Cash or Credit?

Let’s face it, carrying cash, while a good budgeting strategy, is dangerous and passé. But how much risk are you putting yourself in if you carry only cards?

I have CID written on the back of all my plastic, but I rarely get asked for my ID, even at stores I don’t frequent. A debit card may have a spending limit of around $1,500 for pinned purchases and $2,500 for signature based transactions. For people with Overdraft Protection, that could put an account negative thousands before Overdraft fees if a debit card is stolen. When I was a call center employee for a local bank, I would get calls from people who hadn’t seen their debit card in weeks and not know why they were over drawn, let alone where the card was used. “Who’s PCC anyway?” they’d ask. (Answer: Stripes gas station and deli)

While Visa will guarantee returning funds on credit and debit purchases made fraudulently, the process for funds being returned can take up to 90 days. Many banks will give immediate credit for disputed transactions, for differing definitions of “immediate,” and only if their dispute process is followed exactly, and occasionally involves additional information requests which customers can’t provide, such as, “Who was using your card? Do you know who might have used your card?” If it turns out fraudulent transactions were made by a friend or family member, banks will ask permission to prosecute or remove the credit given to the account.

Of course, if your wallet is stolen and you’re carrying cash, you can’t call your bank and ask that they put a stop on it. 1-800-VISA-911 may not be local, but they have the number to your local bank and can shut down missing cards immediately while contacting your bank.