How to convince my dad that debit cards are safe to use?

sciencechick: How to convince my dad that debit cards are safe to use?
I constantly fight with my dad about the benefits of debit cards. He insists that you have absolutely NO protection if someone steals your debit card, but with a credit card you don’t have to pay. From my understanding, they have changed this and debit cards are safer to use now, even if they aren’t as good as credit cards. What kind of protection is there for debit cards now?

Answers and Views:

Answer by Miztery
I recently found a transaction on my debit card that I didn’t make. It was only for $ 10 but still it was enough to make me scared. I contacted my bank who cancelled my debit card, issued me a new one and made me file a claim. Within a month I got my $ 10 back. There is protection but you have to keep track of your records.

Answer by scottsmylie
I think the most you can be out by law is $ 500.00. Most banks will cover 100% though. The problem comes when you bank account gets overdrafted once it is stolen and it can take awhile for the bank fraud department to straighten things out. The best thing is to have a reserve line of credit or another bank account somewhere just incase this happens.

Answer by rtfm
Check with your individual bank. Their Web site will certainly have all their policies spelled out in detail, and you can show your dad exactly what it says there.

For example, here’s what my credit union says about their debit/ATM cards:

“My Liability for Unauthorized Transactions and Advisability of Prompt Reporting: I must tell you AT ONCE if I believe my ATM Card, Check Card, or PIN has been lost or stolen. Telephoning is the most effective way of keeping my potential loss to a minimum. A written notification to you must follow my telephone call. If I do not properly notify you, I could lose all the money in my account (plus my maximum Line(s) of Credit). However, if I believe my ATM Card, Check Card, or PIN has been lost or stolen, and I tell you within two (2) business days after I learn of the loss or theft, I can lose no more than $ 50.00 if someone used my ATM Card, Check Card, or PIN without my authorization.”

Answer by Kevin C
Debit cards have almost exactly the same protections as credit cards. In addition, study after study has shown the people with credit cards, even those that pay them off every month, spend more and save less than those without credit cards. It is an extremely financially sound decision to not have a credit card.