PIN versus signature conundrum

As for which method of debit card use -- PIN or signature -- is most secure, consumers are bit schizophrenic. According to a STAR/First Data study in 2005, 47% of consumers preferred PIN debit because they felt it was more secure. But the December 2005 issue of the Chicago Fed Letter, published by the Federal Reserve Bank of Chicago, noted that "cardholders perform twice as many signature-based debit transactions as PIN-based debit transactions. Cardholders in the United States performed 10.3 billion signature-based transactions and 5.3 billion PIN-based transactions in 2003."
And with all that activity, only 20% of those surveyed in the STAR/First Data study were aware that their debit cards have the same zero liability coverage as their credit cards.
"While debit cards offer much in the way of convenience, with equal protection against fraud and loss, they don't appeal equally to everyone," McBride says. "Consumers who always pay their credit card balances in full will find that a rebate credit card is far more attractive than a debit card due to the higher rewards and additional float time on the money."
Debit card use will continue to grow because consumers find them an efficient way to manage money. Nevertheless, there are still a few aspects, such as daily usage limits, overdraft risk and blocking, that need to be considered.
Here's how blocking works, according to the FTC: You use a credit or debit card when you check into a $100-a-night hotel for five nights. At least $500 of your available credit or available amount in your checking account is immediately reduced by that amount. In addition, hotels and rental car companies often add anticipated charges for "incidentals" like food, beverages or gasoline to the blocked amount.