|
 |
Home >> Accounts >> ATM/Debit Cards
Can Debit Card be Used as Credit Card?
If I have a MasterCard debit card issued by a bank, I can use it as a credit card or a debit card, correct? If it is used as credit card (no PIN), does it afford the protections of the MasterCard fraud protections guarantees?
|
Untitled
|
 Your debit card can be used to access your deposit account based either on a signature validation or a Personal Identification Number (PIN) verification. If the signature validation is chosen, the purchase transaction is routed to your bank using the credit card system. If you used your PIN, the transaction is usually routed to your bank via the ATM/debit card networks. In either case, the card remains a debit card, and transaction gets posted to your checking account, not a credit card account.
If the signature-based option is used and the transaction is handled via the MasterCard system, the system's applicable fraud protections will apply. If the PIN option is used, MasterCard's fraud protections won't apply, but your bank may have its own fraud protection coverage. In either case, as a consumer you will have the fraud protections afforded by the federal Electronic Fund Transfer Act and Federal Reserve Regulation E, which limit your liability for unauthorized transactions. Under both the MasterCard rules and the federal law and regulation, you have to examine your bank transactions and notify your bank promptly to limit your liability.
Published on BankingQuestions.com 10/01/09
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
