7 TIPS for Dodging Debit Card Dangers

Debit cards seem like a great idea. They work just like a credit card but you don’t have to worry about paying a bill at the end of the month or carrying interest on purchases because the money comes right out of your checking account. But that same convenience can also end up being very costly and even leave you with a drained checking account. Here’s 7 tips on how to fix debit card dilemmas and avoid debit card dangers.

1. My friend told me he happened to check his bank balance, and only then realized a restaurant over-charged him $500 on his debit card!

Very scary! And that’s the problem. The moment that charge goes through, it zaps that amount right out of your checking account, even if it’s a mistake. If you’re counting each dollar, that could put in the red — and it’s not your fault.

2. What is the first thing you should do if there’s a incorrect withdrawal with your debit card?

First, get your proof lined up. When you pay with a debit card (and not a bad idea if you use a credit card) keep your receipts and instantly reconcile the amount charged with your statement or online banking account. If you got hit with an overcharge, it’s going to be a lot easier to prove if you’ve held on to your receipt.

3. Who do you call first? The bank, or the business that charged you the wrong amount?

Call the merchant first. Ask for the manager and explain the situation. Put them on notice there was an error. If they agree there was a mistake, they can refund your money. Problem: it may take several days for the money to go back into your account.

4. Several days? What if I need that money put back in my account right away? It wasn’t my fault I got overcharged!

That’s why you call the bank next.  Ask for a supervisor. Explain the situation and that you need to have it fixed ASAP. There’s stuff they can do to fix the error quickly, and to restore the money to your account.

5. What stuff?

The bank can do a conference call with you and the business. The bank listens to you agree to give the merchant permission to talk about your account. Then the bank asks the business for some secret codes right on your receipt that only the two know. It’s stuff like the exact time and date the charge went through. Once the merchant confirms it knows this inny info, the bank knows it’s not someone trying to pull a fast one. If the merchant confirms there was an overcharge, the bank can put that money back into your account in minutes.

6. Would this situation have been different if I paid with a credit card?

If you’re charged incorrectly with a credit card, your available balance may drop, but you can call the credit card company and put the item in dispute. Once this process starts and the credit card company’s investigation begins, the charge to your account is reversed.

7. Why am I at greater risk using a debit card in general?

The federal regulations that govern theft or errors for debit cards are different than the regs for credit cards. So make sure you know the rules — here’s a link to the Uncle Sam’s consumer protection agency, the Federal Trade Commission. And remember — if you report an unauthorized purchase, the bank could take 10 long days to investigate. You may get a refund. Or you could lose everything. 

Award-winning investigative reporter Hank Phillippi Ryan is on the air at Boston’s NBC affiliate where she has broken big stories for the past 22 years. She has won 24 Emmys as well as dozens of other regional, national and international honors for her work. (www.hankphillippiryan.com). Mary Schwager is a journalist with more than 16 years of experience and is the investigative producer at 7 News. She’s won more than two dozen awards for investigative, consumer and feature reporting and writing, including nine Emmy Awards, seven Edward R. Murrow Awards and three Associated Press honors. She was also a state licensed detective and performed criminal investigations on behalf of the Wisconsin Public Defender’s Office. Find more of Mary’s articles at Examiner.com. Ryan and Schwager can be contacted at hryan@whdh.com and mschwager@whdh.com.