Solid.

Should be ready to tap. If it isn't, that's non-compliant.

It depends on what you're talking about. In this case I'm talking more in the debit card sector. Banks aren't as favorable with debit cards as they are with credit card fraud protections, especially small credit unions who might not have the budget to have their own investigation teams. Some banks like Chase and BoA have great debit card protections, but they aren't all equal when it comes to debit cards vs. what's equal for credit cards.

Your liability for debit is limited to $50, except for after two business days, and then it goes up to $500, and then unlimited after 60 days. I think after two business days many banks will hold you liable for the amount up to $500. After all, losing a few customers probably doesn't matter to them - they'd rather just get their $465 back from the customer due to their carelessness than eat the cost. Think about how long it takes for a customer to earn a bank $465 from debit swipe fees with how much Durbin put a stranglehold on the amount banks/issuers can charge.

Yeah...no. Federal Law mandates the $50 maximum liability, but almost all banks will say to hell with the $50, as we have so many banking options and can easily move elsewhere. I know I would change if COF tried to hold me liable (after getting my money back).

As for banks making money, card processing fees are far from the only revenue source. They only have to keep a small percentage of your deposits as a reserve, but they can take the rest of the money and make some sweet interest by loaning it out.

Ummm, read up again.

https://www.consumer.ftc.gov/article...nd-debit-cards

Also, read here:

I understand that, but my point seems to have escaped you. I'm saying that legislation is different from practice. Most banks won't bother you about the $50/$500, even though they are legally permitted to hold you liable up to that amount.

You said federal law mandates $50 liability, which is not true. You're thinking of credit cards, not debit cards.

I think the law needs to be updated, but congress is too stupid to do so... They can't even pass a replacement for Dodd-Frank or come up with a healthcare solution. It shouldn't be that hard to take five minutes to officially cap all debit card fraud, including with a PIN to $50 maximum. In fact I think it should have been written as an amendment in the Dodd-Frank act while they scapped the EFTA.

...all of which shows why it is not prudent to use a debit card in lieu of a credit card. I do understand there are people who have lousy credit who have no choice or limited choice but other than that, I most heartily recommend you not use the "credit card" feature of a debit card. You will probably get your money back but why hassle about it?

I still think it needs to be changed. I talk up how great credit cards can be, but certain (and most) people seem to like the fact that the item is paid for once you use the card. Credit card debt is such a big problem in this country that the debit card protection laws should match credit card protections.

Some fun reading if you're curious: https://www.federalreserve.gov/board...l/cch/efta.pdf

If you don't want to read the whole thing, the table on page 13 goes into extreme detail as to one's maximum liability for debit card fraud. "Maximum" because as mentioned above, most banks and CUs don't bother. And if you still have the card in your possession, there's zero liability by law as long as you don't wait more than 60 days.

Page 12 also mentions that only the amount of time before reporting can be taken into consideration. That is, the usage of PIN is not justification of cardholder liability.

Based on that, I'm not really seeing the need for new or changed laws.

A lot of banks also market their zero liability, Wells Fargo called theirs WellsProtect, and Bank of America called theirs Total Security Protection., where Chase just simply called theirs "Zero Liability Protection"...However these aren't law, the banks just offered them. The law is $50

They can probably do that because the vast majority of fraud by far is CNP and counterfeit fraud, which they can't make the cardholder pay for anyway. Unless said cardholder procrastinates for more than two months, of course.

The federal reserve doesn't write laws. In fact it's not even part of any branch of government despite its name.

God forbid there should be thoroughness though, lets just leave the law outdated then.

The Electronic Funds Transfer Act is a law, though, as it passed both houses of Congress and was signed by the President at the time. It also gave the Federal Reserve authority to implement said law, as evidenced by the page from their website.

BTW the Fed's leadership is nominated by the President and confirmed by the Senate. I'm not sure how that doesn't make them part of the government. :confused:

I don't see how that's relevant. They also do have authority...