Does Your Business use a Debit Card?

Walter Devins, Attorney

You may not be aware, but a business debit card does not have the same loss protection as consumer debit cards do. Many businesses use debit cards to make purchases for their business online or at brick and mortar stores.  There is a large risk here as there is no protection on the potential misuse or fraudulent charges placed on the card.  Whereas Federal Law (Electronic Funds Transfer Act and Credit Cart Accountability, Responsibility and Disclosure Act) protects individual but not corporate bank accounts from fraudulent charges.  A nonprofit based in North Carolina lost over $29k due to unauthorized purchases on a business debit card:

So what should a small to medium sized business do?  Possible solutions include: creating two bank accounts, a small one with a debit card, and a larger one without a debit card; or contact credit card companies and inquire whether they will provide fraud protection (certain Master Card Business Debit cards provide protection of up to $15k; Visa Business Debit card offers some protection, but not for ATM and instances where the PIN number is stolen (

Regardless of what a business chooses it is clear that small to medium sized businesses must be careful and should monitor their accounts with increased diligence.

Walter Devins

Harrison & Devins, PA