Credit cards for Attorneys with LPAs

sallypoo

So Northwalesd & born_again, you are happy using debit cards for online purchases?  I guess that is my concern.  I've heard so many radio discussions about the inherent risk that I have presumed it was an issue.... You are suggesting that this is not the case?  Thanks H

sallypoo

Vortigern said:

@sallypoo I'm in a similar position. LPA registered with Halifax, who allow me online access to my elderly relative's accounts, a cheque book and a debit card for purchases. It's not a problem.

We have been offered a cheque book, not that I can see Ocado or Amazon accepting a cheque!  However it seems most on here are happy using a debit card.... 

This is the kind of article I've seen which is putting me off using a debit card "debit cards should not be used to pay for online transactions; a credit card is always safer for e-commerce. You're not as protected against fraud when you use a debit card, and disputes with those cards can be difficult to resolve."  

eskbanker

It's true that credit cards offer section 75 protection over and above the chargeback scheme that applies equally to credit and debit cards, but the main differentiator for most is that in the event of unauthorised transactions, fraud, etc, it's your own money that's being spent with a debit card but the bank's when using a credit card, which can affect cashflow significantly while such issues are resolved.  None of that makes credit cards inherently safer than debit cards as such though....

northwalesd

sallypoo said:

So Northwalesd & born_again, you are happy using debit cards for online purchases?  I guess that is my concern.  I've heard so many radio discussions about the inherent risk that I have presumed it was an issue.... You are suggesting that this is not the case?  Thanks H

I've been using both debit and credit cards for online purchases for years, without any major issues, and will happily continue to do so. As Eskbanker says, if a debit card is compromised (and I wouldn't suggest they could be compromised any more easily than a credit card) it's the money in the account that's being spent, and would have to be reclaimed, rather than the available credit limit on the credit card.
At the other extreme, my sister-in-law won't do any online purchasing at all, she's terrified she'll be scammed. I think I should buy her a tinfoil hat for her birthday 

born_again

northwalesd said:

I've been using both debit and credit cards for online purchases for years, without any major issues, and will happily continue to do so. As Eskbanker says, if a debit card is compromised (and I wouldn't suggest they could be compromised any more easily than a credit card) it's the money in the account that's being spent, and would have to be reclaimed, rather than the available credit limit on the credit card.

You have to remember PSD (Payment Services Directive) That means any online fraud will be refunded same day, be that a debit or credit card. The only type of fraud that a refund can really be withheld is where your PIN is used. Same goes for both Debit & credit cards. But there has to be a good reason not to refund a customer. 
Even though I have credit cards, I still tend to use debit cards or PayPal for online purchases. Credit card is used far more for in person purchases due to cashback.
40+ years banking and never a hint of anything untoward on bank acc. Only 1 fraud on Credit Card.

coachman12

The posts are now seeming to wander off topic. The Banks, in spite of forum members who revere them , are notoriously awkward (towards many people, including attorneys who are doing their best to help someone who is ill or elderly by operating LPA (see, for example)
  https://www.moneywise.co.uk/news/2018-07-23%E2%80%8C%E2%80%8C/power-attorney-blocked-major-banks
My advice is to use the cheque book and debit card----you really have no need to worry about the safety of debit cards as opposed to credit cards. Good luck, Sally.

jonesMUFCforever

OP if you really that worried about using a debit card online - then open a credit card in YOUR name and only use it to purchase goods for your relative. Then keep all receipts with the statements and pay from the relative's account. That way you could prove what the spending was for if you get any aggro from other relatives.

db2016

your getting confused im afraid OP - credit cards are good for protection yes, but even then its over £30 and upto £30000 i think?
but debit cards ALSO have protection in form of chargeback.
yes people have problems, but theres also hundreds of millions of accounts in use, so the risk is small. and if there is a risk.. yes it will be a headache to sort but its no more riskier than someone pick pocketing a card off you etc. im sure you get the point.
always better to use the BALANCE of funds the family member has rather than credit. not saying you would, but i imagine banks would think "she could potentially run up £1000s on credit in the family members name" - least with the current bank account you can only spend whats there (on behalf of the relative).

born_again

db2016 said:

your getting confused im afraid OP - credit cards are good for protection yes, but even then its over £30 and upto £30000 i think?

Assuming you mean S75 then it's £100 to £30K 
But both Credit & debit cards have the same chargeback rights.