I recently opened a new checking account with a bank that issued a Debit Mastercard with Paypass instead of a conventional ATM card. I understand that debit cards have a larger security risk because they can be used without a PIN number. The bank says that they will reimburse me for any fraudulent charges, but this doesn't include NSF charges, late payment penalties, or interest charges because of unauthorized transactions.
My bank has told me that they will charge me transaction fees when I use an ATM if I insist on having a conventional ATM card instead of the debit card. Do I have any way around these fees and risks aside from finding a new bank?
If you use a debit card and suffer from unauthorized activity, your bank will follow the requirements of Regulation E, or the more consumer favorable consumer rules under Visa or MasterCard if applicable. They will make you "whole" meaning that NSF fees, interest lost on your account, etc., will be repaid. It will be as though the fraudulent activity never happened. The downside is that it may take a month and a half for all this to happen. Most or all may be made available to you within ten business days, but some of the fees could be withheld.
If you are deemed negligent, you may also have some liability. This could be $50 or more, depending on the circumstances. Remember, always notify your bank immediately if you think there is a problem with your account.
These rules can apply to a debit card (MasterCard, Visa) and an ATM card. Again, the branded debit cards can offer more protections to encourage use.
You will have to decide which product offers the features you want at a cost you are willing to accept. Regardless of what you choose, keep your card safe, keep your PIN and account information private, check your statements or internet banking regularly, and report problems immediately.
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If you use a debit card and suffer from unauthorized activity, your bank will follow the requirements of Regulation E, or the more consumer favorable consumer rules under Visa or MasterCard if applicable. They will make you "whole" meaning that NSF fees, interest lost on your 