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  • FIRST POST
    Lurker
    Purchase protection with debit card?
    • #1
    • 7th Jul 05, 9:03 PM
    Purchase protection with debit card? 7th Jul 05 at 9:03 PM
    Apologies if this isn't the right place to post, but....

    I am intending to make an approx £350 purchase to a shop in the USA.
    They accept credit cards, cheques and paypal but have no online payment system.

    I don't have a Paypal account or credit card, but do have a Delta/visa debit card thingie with my current account.

    Could anyone advise about the safest way to protect my prospective purchase? From looking at paypal, I can set up a basic account and transfer the funds for free, but if I don't receive the goods I'm not protected by them (USA customers only, thanks a lot.)
    http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/ua/policy_guarantee-outside

    They've also got something called Paypal buyer protection, but that only applies to Ebay purchases, which this isn't.

    I know that I can use my debit card like a credit card online and make purchases, but I don't know whether I get the purchase protection that credit cards give. The only 'virtual' purchases I've made previously have been with well known retailers such as Amazon and trainline etc. Also, in this instance I'm not doing an online payment but will be telling the guy in the shop my card details over the phone, unless I can find a more secure way of doing it. I've done all I can think of to minimise the risk and think the shop is a genuine one (been around since 1979, has a real address and phone number, been mentioned in the local newspaper (in a good way, space filling rather than as a fraud expose!) etc.
    Does anyone have any advice? (I've been turned down for a credit card recently so until I find out why that's not an option at the moment).

    Any help appreciated.
Page 1
  • djohn2002uk
    • #2
    • 7th Jul 05, 11:30 PM
    • #2
    • 7th Jul 05, 11:30 PM
    No purchase protection with a debit card except maybe in the case of fraud.
    • derrick
    • By derrick 8th Jul 05, 2:42 PM
    • 6,709 Posts
    • 2,186 Thanks
    derrick
    • #3
    • 8th Jul 05, 2:42 PM
    • #3
    • 8th Jul 05, 2:42 PM
    No purchase protection with a debit card except maybe in the case of fraud.
    by djohn2002uk
    Not quite true, if your debit card has the Visa logo then you have the same protection under the Visa umbrella,,SEE HERE
    Don`t steal - the Government doesn`t like the competition


  • pin
    • #4
    • 8th Jul 05, 2:52 PM
    • #4
    • 8th Jul 05, 2:52 PM
    Not quite true, if your debit card has the Visa logo then you have the same protection under the Visa umbrella,,SEE HERE
    by derrick
    Will this apply to foreign purchases?

    To the OP, best bet is to contact your bank (i.e. the bank / building soc that issued you with the debit card) and ask them to see if you are protected for a foreign purchase with your debit card.
    • derrick
    • By derrick 8th Jul 05, 2:56 PM
    • 6,709 Posts
    • 2,186 Thanks
    derrick
    • #5
    • 8th Jul 05, 2:56 PM
    • #5
    • 8th Jul 05, 2:56 PM
    Will this apply to foreign purchases?

    To the OP, best bet is to contact your bank (i.e. the bank / building soc that issued you with the debit card) and ask them to see if you are protected for a foreign purchase with your debit card.
    by pin
    It will be the same as a Visa CC and that seems a hit and miss affair at the moment, although I think the EU is making it mandatory accross the EU
    Don`t steal - the Government doesn`t like the competition


  • pin
    • #6
    • 8th Jul 05, 3:12 PM
    • #6
    • 8th Jul 05, 3:12 PM
    It will be the same as a Visa CC and that seems a hit and miss affair at the moment, although I think the EU is making it mandatory accross the EU
    by derrick
    Cheers. Do you have any more informaiton on the last bit you said, the bit about the EU trying to make protection mandatory?
    • derrick
    • By derrick 8th Jul 05, 3:16 PM
    • 6,709 Posts
    • 2,186 Thanks
    derrick
    • #7
    • 8th Jul 05, 3:16 PM
    • #7
    • 8th Jul 05, 3:16 PM
    Cheers. Do you have any more informaiton on the last bit you said, the bit about the EU trying to make protection mandatory?
    by pin
    No afraid not, but it will be out there somewhere
    Don`t steal - the Government doesn`t like the competition


  • djohn2002uk
    • #8
    • 9th Jul 05, 12:45 PM
    • #8
    • 9th Jul 05, 12:45 PM
    Not quite true, if your debit card has the Visa logo then you have the same protection under the Visa umbrella,,SEE HERE
    by derrick
    That is good to know but I was thinking more along the lines of "Credit Cards" and the issuers being "Jointly and Severally"(think that's the term) responsible. As quoted below.

    The Consumer Credit Act gives consumers a wide range of rights against companies who provide credit, for example, the right to look at any credit file; a 'cooling off period' of 5 days when people can cancel any credit agreement signed at home; the right to pay off credit early; limited liability or sometimes no liability when a credit card is stolen or lost. The Act also lays down conditions and procedures which credit companies have to follow when they advertise or sell credit. These are backed up by criminal sanctions.

    Section 75 of the Act gives people the right to their money back from credit card companies if they use their card to buy something which turns out to be faulty. It only applies to goods worth more than £100 and less than £30,000, and it does not apply to debit, charge cards, bank loans or certain shop cards.

    But what it does mean is that if you use a credit card to purchase something that breaches laws like the Sale of Goods Acts, you can get your money back from the credit company instead of from the trader. This can be extremely useful if the trader has gone out of business.

    One of the main problems with the Act is that it does not apply to British credit cards used or to transactions over the internet with non-UK registered sites.

    Most credit card companies, while disputing liability, will pay out if someone loses money because of fraud or unauthorised use. Some will pay out if foreign goods bought on credit turn out to be faulty. But they insist that the consumer must try and sort the matter out with the trader first.


    The red paragraphs are highlighted by me.
    • derrick
    • By derrick 9th Jul 05, 2:07 PM
    • 6,709 Posts
    • 2,186 Thanks
    derrick
    • #9
    • 9th Jul 05, 2:07 PM
    • #9
    • 9th Jul 05, 2:07 PM
    Yes but as I said, if the debit card has a Visa logo then Visa's T&C will bring it under that umbrella and therefore will cover it as if it was a CC
    Don`t steal - the Government doesn`t like the competition


  • djohn2002uk
    Section 75 of the Act gives people the right to their money back from credit card companies if they use their card to buy something which turns out to be faulty. It only applies to goods worth more than £100 and less than £30,000, and it does not apply to debit, charge cards, bank loans or certain shop cards.

    Well, seems to me someones wrong.
    I certainly wouldn't risk a Debit Card for purchases online, that's precisely the reason I got a Credit Card.
    • derrick
    • By derrick 9th Jul 05, 3:24 PM
    • 6,709 Posts
    • 2,186 Thanks
    derrick
    You are right re the Consumer Credit Act, that is legislation, however Visa give the same rights under their T&C's to the debit cards with their logo, this is not legislation, just Visa giving (voluntarily) extra rights.
    Don`t steal - the Government doesn`t like the competition


  • dave c
    going on holiday to turkey what is the best way to take money,in t/c sterling or euros.
    • M Thomson
    • By M Thomson 9th Jul 05, 11:21 PM
    • 1,568 Posts
    • 494 Thanks
    M Thomson
    You are right re the Consumer Credit Act, that is legislation, however Visa give the same rights under their T&C's to the debit cards with their logo, this is not legislation, just Visa giving (voluntarily) extra rights.
    by derrick
    Visa may give you some protection for Debit Cards, but I still don't think it is as good as the Section 75 you get with credit cards.
  • djott
    Visa Debit Chargeback Scheme
    Hi,

    You do have rights if you purchased via a visa debit card under a scheme called the Visa Debit Chargeback scheme which all banks that issue visa debit cards must comply with.

    You can claim money back if the goods you've bought are damaged or the service or product is not delivered, and there is no limit on what you can claim for. You do have to claim within 120 days of the date you expected the goods to be delivered or the firm going bust.

    The Visa Debit chargeback scheme is not legally binding, so you don't have any legal redress if you are unhappy. So you do get better protection using a credit card as the key difference is that when you claim on a credit card under Section 75 of the Consumer Credit Act, the credit card company is legally liable.

    Check out this link from the BBC's Working Lunch programme that was updated today due to the recent XL holiday company collapse. This is where I got all the above information and it talks about Maestro cards as well!!

    http://news.bbc.co.uk/1/hi/programmes/working_lunch/7593369.stm

    Hope this clears things up a bit, and I am about to use the above information to see if I can get my money back on some flights I booked through XL.
    • soolin
    • By soolin 12th Sep 08, 2:57 PM
    • 56,812 Posts
    • 40,012 Thanks
    soolin
    Since this thread dates from 2005 I would think the OP has long gone.

    Djott, there is a thread on the holidays board about protection after the collapse of XL, if you take a look it should answer any questions that you may have, good luck with getting your money back.
    I'm the Board Guide for the Ebay Board , Charities Board , Dosh & Disability , Up Your Income and the Local MoneySaving-England board which means I'm a volunteer to help the boards run smoothly, and I can move posts there. However, do remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com
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  • zinnycats
    debit card protection
    so if the debit card has a visa logo and something has been stolen which was brought on it, has that got the same cover,?
    Tracy
    • jonesMUFCforever
    • By jonesMUFCforever 12th Sep 08, 8:16 PM
    • 22,370 Posts
    • 9,864 Thanks
    jonesMUFCforever
    Visa is just a commercial company - an umbrella where the banks systems can talk to each other.
    Visa can say what it likes but cannot overrule any sovereign state's legislation.
    What goes around - comes around
    give lots and you will always receive lots
  • starchild358
    Refund for debit card payment
    I made a payment to a company in July 2010 that went into liquidation soon after I made the payment.
    Both the company/liquidators and the bank said that I wouldn't be able to get a refund as I had used a debit card. Needless to say I wasn't impressed. My debit card has got the Visa logo on it, so I came to Martins website and saw the previous threads on this subject. I filled in the template letter and sent it into HSBC on 29th July 2010 then waited for a reply. No reply.On the 23rd August I filled in and printed off the template letter again with the relevant proof of my payment and went and handed it into the bank manager at HSBC, she opened it and read it and told me that she would forward it to the relevant office. On 20th Sept 2010 I received a letter/form from the bank asking for proof of correspondence/ communication with company about a possible refund and proof of purchase etc. I sent back the information they requested on the 27th Sept 2010 and by the 1st Oct 2010 the full refund of £182.13 was in my bank account.
    SO I'M REALLY GRATEFUL FOR ALL THE POSTS HERE AND THIS WEBSITE AND RECOMMEND IT TO ALL THE PEOPLE THAT I KNOW
    Many Thanks
  • buttonhastoast
    Type of transaction?
    I made a payment to a company in July 2010 that went into liquidation soon after I made the payment.
    Both the company/liquidators and the bank said that I wouldn't be able to get a refund as I had used a debit card. Needless to say I wasn't impressed. My debit card has got the Visa logo on it, so I came to Martins website and saw the previous threads on this subject. I filled in the template letter and sent it into HSBC on 29th July 2010 then waited for a reply. No reply.On the 23rd August I filled in and printed off the template letter again with the relevant proof of my payment and went and handed it into the bank manager at HSBC, she opened it and read it and told me that she would forward it to the relevant office. On 20th Sept 2010 I received a letter/form from the bank asking for proof of correspondence/ communication with company about a possible refund and proof of purchase etc. I sent back the information they requested on the 27th Sept 2010 and by the 1st Oct 2010 the full refund of £182.13 was in my bank account.
    SO I'M REALLY GRATEFUL FOR ALL THE POSTS HERE AND THIS WEBSITE AND RECOMMEND IT TO ALL THE PEOPLE THAT I KNOW
    Many Thanks
    Originally posted by starchild358
    Hi there Starchild,
    great result for you! If it's okay to ask, was it; an online transaction, EU or US based vendor?
  • ZacColbert
    Hi people, i use my prepaid mastercard for all online purchases because it comes with purchase protection for internet transactions, well worth looking into if that's what you're after.
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