FIGHT BACK : PLASTIC DEBIT CARD WORKS LIKE A CHECK.

Byline: David Horowitz 

A debit card is like a plastic check. It allows you to withdraw cash from your checking account instantly, but there is no float or time before a check clears. Debit cards can carry a credit card logo, which confuses some people, and you have less federal protection than what is offered for a credit card.

If someone rips off a credit card number, you have 60 days to report it, and you only have a maximum $50 risk, which credit card companies rarely charge. With debit cards, you have only two days to let the bank know about theft or misuse.

Then from three to 60 days, if you don't report the problem, you can be charged $500 against bank losses, and if you wait longer, the bank can clean out your balance and any overdraft protection to pay off illegal usage.

Debit cards do not show creditworthiness, and they are not honored everywhere. Finally, debit cards may be subject to transaction and membership fees. Find out how much the fees will cost you before you decide on going the debit-card route.

Sale battle plan

No successful retailer ever loses money by putting an item on sale or selling it at a deep discount. A strategy to get you into a store is like a battle plan drawn up and put in place sometimes a year or two in advance.

It takes time to draw up ads, shoot commercials, print coupons, put together catalogs, and develop the hype and pitch that put you in buy-at-a-sale mode. Focus groups of average shoppers are tested by the retailer well in advance to see if the sale message works.

Manufacturers set production schedules before their top salespeople sell the stores the merchandise. Pricing depends on the quantity a retailer buys, but no matter what the item is, the markups and profit are sometimes double or triple what the store pays for it.

So, a 50 percent discount can still net the seller a 50 percent or better profit beyond the store's overhead. This is just some background that shows how we are all psyched out and basically programmed before we write the check or pull out the plastic or cash to pay for our bargains.

Telemarket fraud

Nobody really knows how many people are victims of telemarketing fraud because they enter their homes through the telephone lines. The only way to fight back is to spot a scam before you become the victim or mark.

Never buy anything from any caller who asks you to send money when you don't know his or her identity or what company you are dealing with. Giving out credit card numbers or banking information to a stranger on the phone is like giving them a signed, blank check to rip you off.

If a prize is free, free means no payments for postage, handling, shipping or service. A prize should come with no strings attached. If a phone salesperson tries to rush you into making a decision, walk away from the deal by hanging up the phone.

If a charity or salesperson wants to come to your home to pick up the money, this is a sure tip-off to a rip-off and could also be a setup to a home-invasion robbery. Common sense is your only guide. When in doubt, call the police.