Originally Posted by
mikesyr18
There's two different laws for credit and debit card transactions. Credit card transactions are by far the better of the two, but it seems like most people use debit cards. Debit cards may be covered reasonably well by the big banks like Chase, but from my experience, credit unions are more difficult to deal with in cases of fraud, often times slower to credit your account back, have a more difficult process (such as through paperwork instead of online), and aren't willing to overnight a card to you for free, if at all.
I think many people overestimate how much a bank protects their debit cards, and I think EMV is a good solution to help the issues that exist.
As long as you report it within 48 hours, debit cards have the same $50 maximum liability that credit cards do, plus the bank/CU has to give you a provisional credit within 10 business days while they investigate. (
More info.) Now you may have to threaten to file a complaint with the CFPB or another agency to get a bank to comply but that's a different subject.
Anyway, the "use credit cards instead of debit cards" advice stems from the fact that your own money's gone for the (up to) 10 business days it takes to get the provisional credit. For people who live paycheck to paycheck, that can be a serious problem if bills are coming due.