Verizon, AT&T and T-Mobile Launch Isis Payment System > Care Not I Do

If you catch it quickly enough it can be stopped yes, but the law only gives you a 2 day window. If you hadn't caught it, you would have been out of the money.

From the link I posted:
1. If you report the card stolen, you owe nothing on future charges.
2. If you don't and someone makes a debit (not credit) charge.
a) If you catch it within 2 days, you owe at most $50 just like a credit card.
b) If you catch it after 2 days, but within 60 days you owe at most $500
c) After that you are SOL. You are up to the mercy of the bank (some are more lenient than others).

I believe you are correct in that if the debit card is used as a credit card then you are protected, but since it is also a debit card, all someone needs is the pin and those protections vanish.

Again, it's much safer to use a credit card as they are a lot safer.

»lifehacker.com/5734973/how-to-av···bit-card