debit-card-sec

Debit card security: Things you should know to protect your account

Debit cards are becoming more and more popular these days. However, many people worry about debit card security.

Debit cards can be linked to a large amount of money in an account, unlike credit cards which have a capped credit limit. The thought of debit card fraud can be worrisome, which is why most debit cards contain security features to prevent debit card fraud.

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Rates last updated November 14th, 2018
$
Name Product Debit Card Access ATM Withdrawal Fee Fee Free Deposit p.m. Monthly Account Fee Product Description
NAB Classic Banking
Visa
$0
$0
Enjoy convenient, unlimited access to your money.
$0 monthly account fee.
Tap and pay with your NAB Visa Debit card, NAB Pay for Android or NAB PayTag for iPhone. Temporarily block your card at the touch of a button if you lose it.
ING Orange Everyday Account
Visa
$0
$0
No fees for any ATM in Australia or overseas.
$0 monthly account fees.
Enjoy $0 ATM withdrawal fees when you deposit $1000 and make 5+ card purchases per month. Get a competitive ongoing variable rate when linked with the ING Savings Maximiser.
NAB Classic Banking with Platinum Visa Debit Card
Visa
$0
$0
$10 cashback on contactless purchases, $0 foreign transaction fee and complimentary travel insurance.
$10 monthly account fee.
Receive $10 cashback when you spend $1000 on contactless purchases. Complimentary travel insurance, transport accident insurance, purchase protection insurance and more when you meet eligibility criteria.
HSBC Everyday Global Account
Visa
$0
$0
No foreign ATM or transaction fees.
$0 monthly account fee.
Enjoy no minimum ongoing balance or transaction requirements and the flexibility to hold up to 10 currencies. Apple Pay and Google Pay available.
Citi Global Currency Account
Mastercard
$0
$0
Hold up to 10 currencies.
$0 monthly account fee.
Enjoy one linked debit card to hold up to 10 currencies and receive foreign currencies for free. Earn up to 2.25% p.a. interest on your AUD balance.
HSBC Day to Day Transaction Account
Visa
$0
$0
Open an account and easily switch your regular payments over from your current bank.
$0 monthly account fee.
Through your linked Visa debit card, you can access exclusive shopping, travel and restaurant deals here and abroad through HSBC's home&Away Privilege Program.
MyState Bank Glide Account
Visa
$0
$0
Simplify your everyday banking with these sleek digital features.
$0 monthly account fee.
Choose the way you pay with access to Google, Samsung and Apple Pay. Send and receive money in less than 60 seconds with PayID.

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What are the types of debit card fraud?

There are a number of forms of debit card fraud, ranging from impersonation to creation of false details. However, the two type of debit card fraud that affects users the most are impersonation and theft.

Theft is a straight forward form of debit card fraud - the user's card is stolen and used by the fraudster. Impersonation is similar to theft but instead of really using the customer's debit card, the fraudster "impersonates" the card - often an identical card is issued, or the card number and details are used for purchases and cash withdrawals.

How can I prevent debit card fraud?

To prevent debit card fraud, most card issuers use the "chip and pin" system. This system was first introduced in the UK market and experts estimate that it reduces debit card fraud by up to 80%. This system is gradually being introduced in Australia and by 2015, all cards whether debit cards or credit cards, will be using this system.

The chip and pin system requires the user to enter a PIN number during transactions, instead of signing. The PIN is mailed to the user separately, a few days after he or she receives the card - there is a few days difference in mailing the PIN, so that the mail cannot be easily intercepted. Users can further increase their debit card security by altering the PIN number to some other number that they prefer. Due to the use of a PIN number, fraudsters need to know both the card details and the pin, which makes impersonation or theft more difficult, thereby reducing debit card fraud.

Most banks also use algorithms to spot any possible card fraud. These algorithms note any sudden, unusual expenses or steep increase in expenses. They also note whether the card is used in two locations quite far from each other, within a very short period of time. These algorithms automatically spot anomalies, which causes the bank to contact the cardholder to verify the transactions.

Most card issuers, including Visa and Mastercard offer a zero liability guarantee, which means that cardholders are not liable for any unauthorised transactions, if those transactions are noted in time - so one of the final steps to enhanced debit card security is to always read your card statement carefully and notify your bank of any suspicious activity.

Shirley Liu

Shirley Liu is a program manager at finder, formerly the publisher for Banking and Investments. She is passionate about helping people make an informed decision, save money and find the best deal for their needs.

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