What's the best secured debit card to own?
October 25, 2016 5:57 AM Subscribe
So many apps that I have on my cell phone require a credit card on file with them and I'm nervous about having my only credit card tied up to so many possible hack able sources. I wanted to get a Mastercard or Visa secured debit card to use in these instances. Low cost and good customer service are important.
1) Why do you want a debit card when fraud protection on a credit card is stronger
2) You can find a throwaway credit card that you just use online and pay off every month at zero fee. This will not impact your credit score or anything like that. Actually it'll make it slightly better in the long-run.
3) A prepaid debit card provider doesn't really have much of a business interest in helping you solve fraud issues you may have.
posted by JPD at 6:32 AM on October 25, 2016 [18 favorites]
2) You can find a throwaway credit card that you just use online and pay off every month at zero fee. This will not impact your credit score or anything like that. Actually it'll make it slightly better in the long-run.
3) A prepaid debit card provider doesn't really have much of a business interest in helping you solve fraud issues you may have.
posted by JPD at 6:32 AM on October 25, 2016 [18 favorites]
Agreed with JPD that any credit card will have far better fraud protection than a debit card. It's much better not to have that direct link to your checking account if you can. Also, if using a debit card, many places (especially gas stations, hotels, and car rentals) will charge a hefty holding fee. With a credit card, the maximum you are on the hook for is generally $50, and mine are really good about calling me anytime they suspect odd activity. I always get a call when making a big purchase like multiple plane tickets.
If you are set on this idea, the other way to go would be a prepaid debit card, which has the same drawbacks listed above minus the direct link to your checking. I've heard good things about the American Express Serve, though AmEx isn't accepted everywhere.
posted by veery at 6:52 AM on October 25, 2016
If you are set on this idea, the other way to go would be a prepaid debit card, which has the same drawbacks listed above minus the direct link to your checking. I've heard good things about the American Express Serve, though AmEx isn't accepted everywhere.
posted by veery at 6:52 AM on October 25, 2016
I think getting a second credit card purely to use for online applications is the way to go.
posted by rabbitrabbit at 6:52 AM on October 25, 2016
posted by rabbitrabbit at 6:52 AM on October 25, 2016
Seconding that you are much, much better off in just getting a second credit card for this. Go with whichever big-brand credit card comes up as best for your needs; they have very sophisticated fraud-prevention mechanisms and far better customer service than a prepaid secured card.
Prepaid secured cards are certainly a helpful thing for folks who cannot qualify for a "regular" credit card after bankruptcy or financial catastrophes, but are not actually a great option otherwise.
posted by desuetude at 6:54 AM on October 25, 2016
Prepaid secured cards are certainly a helpful thing for folks who cannot qualify for a "regular" credit card after bankruptcy or financial catastrophes, but are not actually a great option otherwise.
posted by desuetude at 6:54 AM on October 25, 2016
Best answer: Is your current card a BofA or Citi card by any chance? If so, you may be able to set up virtual card numbers. This lets you generate numbers that can only be used once, and/or up to a certain dollar limit, and/or for recurring charges with a single merchant. More info from Bank of America and Citi.
posted by mama casserole at 6:59 AM on October 25, 2016 [4 favorites]
posted by mama casserole at 6:59 AM on October 25, 2016 [4 favorites]
Privacy.com offers pretty much what you are asking for. You get a new card number for every transaction, and money is withdrawn from a funding source of your choice.
posted by rada at 7:06 AM on October 25, 2016 [5 favorites]
posted by rada at 7:06 AM on October 25, 2016 [5 favorites]
Credit cards are not a good choice for everyone. The average American is $15k in debt with them.
Please realize that suggesting credit cards as far superior to debit cards is 1) not particularly true, any good bank offering a Visa/MC branded card will protect you from fraud just as much and 2) doing your average American a disservice, and suggesting a product literally designed to draw them into debt.
Seconding: look at Privacy.com
posted by so fucking future at 8:32 AM on October 25, 2016 [3 favorites]
Please realize that suggesting credit cards as far superior to debit cards is 1) not particularly true, any good bank offering a Visa/MC branded card will protect you from fraud just as much and 2) doing your average American a disservice, and suggesting a product literally designed to draw them into debt.
Seconding: look at Privacy.com
posted by so fucking future at 8:32 AM on October 25, 2016 [3 favorites]
Please realize that suggesting credit cards as far superior to debit cards is 1) not particularly true, any good bank offering a Visa/MC branded card will protect you from fraud just as much
No, it won't. Here's why: when money is withdrawn from the account fraudulently, that money is gone until you manage to convince the bank that it was fraud. That could be weeks. Yes, the money will eventually wend its way back to you, but in the meantime, you have to do without. When I recently had my credit card number used fraudulently, I disputed it immediately, I didn't have to pay that amount while the investigation was paying, and eventually the charge went away. It was annoying to do the dispute, but it had zero impact on me financially. There are a lot of folks out there who would find it hard to "replace" money stolen from their bank account until the fraud investigation is done.
posted by praemunire at 8:44 AM on October 25, 2016 [15 favorites]
No, it won't. Here's why: when money is withdrawn from the account fraudulently, that money is gone until you manage to convince the bank that it was fraud. That could be weeks. Yes, the money will eventually wend its way back to you, but in the meantime, you have to do without. When I recently had my credit card number used fraudulently, I disputed it immediately, I didn't have to pay that amount while the investigation was paying, and eventually the charge went away. It was annoying to do the dispute, but it had zero impact on me financially. There are a lot of folks out there who would find it hard to "replace" money stolen from their bank account until the fraud investigation is done.
posted by praemunire at 8:44 AM on October 25, 2016 [15 favorites]
I haven't had a credit card since 2004. I've used a debit card exclusively since then. Contrary to praemunire's statement above, I've disputed fraudulent charges on my debit card and had them reversed immediately. This has only happened twice in twelve years. I also get phone calls when there's suspected funny business going on, just like others are claiming only happens with credit cards. My debit card is MC branded, and I have it tied to my principal checking account at a Big Gross Bank.
posted by late afternoon dreaming hotel at 9:42 AM on October 25, 2016 [4 favorites]
posted by late afternoon dreaming hotel at 9:42 AM on October 25, 2016 [4 favorites]
I've disputed fraudulent charges on my debit card and had them reversed immediately.
This is often true, but if the debit fraud reduces your balance to the point that other payments bounce before it's caught, you may still be left liable for returned check fees. The bank is likely to wave the fees they charged you for the negative balance, but if your rent check (or whatever) bounced, your landlord might not be willing to wave the fee.
posted by Candleman at 10:16 AM on October 25, 2016
This is often true, but if the debit fraud reduces your balance to the point that other payments bounce before it's caught, you may still be left liable for returned check fees. The bank is likely to wave the fees they charged you for the negative balance, but if your rent check (or whatever) bounced, your landlord might not be willing to wave the fee.
posted by Candleman at 10:16 AM on October 25, 2016
The bank is likely to wave the fees they charged you for the negative balance, but if your rent check (or whatever) bounced, your landlord might not be willing to wave the fee.
Yeah, this happened to me! I had to borrow money from my roommate and deposit it in cash so my automatic student loan and rent payments would go through. Everything was fine in the end but it was a tense day or two. If I hadn't noticed that the money was gone before the student loan payment was due I would have bounced a check with Sallie Mae, which is never a good idea.
For the OP: what about just a card with a low limit and a daily maximum?
posted by mskyle at 10:41 AM on October 25, 2016
Yeah, this happened to me! I had to borrow money from my roommate and deposit it in cash so my automatic student loan and rent payments would go through. Everything was fine in the end but it was a tense day or two. If I hadn't noticed that the money was gone before the student loan payment was due I would have bounced a check with Sallie Mae, which is never a good idea.
For the OP: what about just a card with a low limit and a daily maximum?
posted by mskyle at 10:41 AM on October 25, 2016
You can setup a free online Capital One 360 checking account. You could just keep $1 in it. The chip/PIN card that comes with the account is the best card I own. No fees anywhere for anything. No international fees. No ATM fees. Best exchange rate for me while I spend months at a time in Europe.
posted by humboldt32 at 11:46 AM on October 25, 2016 [1 favorite]
posted by humboldt32 at 11:46 AM on October 25, 2016 [1 favorite]
Response by poster: Thanks for all the good responses! I do have BofA credit card but thought I could only generate CC numbers for a one time transaction. The ability to make a number for recurring charges is what I need. Privacy.com looks good also.
posted by BillyAnne at 12:26 PM on October 25, 2016
posted by BillyAnne at 12:26 PM on October 25, 2016
This thread is closed to new comments.
Their website isn't fancy or even up to modern standards, but they're friendly on the phone and I haven't had one single problem with payments posting. There's no monthly fee, although there might have been an annual one. If so, it was less then $50.
posted by INFJ at 6:22 AM on October 25, 2016