Visa, MasterCard Security Breach

I was procrastinating about getting the new card, until I just checked my accounts, and found a service charge for $7.95, which I called about because my checking accounts were supposed to be free. I was told that was no longer the policy, unless a minimum balance was met, which is diametrically opposed to the purpose of my small account, which is used solely for debit charges and online purchasing, because I didn't want my primary funds to be exposed to anyone's scamming.

After talking at length with the bank, I transferred that account to a new savings account, which still has debit and online activity abilties, without the minimum balance requirement, so long as I transfer at least $5 per month into it...thats no problem. They will also be sending me a new debit card, but that will take from 10-14 days to arrive, so I guess my online purchasing is curbed for a while.

Argg!! I just received an ATM card, instead of a debit card on my saving account as I was promised. Since an ATM card cannot be used for online purchasing, it is useless to me. I called the express bank service to inquire about it, and was told that I can't get a debit card on a saving account. It appears that I shall have to change banks, which is something that i really don't want to do, but I'm not going to pay $7.95 per month for an account that I only keep a couple of hundred balance in, and until now, has always been free.

I can't do anything until Monday, but I'm wondering if I'm spinning my wheels, or if I can likely find a bank that has a way of debiting a free account?

seekermeister said:

Argg!! I just received an ATM card, instead of a debit card on my saving account as I was promised. Since an ATM card cannot be used for online purchasing, it is useless to me. I called the express bank service to inquire about it, and was told that I can't get a debit card on a saving account. It appears that I shall have to change banks, which is something that i really don't want to do, but I'm not going to pay $7.95 per month for an account that I only keep a couple of hundred balance in, and until now, has always been free.

I can't do anything until Monday, but I'm wondering if I'm spinning my wheels, or if I can likely find a bank that has a way of debiting a free account?

Have you looked into a credit union? Accounts are federally protected like traditional banks. Most charge a minimum "membership" fee of $5 - $10 which is kept in a separate savings account. Membership then allows you to open a standard checking account which usually requires no minimum balance, no monthly fee, free checks, free debit card attached to the checking account, no minimum monthly usage requirements, etc.

That sounds good, the only part I'm unclear on is the part about the membership fee. If it is a charge, then what are you talking about with it being kept in a savings account? Is the charge a one time fee, or does it recur?

seekermeister said:

That sounds good, the only part I'm unclear on is the part about the membership fee. If it is a charge, then what are you talking about with it being kept in a savings account? Is the charge a one time fee, or does it recur?

Credit unions are, by tradition, owned by the members. The membership fee is a one time deal. Rather than have that money just sitting around, it's placed in a savings account so it can draw interest. If you want to add additional money to the savings account you certainly can. But it's not required as long as you maintain that minimum membership fee.

Credit unions have seen a large surge in membership ever since banks began taking advantage of their customers a few years back. They are full service financial institutions offering everything from CDs to car loans to safety deposit boxes to financial counseling, etc. Some credit unions cater specifically to military members, either active duty or retired. Others may be specifically for city or state employees. And others still may be geared to students. Most that I've seen will find a way for just about anybody to join.

marsmimar said:

seekermeister said:

That sounds good, the only part I'm unclear on is the part about the membership fee. If it is a charge, then what are you talking about with it being kept in a savings account? Is the charge a one time fee, or does it recur?

Credit unions are, by tradition, owned by the members. The membership fee is a one time deal. Rather than have that money just sitting around, it's placed in a savings account so it can draw interest. If you want to add additional money to the savings account you certainly can. But it's not required as long as you maintain that minimum membership fee.

Credit unions have seen a large surge in membership ever since banks began taking advantage of their customers a few years back. They are full service financial institutions offering everything from CDs to car loans to safety deposit boxes to financial counseling, etc. Some credit unions cater specifically to military members, either active duty or retired. Others may be specifically for city or state employees. And others still may be geared to students. Most that I've seen will find a way for just about anybody to join.

Thanks, now I have to find a credit union in which I can have a dual account, one with checking and ATM privileges, and a second one with only a debit card. I don't know anything about it, but there is one here that has done a lot of TV advertising, that sounds like it is open to anyone. They will be the first one that I call on Monday.

seekermeister said:

Thanks, now I have to find a credit union in which I can have a dual account, one with checking and ATM privileges, and a second one with only a debit card. I don't know anything about it, but there is one here that has done a lot of TV advertising, that sounds like it is open to anyone. They will be the first one that I call on Monday.

If the credit unions in your area operate like mine, the debit card you receive should serve a dual function. It can be used like a traditional credit card (Visa or MC in all probability) for online purchases, in store purchases, etc AND the same card can also be used as an ATM card. All funds are immediately withdrawn from the checking account it's assigned to whether it's used at an ATM or for a more traditional purchase.

Yes, I think that is true, but the problem is that I want one account which is kept very small to be the only one that has debiting ability. That is to provide a safety barrier to prevent any unauthorized use of the card from being able to access the primary account. That has been easy with my current bank, because both of my accounts were checking, which I could tailor as I liked. However, with the credit union, it sounds as though one must be a savings account, which I doubt can be debited. If I use the checking for that purpose, that means that my direct deposit pension payment would have to access the savings, thus it would become the primary account. I suppose that would be okay, but I will have to do some mental adjusting to become accustomed to the notion.