Scared of Scams? Buy with Credit Cards.
Jet setters beware: those crystalline waters you dream of are often swimming with predatory scammers. And travelers are their prey of choice.
Why have travel scams become so popular? The payment terms have a lot to do with it. Scammers can offer properties, accommodations, and special activities that require payment in advance. And since anyone can make a professional-looking web site that accepts online payments, many vacationers have parted with their money only to find themselves stranded in paradise.
What can a traveler do to protect themselves? Pay with a credit card. Never use your debit card to purchase travel deals. Debit cards don’t have the same chargeback protection that credit cards do. If you buy with your debit card, your money is simply gone – whether or not the seller delivered the services they agreed to deliver. By using a credit card, you ensure that you won’t have to pay for empty promises.
One word of caution: chargebacks don’t protect you against shoddiness. Even if those 5-star accommodations turn out to be less than stellar, you’re still obligated to pay for them.
Greg Patrick said,
August 4, 2008 @ 6:39 am
In the U.S. debit cards do have protection. They are protected by regulation E, Efta and Mastercard and/or Visa zero liability policy. A scam is covered.
Some experts say you can lose all your money in your account. You could do that with a credit card. You just have to report the debit card lost or stolen faster.
For debit card with 2 business days the loss is $50.00
2 to 60 business days the loss is $500.00
60 or more business days all the money plus any overdraft.
Both MasterCard and Visa has extended there zero liability to their debit cards. If you need to claim this. You will need to request a special form from your bank. This does not apply to pin transactions. (However, I think visa interlink may be covered under this but you would have to prove it went through this network). This here would cover scams, and cloned cards.
Regulation E requires banks to give provisional credit within 10 business day of a written dispute. They have 45 days (90 days international) to investigate it. Technically it is the 11th business day (even if the bank credits you on the 10th business day, you won’t be able to use tell the 11th business day.)
Another rule that is sometimes overlooked is this
for unauthorized transfers involving only your debit card number (not the loss of the card), you are liable only for transfers that occur after 60 days following the mailing of your bank statement containing the unauthorized use and before you report the loss. This here would cover scams, and cloned cards also.
Quote Catcher Credit Card Processing said,
August 6, 2008 @ 1:37 pm
I am a firm believer that if something is too good to be true, it probably is. I am also very weary of properties that ask for full payment up front, unless it is from a reputable company that I have researched. There are many avenues to check the legitimacy of a site prior to payment like the Better Business Buruea. We a consumers need to take back control and do our due diligence before typing in our card numbers.
joe said,
August 30, 2008 @ 11:57 am
good to know