test with . . . <grins> Eventually, Visa is going to have to go PIN with every credit and debit card. This will be a good thing BUT I am never going to tie it to my personal bank account with overdraft and payroll deposit. Or if they insist on having something like that, it will be a separate account with a 'soda straw' deposit of a very small amount. Never my primary checking and savings account or anything the BAnk STAff Revenue DepartmentS has access. Uh Oh! I posted too soon. You can not initiate the password but have to wait until you are buying something to get an "ACTIVATE NOW" button. Then you create your 'password', which I call password by ambush. It is one of the worst environments to make a strong password . . . another BAnk STAff Revenue DepartmentS victory. Well Mr. Google to the rescue. I found a web site that allowed me to set the code. Now to find out if it has just been 'captured.' <grins> Bob Wilson
I originally rejected that card, and kept asking for ATM-only cards. They complied. After firing the bank for other reasons and going with a credit union, I did end up with a VISA logo debit card. I need to re-think that choice, as I still get by just fine without debit. It gets used only when mistaken for a similarly colored credit card, where it gets flagged but still goes through. Until the US moves to the more secure chip cards used in most of the rest of the world, this is too much risk.
Most people (including myself until my debit/credit card got hijacked when used as a debit card with PIN) aren't aware of the huge difference in protections between a debit/credit card (when used as a debit card with PIN) and a straight credit card. When not using cash- I now avoid the combo debit/credit card whenever possible and use the standard Visa/MC/Discover cards. The only place I use the debit w/PIN now is Costco because I don't have the credit card they take. The short version is- with a std credit card- you get fraud protection by making one quick phone call. With debit card the money is actually withdrawn from your checking/savings account and you're on the hook for the charges until you convince the bank you didn't make the purchase.... it can take 7-10 days before they replace the funds in your account. And then they reserve the right to reverse the refund in 90 days if their investigation shows you were negligent with the PIN.
