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Banks don't typically refund the money from debit card transactions at an ATM that require a PIN. I've actually never heard of banks giving free money away to people who tell others their ATM pin number. Seems like a good way to make money if true.
Banks don't typically refund the money from debit card transactions at an ATM that require a PIN. I've actually never heard of banks giving free money away to people who tell others their ATM pin number. Seems like a good way to make money if true.
http://www.wdfi.org/ymm/brochures/credit/check_cards.asp
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Debit Cards
The process is different for debit cards. If you report your debit card lost or stolen before the card is fraudulently used to make purchases or cash advances; the card issuer cannot hold you responsible for the fraudulent use. If the card is used by the thief before you report it missing, but you reported the card missing within two days of discovering the card missing, your liability is limited to the amount of the fraudulent withdrawals or $50, whichever is less. If you do not report the card missing within two days, your liability rises to the amount of the fraudulent withdrawals or $500, whichever is less. If you don't report the card missing within 60 days of receiving your first account statement that showed a fraudulent withdrawal, you can be liable for all withdrawals. That means you could lose everything in your account in addition to the unused portion of any line of credit that was established to cover overdrafts. Regardless of when you report the card lost or stolen, you cannot be held liable for any unauthorized withdrawals made after you reported the card missing.
To encourage the use of debit cards some financial institutions may have policies that provide more protection against unauthorized use than what is required by law. For instance, an organization may extend the length of time the customer has to report a stolen card or may state it will not hold customers liable for any unauthorized withdrawals. It is important to fully understand these policies because they may not be as good as they first appear. For instance, an organization may have a "no liability policy," however; the policy may only apply if the thief uses the card with that organization's network.
The process is different for debit cards. If you report your debit card lost or stolen before the card is fraudulently used to make purchases or cash advances; the card issuer cannot hold you responsible for the fraudulent use. If the card is used by the thief before you report it missing, but you reported the card missing within two days of discovering the card missing, your liability is limited to the amount of the fraudulent withdrawals or $50, whichever is less. If you do not report the card missing within two days, your liability rises to the amount of the fraudulent withdrawals or $500, whichever is less. If you don't report the card missing within 60 days of receiving your first account statement that showed a fraudulent withdrawal, you can be liable for all withdrawals. That means you could lose everything in your account in addition to the unused portion of any line of credit that was established to cover overdrafts. Regardless of when you report the card lost or stolen, you cannot be held liable for any unauthorized withdrawals made after you reported the card missing.
To encourage the use of debit cards some financial institutions may have policies that provide more protection against unauthorized use than what is required by law. For instance, an organization may extend the length of time the customer has to report a stolen card or may state it will not hold customers liable for any unauthorized withdrawals. It is important to fully understand these policies because they may not be as good as they first appear. For instance, an organization may have a "no liability policy," however; the policy may only apply if the thief uses the card with that organization's network.
You are absolutely not held liable for having your checking account wiped out at knifepoint as long as you report what occured. And no, it's not a good way to make money since if you try to do this with your friend one of you is going to be on camera at the ATM. However, they also don't hold you liable for online purchases, just make sure you aren't buying something that can be traced back to you if you want to take the extremely unwise attempt to scam this way.
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What you are describing is insurance. I'm sure that if enough people want this kind of service somebody will be willing to start a business that provides it. Don't expect that service to be free, however.
My checking account is free, I'm not paying for any insurance on it.
So it sounds like this system has some serious security kinks that need to be worked out, I'm not sure why I should be held liable if funds are stolen with this device but not with my debit card.
