With all the Data Breaches is it safer to use cash?

[rockpzazz]

In the past year it seems every few weeks we hear about a data breach and credit cards being comprimised.  With the shopping season and Black Friday about to begin is it safer to carry cash when shopping this year or is credit/debit the way to go?  If I go anywhere it will likely be Walmart (not a lot of options for me), and I usually carry cash anyways, but just wondering how everyone else plans to do it this year.

 

Would it be safer or smarter to use a prepaid card instead of a credit/debit card?  I thought about doing this if I bought some items online, but didn't know if it would be worth the hassle.

[berry1014]

We are doing cash this year. I have had my credit replaced once already this year and my debit card was just replaced last month. The only time I will use the credit card is if I need to order online but I am hoping to be able to get everything in the stores.

[jesusluvu]

I was wondering the same thing. This issue seems to becoming more prevalent and easy to access. I am just very uneasy about carrying that large amount of cash on me with so many people around. You never know if some rat is hoping we do the same thing and take advantage of the situation. I am on the fence really. I might just do the prepaid thing.

[nicolette12926]

im using cash this year I already had to replace a credit card and a debit card within 3 months..Plus if the computers go down for credit machines again I wont be stuck ...

[Kanyon71]

I will use a CC, affords me more protection on my purchases. I don't like having to get them replaced with the breaches but for now at least it's a fact of life. Hopefully with the new breed of CC's coming out things will get better. I'm not a big cash person, just as dangerous if someone really wants it, pick pockets, thieves and people being mugged for it. Not to mention can't pay with cash on the websites where it happens just as often lol.

[Bopeep]

I'm too afraid of losing the cash to carry that much with me.  I'll be using my debit card and praying for the best.

[shopping4my3son]

If you lose your credit card or if there's a data breach it costs you nothing but a few phone calls to fix it.

 

If you lose cash or it's stolen you are out of luck.

 

Debit cards are a little trickier. You're account can be wiped out and it can take time to get your money back.

 

I will use credit cards. I try to keep $20 on me for purchases that are only a couple dollars.

[TTFN10000]

I'm not a big cash person but I do bring both. You can actually get a reloadable American Express with your name on it.

[jamieva]

I work in banking for 20 years.  I would say credit card over debit card because if something happens and gets a hold of your debit card number they can wipe you out.

 

With the breaches keep in mind as soon as that retailer tells Visa/MC/Amex about the breach they immediately reissue new cards to everyone who used their card at their store in this period of time.  

 

Also I would contact your bank and see if they are issuing cards with the chip in them (its visible on the left hand side of the card) and if you go to a store that has a chip reader, USE IT.  Don't swipe the card if you have the chip.  using the chip means no information is transmitted to be stored so a breach would not affect you.

 

I would not recommend cash due to the chance you could lose it, drop it etc

[ytmomof4]

Just saw a new one at staples

[magickallight]

It is scary - but cash can be dangerous as well - if crooks see you paying with cash and know that you are carrying a good bit with you - they could easily mug you in the parking lot.

 

Since I do most of my shopping online, I either use the PayPal option (if available) or I have ONE credit card dedicated to online purchases so that if the number does somehow get hacked - I can shut it down and know which charges were mine and which to put holds on.

 

As a word of caution - NEVER use your ATM card or credit card linked to your bank account in stores or online - as if that number gets hacked you could have your bank account cleared out and good luck with fighting with banks!

[starbeck96]

 I usually get a Walmart Gift Card and put about half of what I intend to spend, at Walmart, on it.  That way, if I am not able to get what I want from Walmart, I don't have all of that BF money tied up in a specific gift card.  This year I am thinking about putting some money on my pre-paid Blue Bird card.  It is American Express though, so not everywhere takes it.  I always take at least half of my BF money in cash as well.

 

I had to replace my debit card earlier this year because of the Target breach. 

Edited October 21, 2014 by starbeck96

[pogiporkchop]

I'll likely end up using cash or gift cards because I have very few people to shop for this year.

[len_mullen]

In the past year it seems every few weeks we hear about a data breach and credit cards being comprimised.  With the shopping season and Black Friday about to begin is it safer to carry cash when shopping this year or is credit/debit the way to go?  If I go anywhere it will likely be Walmart (not a lot of options for me), and I usually carry cash anyways, but just wondering how everyone else plans to do it this year.

 

Would it be safer or smarter to use a prepaid card instead of a credit/debit card?  I thought about doing this if I bought some items online, but didn't know if it would be worth the hassle.

 

Not unless you are printing your own cash.  Bad guys have used rogue ATM machines to collect account and PIN data.  Crooks use cameras to capture the information on the screen and follow your keystrokes.  Muggers wait for people to leave the ATM.

 

Just hang on to your receipts and make sure all the charges on your accounts are for purchases you made.  Your CC company will not hold you responsible for any loss due to a breach.

[mcwalker]

Credit cards all the way.

With a credit card you are protected against unauthorized charges.  A replacement is a slight hassle, but not that big a deal.  If you get the right one, they cost nothing and earn miles/points/perks, too.

 

As a few people noted, Debit Cards are riskier because the money will already be taken out of your bank account when you find out and then it can take time to get it restored (and there could be some issues if you don't notice and don't notify the bank within a specified time period).  My bank card for use at ATMs once came with a MasterCard logo (making it both a bank card and a debit card).  I returned it to the bank and asked them to issue me a bank card without the debit card feature and they have been complying ever since.

 

Not only can cash be stolen, but in the frenzy people can easily drop a few bills or a wallet.

[drush0637]

Credit card is best. Check your credit cards and see which may offer "replacement coverage" for electronics or other pricey items if they break after warranty. My BIL has one, bought computer, it died 3 months after MFR warranty expired and they sent him a check for entire cost since estimate to fix was more. Way to go.

[misstaken]

Maybe I'm alone here, but I'm horrible at sticking to a budget (especially during huge sales) so I carry most of what I'm spending in cash. I have never tried a pre-paid card but that is a good suggestion for someone like me. Maybe I will check into it for this year. Carrying cash is always a concern for me but it's a risk that I have always taken.

[len_mullen]

Maybe I'm alone here, but I'm horrible at sticking to a budget (especially during huge sales) so I carry most of what I'm spending in cash. I have never tried a pre-paid card but that is a good suggestion for someone like me. Maybe I will check into it for this year. Carrying cash is always a concern for me but it's a risk that I have always taken.

 

No.  There are a lot of benefits to using a credit card -- cash back, extended warranties, etc.  The real problem is you are undisciplined.  Fix that.  I like lists.  Make a list in the calm of your home, take it with you, and don't buy anything on the list.  If you succumb to impulse, return the items once you calm down.

[Deal Grabber]

Im nt worried about.I only keep a certain amount of money in my account.The rest stays in savings.If my debit card is stolen or hacked im covered by my bank.

[irisbee]

Credit. In spite of the breeches, it still feels way safer than carrying a big wad of cash. Maybe I just shop in a rough area?  Plus, I want the cash back my CC earns.

[gemini73]

I really don't like carrying all that cash on me. I'm afraid of losing it.

[NovemberDiva]

I carry one credit card and a few bucks for emergencies!

[ISU ME]

Credit cards offer protection against this.  No reason to not use credit cards!

[Pepper_Mint_Tea]

I carry debit & cash, not too much cash tho. But you ever know when your gonna & why your gonna need a bit of xtra cash. not too much cash tho. can't get crazy and have 1,000 on hand. But I say a little bit of cash is fine !!! And take a secured SMALL purse where you I w it won't fall out or ull lose it some how !

[tyreejames]

I will continue to use credit online and since my actual store shopping is very little I take the cash that I expect to spend. Last year I probably took around $200 out and expect this year to be around the same give or take. I think I've shopped at just about every store that's had a breach in the last year or so (Target, Home Depot, Staples). I will simply continue to monitor my accounts as I do now.

[Jen08]

I am glad you posted this b/c I was going to actually ask everyone the same question.  I was one of those that used their credit card at Target last year and had to get new cards and also signed up for the 1 year free credit monitoring.  Even so, I am still on the fence as to what I am going to do this year.  I don't really know if I want to carry cash or just use my credit card knowing that they will protect my account if there's another issue this year. 

[freesia39]

My credit cards in the past year has been breached at:

- Target

- PF Changs (and I hate myself for it)

- Home Depot

 

They issued me new ones. Life goes on. Considering how little cash I carry nowadays, the bonus dollars I can earn on credit cards, and that I don't want to be robbed at an ATM after taking out cash, I'll keep using credit cards.

[cwashi3324]

Last year I used my debit card for two DVD purchases at Target. When they announced the breach a few weeks later, I thought nothing of it. Then my credit union sent me a new debit card. My original card/account wasn't breached, but they must have replaced my card as a precautionary measure. Edited October 23, 2014 by cwashi3324

[tdanette]

Instead of cash, I use the prepaid American Express since it has no monthly fees and no fees to load/unload it (if I do this at Walmart). It's a great way to save for the holidays. I'll continue to use my credit cards since those have protection.

[magickallight]

I just saw this and found it interesting...

4 Reasons Why You Should Shop at Stores That Got Hacked

Retailers are gearing up for the holiday shopping season, but one thing has some consumers spooked: According to a new survey by CreditCards.com, 45% of respondents say they are less likely to shop at stores that have suffered a data breach, such as Target, Home Depot, or Michaels. Almost 30% say they will “probably” avoid stores that have been hacked, and 16% claim they “definitely” will.
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While it’s hard to believe that half of all shoppers will actually skip the sales at major retailers come holiday season, Target did suffer a 5.5% decline in transactions last year after its data breach.

But shoppers, you’re being silly. You don’t need to avoid stores that have been hacked. Here’s why.

 

1) If someone steals your credit or debit card number, you have very limited liability.

You’ve got at least one reason to thank Congress: The Fair Credit Billing Act and the Electronic Fund Transfer Act cap how much money you’ll lose if someone steals your credit or debit card. If someone steals your card number but not your actual card — which could happen during a data breach — you are not liable for any fraudulent transactions. Read: You won’t lose any money. Just be sure to report any fraudulent debit card charges within 60 days of receiving your statement.

The rules are a little different if someone steals your physical card. With credit cards, you still won’t need to pay anything if you report the loss before a thief uses the card. Otherwise, your liability is capped at $50. With debit cards, you’ll only pay up to $50 if you report the theft within two days, or up to $500 if you report the theft within 60 days of receiving your statement.

There’s another reason to prefer credit over debit. When someone makes fraudulent charges on your credit card, you can challenge the bill when you receive it. But when someone else uses your debit card, that money comes straight out of your account, so it could take a little bit longer to recover your funds.

And if you’re really afraid, just stash the plastic. CreditCards.com reports that 48% of shoppers say data breaches have made them more likely to spend cash.

 

2) Avoiding these stores won’t protect you from the scariest kinds of identity theft.

When someone steals your credit card number and spends your money, that’s considered “existing account fraud.” Banks and credit card companies have gotten pretty good at identifying abnormal spending patterns, so you’re likely to catch existing account fraud early, and your liability is limited.

But if someone steals your Social Security number, opens a new credit card in your name, provides a new billing address, and runs up big charges, it might take you a while to notice. That’s called “new account fraud,” and it’s a real headache.

To catch new account fraud, check your credit report three times a year. It’s not hard to do, and it’s free. Your report will show all your accounts and debts, as well as your payment history. Check to make sure all of the information is accurate and all of the accounts actually belong to you. (Go. Do it now. Did you catch a problem? Here’s what to do.) If you’re afraid that your social security number has already been stolen, you can put a free fraud alert on your credit file to let lenders know or freeze your credit so that no one else can open new accounts in your name.

But you don’t give out your Social Security number every time you swipe your credit card, don’t worry about going shopping.

 

3) Safer cards are on the way.

Are you sick of all these data breaches? So are businesses — after all, they’re the ones on the hook for fraud, not you. That’s why Visa and Mastercard are sending out new “chip-and-pin” cards. These cards have embedded microchips, which are more secure than magnetic stripes. If you’ve ever traveled abroad, you might remember what chip-and-pin technology looks like; Europeans have been using this system since the 1990s. While not foolproof, these cards are a great improvement. President Obama signed an executive order last week requiring that all government credit cards use chip-and-pin technology.

Practically speaking, chip-and-pin cards won’t do much more to help consumers at point-of-sale — remember, you have limited liability. But starting Oct. 1, 2015, the liability will shift to whichever business has the oldest technology. If credit card companies don’t update their cards, they will be liable for any fraud; if retailers don’t offer chip-and-pin terminals, they’ll be on the hook. So everyone has an incentive to make payment systems more secure, which is ultimately in consumers’ best interest.

4) Retailers that got hacked are working harder to win back your trust.

Guess which retailer is installing chip-and-pin technology in all of its stores and on all of its branded cards — Target!

Guess which retailer offered free credit monitoring to all its customers — Target!

Guess which retailer just started offering free shipping — Target!

Given that there have been 606 data breaches already this year, according to the Identity Theft Resource Center, you can probably expect more to come. But the retailers that have already been hacked are beefing up security and offering free identity theft protection services to consumers, so you’re probably safer there than everywhere else.

Edited October 23, 2014 by magickallight