Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: $Revision: 1.6.2.16 $; site ISM780.UUCP Path: utzoo!linus!decvax!yale!ISM780!bruce From: bruce@ISM780.UUCP Newsgroups: net.invest Subject: Re: Re: M-L CMA info request Message-ID: <29400002@ISM780.UUCP> Date: Wed, 16-Oct-85 15:28:00 EDT Article-I.D.: ISM780.29400002 Posted: Wed Oct 16 15:28:00 1985 Date-Received: Sun, 20-Oct-85 08:42:56 EDT References: <1723@akgua.UUCP> Lines: 66 Nf-ID: #R:akgua:-172300:ISM780:29400002:000:3843 Nf-From: ISM780!bruce Oct 16 15:28:00 1985 >> (3) a VISA card that I never get a bill from (it's a debit card >> and shows up on the very clear and concise monthly statement); > Yes, it may seem convenient to use a debit card EXCEPT: > debit cards are like cash. If they are lost or stolen you are liable > for up to $500.00. With a credit card the maximum liability is $50.00. Unless Regulation E (aka, The Electronic Funds Transfer Act) has changed dramatically since the last time I looked at it three years ago, you're incorrect about the liability limit and whether it's a credit card or a debit card. I seriously doubt whether the CMA Vist card would be considered as a debit card if I use it to charge a purchase and sign a credit card voucher. I don't have a M-L CMA account so I can't be 100% sure, but under the terms laid out under Reg E it sounds like it's a combined credit card and debit card with a pre-authorized transfer to pay off the credit line on a regular basis. As such, the card-holder gets to choose which half of the card is being used at the time it's used. (When I worked at First Interstat Bank, we used to call them "two-sided cards" and at one time plained to print the Mastercharge or Visa logo on one side and the debit card logo on the other side; this idea got dropped because at that time Visa and Mastercharge had very restrictive rules about what was allowed to be printed on the cards). Even if it is a debit card, Reg E says that if you promptly report the loss of the card then you're only liable for the first $50 charged. You're only liable up to $500 only if you lose the card and fail to report the loss within 2 days, or if there's an unauthorized transaction on your statement and you fail to report it within 60 days. (Note: they're supposed to make allowances for extenuating circumstances such as being stuch in the middle of nowhere without a phone or post office handy). For those of you that do have CMA Visa accounts (I don't), I suggest that if you ever lose the card that you immediately notify M-L by the quickest means possible of the loss of the card and also demand that they cancel the pre-authorized transfer from your CMA account to the Visa credit line. Although they might claim that they have no means to immediately cancel the pre-authorized transfer feature, just get it on the record that you made the request. You might also want to close that account and open a new account and transfer your money to it so that you get a new card with a new account number and a new identificaton code. You're only liable for the $50 if it gets spent before you notify M-L. Your best bet is to send a certified letter or a telegram so that you have a record of the exact time you sent them notification (it doesn't matter when they receive it, the clock stops at the point you transmit the notice). >So you have to protect your debit card expecially well from theft. I would do the same for my credit cards especially if one lives off of their credit card as so many yuppies seem to do. The danger is that your CMA funds may be unavailable for two business days until the problems are resolved and your account is re-credited. I don't know how quickly credit card errors must be resolved, but it's probably more than two days. > You also lose the valuable intervention that the bank can do on your > behalf when the goods you purchase are "defective". With a credit card > you have more consumer protection; the bank can intervene on your > behalf. You lose this with a debit card. This would be true if the CMA Visa card were in fact a debit card, but it's not. Bruce Adler {sdcrdcf,ucla-cs,vortex}!ism780!bruce INTERACTIVE Systems Corp. decvax!yale-co!ima!bruce ------------------------------------------------------------------------ Never explain. Never make promises. Split before dawn.