Corrections & Clarifications: An earlier version of this story incorrectly stated Jared Gibson’s place of residence. He actually lives in Highland Park, Illinois.

Jared Gibson, an avid basketball enthusiast, didn’t attend the NBA finals game in June featuring the Boston Celtics and Dallas Mavericks.

Residing in Highland Park, Illinois, Gibson had previously reported about $1,100 in fraud on his debit card to Chase. However, he then discovered an unauthorized charge of $3,084 from a ticket broker on a new card that he had not yet received in the mail.

Initially, Chase credited both fraudulent charges to Gibson’s account. But after an investigation, Chase informed him that the $3,084 credit would be reversed, leaving him financially responsible since they claimed to have “proof” that the transaction was not unauthorized and subsequently closed his case.

When Gibson requested this proof, he was told the purchase was made with his name, address, and email. He only received a blurry screenshot of a transaction receipt that was hard to read.

“Compelling evidence would be having me on video walking into that arena,” Gibson expressed to YSL News.

Debit Cards Offer Less Protection Compared to Credit Cards

Gibson’s experience underscores the importance of consumers being careful with their debit card transactions to spot fraudulent activities and to understand their liabilities when fraud occurs.

According to Grace Piling, deputy editor for YSL News Blueprint, a personal finance content provider, the federal fraud liability protections for debit cards are not as strong as those for credit cards. Since debit cards are directly linked to bank accounts, when fraud occurs, the money is usually gone, making recovery difficult.

“Many people mistakenly believe that debit cards are safer than credit cards due to the potential for fraudsters to max out a credit limit,” Piling noted. “In reality, credit cards offer zero fraud liability protection, meaning you won’t be held responsible for any unauthorized charges.”

Due to weaker fraud protections for debit cards and the shorter time frames banks have to address unauthorized charges, “it’s far more common to hear stories of individuals struggling to resolve issues with unauthorized charges on debit cards as opposed to credit cards,” commented Carla Sanchez-Adams, a senior attorney at the National Consumer Law Center.

Fraud Protections for Debit and Credit Cards Vary

Federal law protects consumers from unauthorized transactions on both credit and debit cards. The Electronic Fund Transfer Act (EFTA), governed by the Consumer Financial Protection Bureau’s Regulation E, covers electronic fund transfers, including debit card transactions, according to the CFPB, which contributed information for this article but could not comment on specific cases.

On the other hand, credit cards are governed by the Truth in Lending Act, which is implemented by the CFPB’s Regulation Z.

Generally, the regulations that cover credit cards provide better protections compared to those for debit cards.

Here’s a simple breakdown:

• If a consumer realizes their debit card is lost or stolen and reports it within two business days, they are responsible for a maximum of $50 for any unauthorized transactions. After that, if reported within 60 days, they could face liability up to $500.
• For credit cards, the maximum liability for unauthorized use is typically $50, but many payment networks have a “zero liability” policy, meaning the consumer might not owe anything for unauthorized transactions at all, according to the CFPB.
• Additionally, regulations require financial institutions to provide provisional credit to the consumer’s account if an investigation into an error exceeds a certain period (usually 10 business days).

Customer Receives Credit

After YSL News contacted Chase and Visa regarding Gibson’s situation, informing them that his case was closed with no chance for appeal,

On Friday, Chase notified Gibson that he will receive a full credit of $3,084.

A Chase spokesperson mentioned via email to YSL News, “After further review, we have verified that the transactions were unauthorized and have credited our customer’s account.”

In a follow-up communication, a Chase representative stated, “Our assessment of this situation revealed additional evidence confirming that these transactions were unauthorized.” However, they could not disclose further details about the new evidence.

Online transactions may sometimes indicate a scam.

Customer remains frustrated over the incident

Gibson expressed gratitude that the fraudulent charge was eventually refunded, but he voiced his annoyance that the problem wasn’t addressed when he first reported it.

“I’m relieved that the issue got sorted out. However, it shouldn’t have required a major media outlet’s involvement to achieve this,” Gibson mentioned.

“I spent numerous hours over several months attempting to fix this on my own, and the customer service team showed minimal empathy towards my situation,” he added in a text. “It’s really disappointing that all it took for the institution to ‘confirm’ that I’m ‘responsible’ for the purchase was a name, an email, and a (billing) home address. That’s a very simple task for anyone to find online. My 8-year-old daughter could find that info in just 2 minutes.”

Tips for safeguarding yourself

Monitor your account transactions regularly. If you spot a charge that seems unfamiliar, inform your card issuer right away to maximize your chances for a refund.

Consumers can also file complaints regarding financial products or services by visiting the CFPB’s website at www.consumerfinance.gov/complaint or by calling (855) 411-CFPB (2372).

This article has been updated due to an earlier error.