The Consumer Action Handbook

16
Preventing
Credit and
Debit/Check
Card Fraud
● goods or services charged
to your account but not
received or not provided as
promised; and
● charges for which you
request an explanation or
written proof of purchase.
Using a Debit or Check
Card
Using an Automated Teller
Machine (ATM) or debit card
and a personal identification
number (PIN), consumers can
withdraw cash, make deposits,
or transfer funds between
accounts and pay for retail purchases.
Although a debit card
looks like a credit card, the
money for the purchase is
transferred immediately
from your bank account to
the store’s account. Some
ATMs charge a fee if you are
not a member of their network
or are making a transaction at a
remote location. ATMs must
disclose the fee on the terminal
screen or on a sign next to the
screen. Purchases made with a
debit card are handled in one of
two ways: you enter your personal
identification number or
you sign for the purchase. Ask
● Sign cards when they arrive, so no one can forge your signature
on the cards and use them.
● Keep a record of your card numbers and expiration dates and the
phone number of the card issuer in a safe place. If your card is
stolen or missing, notify the card company immediately.
● Don't give your credit card number over the phone to unfamiliar
companies or to people who say they need it to "verify" your
identity in order to give you a prize.
● Destroy carbons and incorrect charge slips.
● Draw a line through blank spaces on charge slips. Do not sign a
blank charge slip.
● Keep copies of all sales slips. Open credit card bills promptly
and compare the sales slips with the charges on your bill.
● Report billing errors and unauthorized charges to your credit
card company right away.
for a debit card that must be
used with a PIN to make it
harder for thieves to use your
lost or stolen cards or
account numbers. Keep your
PIN a secret. Don’t write your
PIN on the card or on a slip of
paper kept with your card. Take
your ATM receipt after completing
a transaction.
Reconcile ATM receipts with
bank statements promptly.
When you use a debit card
for a point-of-sale purchase,
these purchases will be
shown on your periodic
statement from your bank
account. If there is an error on
your account, contact the issuer
of the card (for example, the oil
company) at the address or
phone number the company provided.
When you use an electronic
funds transfer, federal
law does not give you the right
to stop payment. You must
resolve the problem with the
seller. Stored-value cards
contain cash value stored electronically
on the card itself.
Stored-value cards and the
transactions you make using
them may not be covered by the
Electronic Funds Transfer Act,
which means you may not be
covered for loss or misuse of
the card.
Protect Your Credit and
Debit/Check Card Rights
● Write to the creditor or
card issuer within 60 days
after the first bill containing
the disputed
charge is mailed to you.
(Even if more than 60 days
have passed since you were
billed for the item, you still
might be able to dispute the
charge if you only recently
found out about the problem.)
● Send your letter to the
address provided on the
bill; do not send the letter
with your payment.
● Be specific. In your letter,
give your name and account
number, the date and
amount of the charge disputed,
and a complete
explanation of why you are
disputing the charge.
● To be sure your letter is
received, and so you will
have a record, you might
wish to send it by certified
mail, with a return receipt
requested.