According to a recent Debit Issuer Study commissioned by PULSE, debit transactions grew by more than 14% in 2007. Although debit is a secure and convenient form of payment, it's still a good idea for card holders to practice basic precautions when using debit cards.
PULSE beckons awareness of security risks and exercise these important safety measures:
- Do not reply to unsolicited e-mails, pop-up messages or phone calls asking for personal or financial information. If you think you may have provided such information in response to a fraudulent request, notify your account provider immediately.
- Review checking, savings and other financial account statements regularly to verify all transactions, or better yet, frequently log into your accounts online to review all activity. Immediately report any unauthorized activity to the account provider.
- Review disclosures from your financial institution to understand what liabilities and responsibilities you have as a debit cardholder.
"Research shows that consumers are using their debit cards more than ever," said Cindy Ballard, executive vice president of PULSE. "With fraud tactics becoming more sophisticated, it's important for cardholders to understand the important steps they can take to protect themselves from fraud."
During the next three weeks, PULSE will release additional debit card security tips on protecting PIN and debit card information during in-store, online or phone transactions, as well as guarding against identity theft and fraud.
ATM and Debit Card Safety
- Treat your card like cash. Keep it in a safe place.
- Keep your personal identification number (PIN) a secret.
- Do not disclose card information over the phone to anyone. No one needs to know your PIN, not even your financial institution.
- Never disclose information about your card in response to an unsolicited e-mail or request.
- Make certain your Internet shopping sites are secure.
- Protect your card's magnetic stripe. Do not expose your card's magnetic stripe to magnetic objects.
- Report a lost or stolen card at once.
- Carefully review your account statements.
ATM Safety
- Observe the ATM surroundings before approaching a walk-up ATM. If anyone or anything appears to be suspicious, cancel your transaction and leave the area at once.
- If an ATM is obstructed from view or poorly lit, go to another ATM. It is a good idea to take along a companion when using an ATM, especially at night.
- Minimize time spent at the ATM by having your card out and ready to use. Do not let anyone see how much money you withdrew, and never count your money at the ATM.
- Never allow a stranger to assist you in conducting an ATM transaction, even if you have trouble or if your card is stuck.
- Stand between the ATM and anyone waiting to use the terminal so that others cannot see your PIN or transaction amount.
- Look for possible fraudulent devices attached to the ATM. If the ATM looks different or appears to have any alterations or attachments to the card slot or PIN pad, do not use it.
Drive-Up ATM Safety
- Keep the doors locked, windows up and engine running at all times when waiting in line.
- Leave enough room between cars to allow for a quick exit should it become necessary.
- Before lowering the window to use a drive-up ATM, observe the entire surrounding area. If anyone or anything appears to be suspicious, cancel your transaction and drive away at once.
- Minimize time spent at the ATM by having your card out and ready to use. Once your transaction is complete, take your money, card and receipt and immediately drive away from the terminal.
- If anyone follows you after you have completed your ATM transaction, go immediately to a crowded, well-lit area and call the police.
PIN Debit Safety
- Never allow the cashier or anyone else to enter your PIN for you, even if they are assisting you with the transaction.
- Block the view of others when using a POS terminal.
- Be sure the transaction is complete and you have received a receipt before leaving.
- If you received cash back, put it away before leaving the terminal.
- When using an outdoor POS terminal such as at a gas station, observe your surroundings before making a transaction. If anything looks suspicious, leave the area at once.
- It is a good idea to take someone with you when using an outdoor POS terminal at night.
- If anyone follows you after you have completed your POS transaction, go immediately to a crowded, well-lit area and call the police.
PULSE: PULSE is an ATM/debit network, currently serving over 4,500 banks, credit unions and savings institutions across the country. PULSE is owned by Discover Financial Services. The network links cardholders with more than 265,000 ATMs, as well as POS terminals at retail locations nationwide. The company is also a valued resource for industry research related to electronic payments and is committed to providing its participants with education on evolving products, services and trends in the payments industry.
ATM Debit Card Benefits - ATM debit cards are useful for withdrawals, deposits, transfers, balance information, and to get details on transactions. Money can be withdrawn using Visa or Mastercard terminals and using an ATM debit card. Deposits and transfers from one account to another are easy to make using the cards at available terminals. If information is needed on the available balance, it can also be viewed by accessing terminals using the ATM debit card. To see the details of all the transactions of the card, a statement is made available to the card holder that is generated by the issuing bank. Debit cards are popular as they are much faster than writing a check and they only require a PIN (personal identification number). When an ATM debit card transaction is processed using a PIN number, the card number is sent to the bank issuing the ATM debit card where it is verified. If there are available funds, the bank replies and the card holder is able to carryout the transaction. Debit cards can save banks time and money by eliminating check processing and they like to offer consumers the card.
When a debit card is stolen and a checking account is drained, it can take some time for a claim to be investigated and the account reimbursed. The first thing is to report the card stolen and consider closing the checking account, open a new one and get new bank cards. Don't forget to make changes for any direct deposits. When a bank account has been ripped off unexpectedly, checks may bounce and you may or may not have to pay the fees. If there is a huge dispute over the debt card, the bank has to make the decision either to credit your account and they take the loss, or not credit it and you take the loss. Debit cards don't offer protection for the cardholder to withhold payment on defective items or services like a credit card allows. Consider using a credit card for large purchases in case you are not happy with the product or service and need to withhold funds. Debit cards are very convenient, but use precautions to prevent them from being lost or stolen.