Apparently, debit cards will remain chipless and vulnerable

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Browser
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Apparently, debit cards will remain chipless and vulnerable

Post by Browser » Sat Oct 03, 2015 12:52 pm

I just checked with my credit union to see if they were sending a new chip and signature card to me. I was told that since it is a debit card, it will not be replaced with a chip and signature card. First I knew about this. The thing is, I have a high-interest checking account with them which requires that I use this card as a credit card 12 times per month to qualify for the interest. I also use it at ATMs to make cash withdrawals. What's wrong with this picture? There are lots of debit cards floating around. Why are they not required to use chip and signature, as are credit cards?
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Lee Saage
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Re: Apparently, debit cards will remain chipless and vulnerable

Post by Lee Saage » Sat Oct 03, 2015 12:58 pm

My Chase debit card is chipped.
Most of my money went to fast cars, fast living and good wine. The rest I just wasted.

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CABob
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Re: Apparently, debit cards will remain chipless and vulnerable

Post by CABob » Sat Oct 03, 2015 1:01 pm

It sounds to me as if it is a decision made by your credit union. I can't think of a valid reason why a debit card cannot be a chip card.
Bob

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dm200
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Re: Apparently, debit cards will remain chipless and vulnerable

Post by dm200 » Sat Oct 03, 2015 1:22 pm

Yes, currently that is a decision of the issuing financial institution for debit cards.

In the future, there will be the same requirement for debit cards as now in effect for credit cards.

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telemark
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Re: Apparently, debit cards will remain chipless and vulnerable

Post by telemark » Sat Oct 03, 2015 1:40 pm

I just got a chipped debit card in the mail from US Bank.

leonard
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Re: Apparently, debit cards will remain chipless and vulnerable

Post by leonard » Sat Oct 03, 2015 2:13 pm

Not sure what the vulnerability is you are seeing - your swipe card wasn't made any less secure by the existence of a new chip card. And, if you haven't had a problem with your existing debit card - your risk hasn't increased. There's no new risk here.
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Geologist
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Re: Apparently, debit cards will remain chipless and vulnerable

Post by Geologist » Sat Oct 03, 2015 9:30 pm

I've had a debit card with a chip from my credit union for more than a year. So you shouldn't generalize to all debit cards from what your credit union told you.

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arcticpineapplecorp.
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Re: Apparently, debit cards will remain chipless and vulnerable

Post by arcticpineapplecorp. » Sat Oct 03, 2015 9:57 pm

I think most credit unions will not have chip cards since they are exempt at the moment and it's an additional expense they don't need to incur. For that (and other) reason(s) they really should not be used since they offer less protection than a major credit card and you have more initial liability with them. Clark Howard calls debit cards "fake, piece of trash credit cards" because people think they're credit cards since you can use them as credit or debit. But in all honesty, you have more liability with them. If someone gets access to it (at a gas pump for instance with a "skimmer") they can reach right into your bank account and take your money out. With a major credit card, they're taking the credit card company's money, not yours. Just make sure to report any suspicious activity as soon as discovered.

Oh, and Clark Howard recently said gas pumps will be exempt from installing the new chip readers for another year. So beware of the skimmers at gas stations for another year!
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Coles
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Re: Apparently, debit cards will remain chipless and vulnerable

Post by Coles » Sat Oct 03, 2015 10:03 pm

Geologist wrote:I've had a debit card with a chip from my credit union for more than a year. So you shouldn't generalize to all debit cards from what your credit union told you.
[OT comment removed by admin LadyGeek]

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