The undoubtedly growing use of international debit cards has been very evident over the passed years. It has knocked of the use of credit cards as the king of the electronic payment mountain. The numerous benefits of international debit cards cannot be denied, together with the very minimal expenses associated with their use. Risks however, should not be overlooked. Always remember that generally the greater the rewards the greater the risks. Following are detailed explanations of some risks associated with international debit cards and how to avoid them provided by the federal government itself.
International debit cards may offer some convenience. But international debit cards have more risks than PIN-based ATM cards. Since the risk of credit card fraud on the Internet is so high, we urge consumers to only use credit cards on the Internet - never use international debit cards. In addition to this greater legal liability protection with a credit card, you have greater legal protection if goods are defective or don't arrive, under the Fair Credit Billing Act, which applies to credit cards.
International debit cards make banks a lot of money. When you use the card like a credit card banks take a hefty fee from the merchant. When you use it with a PIN, like an ATM card, more and more banks are charging you a transaction fee of $0.25-$1. Other banks are charging a monthly card rental fee of $1-2/month. That adds up to $12-24/year, plus transaction fees. Of course, banks are hitting you with a POs fee in hopes you use the card with a signature-- so they can make more money from the merchant.
Blocking is also a problem with international debit cards. Some firms routinely block a card in advance for the estimated cost of a transaction that may not be completed for several days. It isn't a problem for most credit card customers, unless they are near their account limits. But if you buy ten dollars worth of gas with your international debit card, you may not know that the station may routinely block all transactions for $50-75, then doesn't un-block as you drive away- it waits until that evening, or worse, every few days to conduct a batch transaction. If you are close to your checking account limit - much more common than being close to a credit card limit - you could end up bouncing checks or be refused transactions by other merchants due to faulty blocks. Most banks do a poor job of informing consumers that they may bounce transactions due to overdrafts created by blocks. Of course, virtually no gas station explains their blocking policy, which presumes everyone drives an RV or tractor trailer truck, and is filling it up.
Finally, most banks don't ask for consumer consent. When ATM cards expire, they replace them with risky international debit cards. And, we are unaware of any bank that adequately explains the risks of international debit cards.
Lowering International Debit Card Risks
Never use a risky international debit card on the Internet. Only use a credit card for Internet transactions. In addition to greater legal liability protection with a credit card, you have greater legal protection if goods are defective or don't arrive.
Use an international debit card only with merchants you trust. It is also a good idea never to let it leave your sight it is one thing to watch a clerk swipe it right in front of you at the cash register and hand it back to you. It's another story when you hand it off to a potentially unscrupulous waiter or waitress who could have an illegal card skimmer in their pocket and copy your information after they walk away with it.
Just as you wouldn't use it on the Internet, don't use it to call infomercials off the television. If you have a dispute over double-billing or products that don't arrive from a sleazy info-merchant, remember - you'll be fighting to get your own money back, and that could take ten days or more of arguing with your bank.
Get the
2-GetCash international debit card now and enjoy all the great benefits without the hefty periodic and per transaction charges. Pay only for your card and nothing else.
