Debit Cards

I personally use my debit card much more than my credit card. I like the idea of spending my money, opposed to charging it and having to pay for it later. However, I never really realized the continuous risks involved with using them, opposed to credit cards.

Debit cards are usually linked to your checking account. Therefore, when purchases are made, the money comes directly from that specific account, without dispute. It seems to replace the hassle of writing a check. Rather, you make the purchase, swipe, and the transaction is complete. Visa calls their debit card the "VISA Check Card" and Mastercard calls their's the "Mastermoney Card." Whoever the carrier, the debit cards function the same way.

Debit cards pose great risks, in terms of security. With checks, they require a photo ID, your license number, phone number, address, and signature. All you need to access the checking account associated with the debit card is their four-digit pin number. No questions are asked after that. And now, banks are coming out with a new debit card that does not even require a pin number! No signatures. No ID. Nothing. It seems that confidentiality for access to this account could be breached with four simple numbers, which would be entered electronically.

If I were an attacker, all I would have to do is stand behind someone close enough to see what numbers they select. If those four numbers hold the key to their checking accounts, obtaining those numbers would disclose all of their information on that account, not to mention all of the money in the account. Most receipts from debit card transactions contain the account numbers and sometimes the pin numbers. If I was an attacker, all I would have to do is watch out when people throw away receipts when leaving a store. I would then pretend I dropped something in the garbage, retrieve the receipt, go online and go shopping galore.

Clearly, the vulnerabilities of the card have been exhausted. It seems that newer technologies are making it easier and easier for black hat hackers. All they need is a receipt to drain your checking account?! That seems absurd. No photo ID. No signatures. Not even a pin number in some cases.

The value of a thin, plastic card carries the weight of an entire checking account. Because ID's and pin numbers can be stolen and altered, it seems like a difficult task to ensure the confidentiality of financial information. However, these threats will continue to exist as long as society uses cards to purchase goods, opposed to actual cash.

Because debit cards are this risky, I would definitely recommend using credit cards more often. If you lose your debit card or if someone hacks into your checking account, you lose your money and oftentimes have to go through extensive measures to retrieve that money from the bank. However, if you use your credit card, you are using the bank's money. That way, you can dispute the charges before you spend your own money. In the case that no wrongful charges have been charged, you could just pay the entire balance at the end of the month. Credit cards definitely seem like the better way to go.



http://www.pirg.org/consumer/banks/debit/fact.htm