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Will That Be Plastic or Plastic?

Will That Be Plastic or Plastic?

3/10/2011

Celebrating National Consumer Protection Week your Better Business Bureau offers the following information to consumers about differences between credit and debit cards:

Do you realize which card carries the most risk? A stolen credit card or a stolen debit card? Without a doubt a stolen debit card carries more risk.

Federal law says that you can only be held liable for $50 of fraudulent charges on your credit card. Many banks will waive that charge.

According to www.federalreserve.gov if your debit card is stolen your loss is limited to $50 --- but you have to tell the financial institution within two days after learning of the loss or theft of your card. If not, you could be held liable for $500.

There’s more. If you let the unauthorized transaction go unreported more than 60 days after it appears on your statement, you are liable for all the charges! However, if you check your bank account transactions online at least once a week, you will know what is going on with your account.

There’s an even bigger problem with the debit card. The thief can clear out your entire bank account by using your PIN at an ATM. This leaves you with no money to pay your bills. Granted, the bank could cover most of your losses and return money to your account, but that will take time to do the necessary investigation.

Also, because the money for your transaction with a debit card is taken at the point of purchase, you could possibly run your balance too low and end up with an expensive overdraft charge.

Some people argue that it is better to use a credit card because you are using someone else’s money until the statement is due. So, if you are charging at the beginning of the billing cycle you have a month to use someone else’s money.

By using a debit card for those small dollar transactions, you don’t have to carry as much cash, plus you won’t have a bunch of small transactions on your credit card to check at statement time. Besides, many times businesses don’t like you to make charges for a small purchase.

03/14/2012

In the News -- Tax Scams Strike in Tax Season

In tax season, scams include phishing emails that appear to be from IRS as well as identity theft. Know your preparer and watch the details.

01/04/2012

New Year’s Resolution: Avoid Holiday Debt by Starting a Christmas Club Today

Now is the time to plan ahead so the 2012 holidays are merry and bright, not overshadowed by looming debt. Starting a Christmas Club account might be the perfect way to get your finances off to the right start this new year.

11/02/2011

How You Give is Just as Important as What You Give – Give Wisely this Holiday Season

Because of technology and the creativity of charities, there are many different ways that donors can give to a worthy cause. Whether you’re giving money, canned goods, used items or your time, BBB Wise Giving Alliance reminds donors that how you give is just as important as what you give.