ATM card vs debit card

[anoynomous1875]

Hi,

I recently received 2 letters (1 from OCBC and another from POSB); they are upgrading my magnetic strip card, but also making an offer to upgrade to a debit card. For OCBC, it is an upgrade to an Frank debit card.

It seems that there are no annual charges.

Is it worth it or safe to do so? I can already use my POSB card just for NETS.

Furthermore, my OCBC card is strictly for savings purpose only. I just use it for ATM cash withdrawal and if I want to do online transactions, I use the online banking facility but never for cashless payments in the form of online payment; bcoz I am scared that if I use a debit card, and it is stolen, it would be used for online purchases.

I am already using a debit card, and the debit card is from another bank, tied to a current account, so I don't have so much fear, as I keep quite little in the current account.

What do you guys think?

 

[hanneng]

The local banks are phasing out all the magnetic card due to MAS regulation. The new debit card is also an ATM card.

 

[derrickgoh]

Hi,

I recently received 2 letters (1 from OCBC and another from POSB); they are upgrading my magnetic strip card, but also making an offer to upgrade to a debit card. For OCBC, it is an upgrade to an Frank debit card.

It seems that there are no annual charges.

Is it worth it or safe to do so? I can already use my POSB card just for NETS.

Furthermore, my OCBC card is strictly for savings purpose only. I just use it for ATM cash withdrawal and if I want to do online transactions, I use the online banking facility but never for cashless payments in the form of online payment; bcoz I am scared that if I use a debit card, and it is stolen, it would be used for online purchases.

I am already using a debit card, and the debit card is from another bank, tied to a current account, so I don't have so much fear, as I keep quite little in the current account.

What do you guys think?

As long as there are no annual charges, I don't see any harm. Just beware of the minimum amount. Except for a few "special" cards like OCBC uPlus and OCBC Plus, most debit cards are linked to accounts that require at least $500 in it at all times. If using for internet transaction, check first 'cos some debit cards can't be used online.

 

[derrickgoh]

The local banks are phasing out all the magnetic card due to MAS regulation. The new debit card is also an ATM card.

IMO its pointless as long as the mag strip is still there. Old ATM cards have the strip only. Debit cards (like credit cards) have both the strip and chip. The reason is many countries (strangely including the USA) still use swipe system.

So if the bank issues cards with only EMV chip, you will be in trouble if you visit countries that still use swipe system. Hence cards have both. Yes the EMV chip is secure but the mag strip is not. And since the mag strip is present, people can still skim the card. So what's the point?

To me, its like having a super secure $5,000 padlock on your gate and then placing the key to this padlock under your door mat.

If only there is a way for banks to disable the mag strip. So those who travel can opt to have the mag strip enabled while those who never or seldom travel can disable it. That makes more sense but from a technological point of view, perhaps it can't be done?

 

[kebinu]

Try not to have the debit function where you can make payment online as there's quite a number of cases of unauthorized payment.

 

[derrickgoh]

Try not to have the debit function where you can make payment online as there's quite a number of cases of unauthorized payment.

If one wishes to be super kiasu, can apply for a OCBC Plus card and use it purely for internet transactions. The Plus card is linked to an account which has no minimum balance. Meaning its fine even if you have $0 in there, you don't get fined.

So as and when you intend to make a purchase, you transfer the exact amount to your Plus account then pay for it with your Plus card. This way even if your debit card details are compromised, they can't do sh*t since your Plus account is empty once you've done your payment.

 

[anfielder]

IMO its pointless as long as the mag strip is still there. Old ATM cards have the strip only. Debit cards (like credit cards) have both the strip and chip. The reason is many countries (strangely including the USA) still use swipe system.

So if the bank issues cards with only EMV chip, you will be in trouble if you visit countries that still use swipe system. Hence cards have both. Yes the EMV chip is secure but the mag strip is not. And since the mag strip is present, people can still skim the card. So what's the point?

To me, its like having a super secure $5,000 padlock on your gate and then placing the key to this padlock under your door mat.

If only there is a way for banks to disable the mag strip. So those who travel can opt to have the mag strip enabled while those who never or seldom travel can disable it. That makes more sense but from a technological point of view, perhaps it can't be done?

The magnetic strips CAN be deactivated for overseas use since late last year. Bank policies differ - some turned off all the strips, some left the strips on certain cards on (but informed the cardholder via mail).

The cardholder can activate/deactivate the strips when needed through IB or phone banking.

 

[magna_strike]

but recently in edmw got several people mention that for debit card fraud transactions, u wont get back your money unlike for credit card transactions can waive off? is this true?

 

[Suleyman]

IMO its pointless as long as the mag strip is still there. Old ATM cards have the strip only. Debit cards (like credit cards) have both the strip and chip. The reason is many countries (strangely including the USA) still use swipe system.

The replacement of cards to only EMV chip is phase 1. Eventually, all ATMs and NETS POS systems will take chip only. Magnetic strip only for overseas use.

If only there is a way for banks to disable the mag strip. So those who travel can opt to have the mag strip enabled while those who never or seldom travel can disable it. That makes more sense but from a technological point of view, perhaps it can't be done?

Magnetic strips can be disabled/enabled depending on customer's needs. Some (eg UOB) can even do this online. So eventually even if someone skims the magnetic strip of your card, it is useless in SG, and unless it is activated for overseas use, useless anywhere else.

but recently in edmw got several people mention that for debit card fraud transactions, u wont get back your money unlike for credit card transactions can waive off? is this true?

No, not true. For fraudulent transactions, it will be investigated by the bank. For credit cards, they usually waive payment of the fraudulent charges until the investigations are over. For debit cards, they usually do not return the money until the investigations are over. If the banks are satisfied that you are not at fault, for credit cards, these are struck off your account. For debit cards, only then will they return your money.

For this reason, I prefer credit cards, and do not use debit cards. However, this is not to say that you have no recourse in the event of fraudulent charges.

 

[derrickgoh]

Interesting, I didn't know the strip can be de-activated. I know you can "prevent overseas access" although I don't know if its the same thing i.e. de-activating the mag strip.

 

[Suleyman]

Interesting, I didn't know the strip can be de-activated. I know you can "prevent overseas access" although I don't know if its the same thing i.e. de-activating the mag strip.

To be clear, it is 'prevent overseas access', so during this transition period, a skimmed card can still be used in Singapore to withdraw money fraudulently.

However, when the ATMs and NETS POS systems have moved to the ENV chip only (like your credit cards), then this loophole will be closed. The ENV ATMs replacements should be beginning soon as well.

 

[Techno Pride]

Hi,

I recently received 2 letters (1 from OCBC and another from POSB); they are upgrading my magnetic strip card, but also making an offer to upgrade to a debit card. For OCBC, it is an upgrade to an Frank debit card.

It seems that there are no annual charges.

Is it worth it or safe to do so? I can already use my POSB card just for NETS.

Furthermore, my OCBC card is strictly for savings purpose only. I just use it for ATM cash withdrawal and if I want to do online transactions, I use the online banking facility but never for cashless payments in the form of online payment; bcoz I am scared that if I use a debit card, and it is stolen, it would be used for online purchases.

I am already using a debit card, and the debit card is from another bank, tied to a current account, so I don't have so much fear, as I keep quite little in the current account.

What do you guys think?

For the POSB card, are they sending you the replacement card or asking you to submit an application? I got a letter much earlier asking me to apply.

For Maybank, they don't ask for permission and simply send the debit card.

 

[derrickgoh]

To be clear, it is 'prevent overseas access', so during this transition period, a skimmed card can still be used in Singapore to withdraw money fraudulently.

However, when the ATMs and NETS POS systems have moved to the ENV chip only (like your credit cards), then this loophole will be closed. The ENV ATMs replacements should be beginning soon as well.

Thanks. So if we want the mag stripe to be disabled completely then we need to contact the banks right?

 

[Suleyman]

Thanks. So if we want the mag stripe to be disabled completely then we need to contact the banks right?

Don't think it can be done and you wouldn't want it to be done. Upgrade of ATMs and NETS POS have not been done yet so you won't be able to use your ATM card until then.

 

[anoynomous1875]

To be clear, it is 'prevent overseas access', so during this transition period, a skimmed card can still be used in Singapore to withdraw money fraudulently.

However, when the ATMs and NETS POS systems have moved to the ENV chip only (like your credit cards), then this loophole will be closed. The ENV ATMs replacements should be beginning soon as well.

I was wondering about that too...I thought I would be getting the ENV chip, but the letter says i am getting new magnetic strip cards......

 

[derrickgoh]

I was wondering about that too...I thought I would be getting the ENV chip, but the letter says i am getting new magnetic strip cards......

Kinda defeats the purpose no? Whole idea is to get rid of the strip or at least be able to deactivate it so no one can skim.

 

[ingen]

The OCBC ATMs I have been using already default to reading EMV for cash withdrawals. You will notice that when you put the card in, it makes a small click sound like there is a electronic clamp onto the EMV chip.

It's only a matter of time before only EMV chips are used for cash withdrawal. Applaud MAS for the quick rollout, can't imagine something like this happening that fast in other countries.

 

[anoynomous1875]

The OCBC ATMs I have been using already default to reading EMV for cash withdrawals. You will notice that when you put the card in, it makes a small click sound like there is a electronic clamp onto the EMV chip.

It's only a matter of time before only EMV chips are used for cash withdrawal. Applaud MAS for the quick rollout, can't imagine something like this happening that fast in other countries.

Actually, it's not so much about EMV chip vs magnetic strip for me.

it is really more about the fact that if I switch to a debit card, it has debit card numbers on it that can be used to make an online purchase - and I don't want that risk, because the linked accounts are my emergency cash fund. Besides, if I want to make online payments, I already have a seperate debit card for tht.