Quote:
Originally Posted by Pathy01
The cash is not necessarily gone until the dispute is resolved if you bank with an institution that immediately restores the funds to your account pending their investigation. Yes I understand that many banks do not do this so YMMV.
I don't believe anyone in this conversation has suggested using debit over credit for security. It is only suggested as an option to avoid the "convenience" fees applied to credit cards. Some are afraid of the risk they associate with using their debit card. My point is that making a debit tap to pay transaction at your BMW dealer carries an extremely low likelihood of potential fraud on that singular transaction along with the token authorization for that single transaction so it cannot be used to complete any additional transactions. Your actual bank account information is never transmitted to it can't be accessed.
The potential for fraud is there with debit, but it is not from making a payment to a reputable merchant using tap to pay.
Would I hand my debit card to a restaurant server? No.
Would I use it over the internet? No.
Would I use it at a BMW dealer to avoid a 3.75% convenience charge for using a credit card? Yes.
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Right, but the contention was that it was equally as safe as using credit which is true transaction-wise, functionally there's still a potential downside if that debited cash is withdrawn immediately and held during a dispute.
How a bank handles that with regards to a dispute may, as you say, differ. But my experience was that the cash was unavailable until the dispute was resolved, so I can only speak to that.
I would also probably use it at the dealership to avoid the fee, so we're in agreement there. But I shouldn't have to, because that cost of doing business shouldn't be passed to me.