Debit cards have various levels of protection with online purchases and so it can be a good idea for debit card users to check what level of protection they have with their debit card, and if necessary to change their card to one that offers a higher level of protection.
Debit cards are very useful for online purchases as they use the same mechanisms as credit cards which mean they can be used for transactions with most online retailers. Unlike credit cards, debit cards do not build up a high interest balance that needs to be paid quickly, yet they do provide access to the convenience, variety and low prices that shopping online offers.
The worry that debit card users experience about shopping online has often been that the debit card is more vulnerable to having its details compromised. There are, however, various measures that have been put in to place to minimize this threat.
Online pins are identification codes that are either pin numbers or passwords that are needed to activate the card. An online pin will usually be entered on the bank servers and banks will often insist on this being inserted as a step in the payment process. This can be a very good way of cutting down debit card fraud, in the same way that chip and pin cuts down on debit card fraud in face-to-face transactions.
Many debit card providers have automatic transaction monitoring that will look over the transactions that are made on a debit card account, and, if there are unusual transactions they will either raise a query or stop the card. Such unusual transactions are either out of character with the card holder’s established spending patterns or are inherently suspicious, such as the bulk purchase of jewelry that could be easily resold. This is the reason why some people can find that their card is cut off when they go abroad.
Zero liability guarantees are guarantees provided by some debit card providers that no unauthorized transactions will be charged to the debit card holder. This relies on the debit card holder telling the provider about suspicious activity in good time and not co-operating in the unauthorized transaction, such as lending a debit card to a friend with the pin number.
