Visa did implement a zero liability policy for debit transactions using Visa branded cards processed through its own network, however transactions or debit cards that don't meet Visa's requirements still fall under the same laws as before, and legally, debit card protection is still considerably weaker than for credit card transactions. I don't think Mastercard followed suit. I've seen some banks advertise that they offer their own protection on debit card fraud, although I have no idea how restrictive the terms are. It may be very difficult to meet the requirements to get the bank to pony up the money that is it advertising as a perk.

The pain of debit card fraud can be so much greater than for credit card fraud. A crook using your debit card can clean out your bank accounts, tap into your overdraft line of credit, cause all of your outstanding checks (like your mortgage, student loan, credit card payments, etc.) to start bouncing which then triggers all kinds of fees, penalties from your bank, late fees from the companies that got bounced checks, harming your credit, etc. Even assuming that the fraud will be pretty clear cut to prove, you'll be totally out of money and the bank doesn't need to offer you any provisional credit for about 10 days, IIRC. You'll probably have to close your bank account and open new ones, wait for your new checks and new ATM/check card to arrive in the mail, change your direct deposit information with your employer and for any other bills you automatically deduct from your bank account...it could be quite a mess even when the bank eventually makes you whole again.

The issue of "holds" or "blocks" is likelier to hit debit card users than credit card users. Most of us keep our credit card balance well below our credit limits, so that unexpected $500 hold that the hotel put on your card isn't a problem. However, there are plenty of us who don't necessarily keep enough in our checking accounts to absorb an unexpected $500 hold which could take a week or more to clear. In the meantime, unbeknownst to us, our checks could start bouncing because of the hold and we'd never know until we get our monthly statement and see the mess. In this case, there wasn't any fraud involved so you're stuck with the cost unless you're on very friendly terms with your bank and they might cut you some slack. But the companies getting all these bounced checks from you may not be so lenient.