was the latest victim of credit card and debit-card fraud last
week, with hackers having stolen information on as many as 40
million cardholders. But as painful as the experience might be
for customers, it provides a useful lesson on being smart about
In the following video, Dan Caplinger, The Motley Fool's
director of investment planning, looks the different rules that
cover credit cards and debit cards and how the same fraud can
result in much different situations for credit card users
compared to holders of debit cards. Dan notes that with credit
cards, disputes happen
you pay any money to your card company, while debit-card disputes
involve having your bank return money that has already been taken
from your bank account. Moreover, laws covering fraud on debit
card are much less developed than credit card fraud laws, leaving
debit-card holders potentially at greater risk. Dan observes that
all take pains not to favor one set of cardholders over another,
and he passes on some guidance that those card companies have
given to their customers in light of the Target incident.
Can you profit from credit and debit cards?
Credit-card and debit-card fraud costs banks a lot of money
annually, but the best-managed banks have a better chance to
weathering the financial storms that they can cause. In
particular, the banking sector has one notable stand-out among
sea of mismanaged and dangerous peers, rising above as "
The Only Big Bank Built to Last
The Only Big Bank Built to Last." You can uncover the top pick
that Warren Buffett loves in The Motley Fool's
new report. It's free, so
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