|
> In practice, all the fraud I've been victim of always fit within the card networks' dispute resolution rules. The only time I can think of this being necessary is airlines that go bust (where a card network dispute would technically succeed but fails because there's literally no money to claim back anymore). Does the dispute process have all disputed money be instantly returned to the account? With a credit card, you can simply turn off the auto payment system, and simply not pay the fraudulent part, and you still have your money in the bank account. With a debit card, in the US the banks typically have 10 business days to determine if there was fraud and give your money back. (If the investigation takes longer they return the money on the tenth business day pending the results of the investigation, and if they determine it was not fraud they will take the money back again.) And in the US many people life paycheck to paycheck with effectively zero savings. If their account is zeroed out due to fraud, Things can get expensive quick. For example, your rent payment is probably too large to be covered by banks overdraft protection, so you will likely get hit with three bounced check fees. of at least $25. One from you bank from the first attempt. Then a later re-presentment attempt will also fail, and you will get a second fee from your bank. Finally, you will get a bounced check fee from your landlord. Of course since your payment did not go through, you will likely end up with a late fee. etc. For other bills they could be small enough that you only get hit with overdraft fees, and not the rest. But if not, then things can snowball VERY quickly. And There could be other consequential damages like losses from being unable to get certain items while they are on sale, or even things like the stress of all of this preventing you from closing a sales deal, meaning you lose out on a substantial commission, etc. And while you can typically get the bank imposed fees waived due to the fraud, as long as they can determine that you would not have suffered those fees if the money had been there, the bank won't always cover all the the incidental and consequential damages. (The terms of service always exclude those). |