Consumer Group Lukewarm at Visa's Fix for Unsecure Debit Cards.SAN FRANCISCO--(BUSINESS WIRE)--Aug. 13, 1997--Consumers Union, non-profit publisher of Consumer Reports, commended Visa's announcement today to limit liability on debit cards debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. , but said the action is insufficient to make the cards secure. "Visa's announcement -- though partially addressing the issue of liability -- ignores our fundamental concern -- the security of consumers' checking accounts," said Rob Schneider This article is about the American actor/comedian. For the musicians, see Robert Schneider or Bob Schneider. Robert Michael Schneider (born October 31, 1963) is an American actor, comedian, screenwriter, and director. , senior staff attorney for Consumers Union's Southwest Regional Office in Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas. "A consumer who is victimized by fraud, theft or error may see their account quickly emptied and have to wait until their accounts are recredited to pay their bills." Visa's announcement today limits liability for debit cards to zero, if reported within two business days, to a maximum liability of $50. In addition, they announced a new activation activation /ac·ti·va·tion/ (ak?ti-va´shun) 1. the act or process of rendering active. 2. the transformation of a proenzyme into an active enzyme by the action of a kinase or another enzyme. 3. feature for the card and a provisional Temporary; not permanent. Tentative, contingent, preliminary. A provisional civil service appointment is a temporary position that fills a vacancy until a test can be properly administered and statutory requirements can be fulfilled to make a permanent appointment. credit within five business days for lost funds due to unauthorized transactions. Consumers, however, still will face delay when trying to recover their money. Even if stolen funds are eventually recovered, consumers could find their accounts drained and without the money they need to meet their daily expenses. "Unlike a credit card, a loss with an unsecure debit card is instantly drained from your checking account," said Gail Hillebrand, senior staff attorney for Consumers Union's West Coast Regional Office in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . "Consumers may find themselves without a penny in their account and may face enormous bounced-check penalties as a result of theft, fraud or error." "With a credit card, a consumer has the opportunity to review account charges and to dispute -- and withhold with·hold v. with·held , with·hold·ing, with·holds v.tr. 1. To keep in check; restrain. 2. To refrain from giving, granting, or permitting. See Synonyms at keep. 3. payments for -- amounts they suspect are the result of theft, fraud or error," continued Schneider. "Even with Visa's announcement, debit cards lack this protection. With a debit card, a consumer's money is gone -- plain and simple -- until the bank recredits the account." "We call on Visa to address the fundamental issue -- security," continued Hillebrand, "and we call on consumers across the country to fully examine the risk of unsecure debit cards they may have received from their banks. If they decide the risks outweigh out·weigh tr.v. out·weighed, out·weigh·ing, out·weighs 1. To weigh more than. 2. To be more significant than; exceed in value or importance: The benefits outweigh the risks. the benefits, we urge consumers to contact their banks and demand a replacement card with PIN-security protection." Consumers Union, publisher of Consumer Reports, is an independent, nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. testing and information organization serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health nutrition and other consumer concerns. Since 1936, our mission has has been to test products, inform the public and protect consumers. CONTACT: Consumers Union Rob Schneider or Rafael Ayuso, 512/477-4431 Gail Hillebrand or Robin Kane, 415/431-6747 |
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