No. of Recommendations: 0

You wrote, What NPR was referring to is that there's a legal restriction that credit card companies must credit back fraudulent charges if they're reported within 60 days of the statement being issued, while with debit cards the legal requirement is that they credit back fraudulent charges reported within 48 hours of your learning of them. However, Visa's policy seems to be more lenient than the law requires.

Actually, I believe the 48-hour limit applies to ultimate liability. If you meet the 48-hour deadline, your liability exposure is $50 by law. If you report within 30 days, your potential liability is $500.

I also believe that a credit card company must give you a temporary credit for the amount in dispute while they take up to 30 days to investigate. Banks are under no obligation to issue a credit, even with Visa's no liability policy. Also, I believe a bank has 45 days under law to investigate reported fraud during which time you may have to do without the money that was stolen.

Also, I would recommend reporting any fraudulent charges immediately, both by phone call and in writing, regardless of the card type. However, given Visa's current policy, it's unlikely that if you're on top of things you'll have a real problem with a Visa debit card.

The very real problem this poses is that your funds may go missing for a month or more and you may need them to pay bills. Bounced checks, late payments and other nasty surprises may cascade as a direct result of this once incident and that's not the bank's problem. That's not generally the case with a credit card.

What's more Visa can withdraw their protection at some future date with little or no notice. If that were to ever happen, I wonder how many people would be caught by it unaware? Removing the protections offered by credit cards would literally require an Act of Congress, so I imagine you would get plenty of fair warning.

- Joel
Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.