I just read a thread where the comments heavily suggested OP use a credit card when they travel again so that it would be easier to dispute a fraudulent charge. What makes a dispute through your bank less successful?
In: 1228
Credit cards are a huge target, since many people have credit limits between $1500 and $10K or more. Credit companies know that, expect fraud to happen, are actively looking for it, and have whole departments dedicated to fraud prevention and prosecution. If you’re defrauded chances are the CC company will know before you do.
On the other hand *most* people living paycheck to paycheck have bank accounts that barely cover this month’s expenses, making it a poor target for fraudsters. The bank therefore assumes that a) you are in control of your bank card and b) any losses will not be a huge burden in the long run. They’ll gladly offer you a loan at prime+1 to pay off the loss. Banks do follow up banking mistakes and if the bank is hit with fraud your accounts are insured up to $250,000. If you have savings more than a 1/4 million, split it up between banks 🙂
Latest Answers