Multiple choice general knowledge

Which of these statements about debit cards is NOT true?

  1. Debit card purchases take money directly out of your bank account.

  2. Debit cards offer the same kind of legal protections from fraud that credit cards do.

  3. The use of a debit card sometimes results in extra charges toward the consumer.

  4. Under federal law you risk unlimited loss if you fail to report an unauthorized transfer or withdrawal within 60 days after your debit card statement is mailed to you.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Debit cards have weaker fraud protections than credit cards under federal law. Your liability for unauthorized debit transactions can be unlimited if you don't report within 60 days, whereas credit cards have a $50 maximum liability and stronger dispute rights.

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