Chase urgest customers to use credit instead of debit transactions
In a letter sent to cardholders, Chase is urging customers to use credit (i.e. sign for the transaction) rather than debit (i.e. enter PIN numbers) claiming that credit transactions are more secure than debit ones because you don’t have to punch in your pin (which someone might see. But security experts seem to agree that debit transactions are much more secure than credit ones.
Chase’s motivation in this is no surprise. When you do a debit transaction they get maybe 5-10 cents from the merchant. When you do a credit transaction, the merchant pays 30 cents plus 2-3%, normal credit card rates.
Use debit rather than credit to make life easier for merchants.
The full story is here.
Bad bad Chase, Fees & charges | admin April 22, 2010
