Debit cards

[lrjohnson]

Originally Posted by vsjhoc

I think they are not asking you if you "want" debit or credit. The store is asking you whether you have a debit card or a credit card, because they process them differently. I don't think the same card can function as either a debit or a credit card.

Originally Posted by vsjhoc

So despite other posts to the contrary, I had it right the first time, yes?
1. You answer based on whether you are presenting a debit card for immediate withdrawal, or a credit card to charge your purchase; OR

2. You answer based on how you are directing them to process your debit card, either for immediate withdrawal or not-quite-so-immediate withdrawal from your linked checking account.

Your addition of item 2 significantly alters your original statement, so yes you have it right but I don't know about "the first time."

Or you and I may be one of those pairings that say the same things so very differently that we can't see we agree.

[vsjhoc]

Originally Posted by lrjohnson

Or you and I may be one of those pairings that say the same things so very differently that we can't see we agree.

Let's agree to agree.

[tener]

i haven't got any qualms with debt cards, i preffer them because you spend what you have, not worrying about when and how you'll pay it back.

[Ima saver]

I am sorry, but I just don't like them. I have four or five checking accounts and it is hard to keep track of the balances in all of them.

[abowers]

Some places -- not sure if this is just in NJ -- don't even require you to sign if the purchase is under $20 with a debit card!!

But anyway, I would notice the card missing from my wallet the same day most likely. I like my debit card, because I can track my spending, whereas if I kept a wad of cash in my wallet it might disappear more quickly that I'd like it to. My debit card is linked to one checking account, which usually only has a couple hundred dollars in it --- most of my money is in an online money market savings account, not linked to any card.

I'm a little surprised people are listing the advantages of using a credit card here, given the nature of the forum. I don't care if I get rewards, because I'm using my debit card - it's my own cash. I'm not racking up debt at 10.99% (or worse), and I'm not spending money I don't have. My debit card has a credit card logo, and it has the 3 digit security code on the back. I'm perfectly comfortable using it online at sites I trust.

I see an increase in the use of debit cards as a good thing, (presumably shifting away from credit cards?) considering how much debt this country has.

[tinapbeana]

Originally Posted by abowers

I'm a little surprised people are listing the advantages of using a credit card here, given the nature of the forum. I don't care if I get rewards, because I'm using my debit card - it's my own cash. I'm not racking up debt at 10.99% (or worse), and I'm not spending money I don't have. My debit card has a credit card logo, and it has the 3 digit security code on the back. I'm perfectly comfortable using it online at sites I trust.

most folks on this site who are using their credit cards regularly also pay off the balance in full every month, which means a) there is no interest accrued and b) they aren't spending money they don't have. it this situation, using the credit card is exactly like spending the cash you have on hand or available via debit card (the money is still gone at the end of the month), but they receive cash back or points as a result of using the credit card.

[LuxLiving]

We like our debit cards. We use them on a 'same as check' basis and just find it shortens the checkout process and Ima, we just immediately subtract the amount in the checkbook so the bookkeeping isn't that big of a deal. When The Hubster uses his (for his gasoline or the occasional item out like parts for cars/house) then he just brings the receipt in and hands it to me, his bookkeeper. I then subtract it from the register. Nothing all that different from writing a check.

[creditcardfree]

We love our debit card too. It has never caused us any problems. We just treat those receipts like gold until we record them...usually daily. After they are recorded, I write an R on the receipt to indicate that I have recorded it in the check register.

[rduell]

Originally Posted by creditcardfree

We love our debit card too. It has never caused us any problems. We just treat those receipts like gold until we record them...usually daily. After they are recorded, I write an R on the receipt to indicate that I have recorded it in the check register.

That's how I use my debit card also. I haven't convinced my husband how easy it is to use though. He still writes checks or puts it on a credit card. I use mine practically daily anymore.

[Jacklad]

Originally Posted by creditcardfree

We love our debit card too. It has never caused us any problems. We just treat those receipts like gold until we record them...usually daily. After they are recorded, I write an R on the receipt to indicate that I have recorded it in the check register.

I just download my transactions every day. I'm not sure how quickly things are posted in the US, but here in Canada it's instantaneous. Most of the transactions indicate the vendor, but some smaller places don't indicate that information. If I happen to download one of those while hubby is out and about, he'll get asked "What did you just spend $2.53 on?" as soon as he walks in - just so I can record the correct budget category in Money.

The best part is no loose change to go astray! No more "I broke a twenty and can only account for $13" <laugh>.

Jackie

[disneysteve]

Originally Posted by abowers

I'm a little surprised people are listing the advantages of using a credit card here, given the nature of the forum. I don't care if I get rewards, because I'm using my debit card - it's my own cash. I'm not racking up debt at 10.99% (or worse), and I'm not spending money I don't have.

Using a credit card DOES NOT MEAN racking up debt or paying interest. We use our CC for everything we possibly can. Our monthly bill is usually $2-3,000, sometimes more. We pay the bill in full every month, never paying a penny in fees or interest. In return, we get rewards worth hundreds of dollars each year. We wouldn't get that if spending cash. Another advantage is that at year-end, we get a complete record of all of our purchases, broken down by category (auto, dining, retail, etc.). That is a great tool for budgeting. I never pay cash when I can use credit.

[RJB1180]

I agree with steve, I actually use 3 cards to max my rebates, I have a 5%/1% card for the first 30K/year and another flat 1% card for all over that. Throw in the discover for whatever their 5% category is this quater,, right now restauants, amazon etc.

I have made almost 350 IN CASH BACK/ SAVINGS BONDS

[parafly]

Debit Cards are the present and future. Cash will become obsolete one day.

[poundwise]

Most people like debit cards due to convenience and/or an aversion to the use of credit cards.

However, there are at least two pitfalls with debit cards that everyone should be aware of:


1) If you use your debit card at a gas pump, you may only pump $20 worth of gas, but don't be surprised if as much as $75 is frozen in your account. link The length of time that the 'freeze' remains is up to your bank, but the amount is up to the gasoline retailer.

There are other instances where cards are used in this manner as well, such as when renting a vehicle or reserving/checking-in a hotel room.


2) If you are ever charged more that you were supposed to be charged, or someone uses your card or number illegally, be prepared for lots of hassle. For instance, the law limits consumer liability for credit card fraud to $50. For debit card fraud, your liability is $50 if you notify the bank with 2 days of learning of the fraud (receiving a statement), and $500 or more after two days, up to the entire amount stolen under certain circumstances. link

Also, while there are protections in place, your other checks could bounce and you could face bounced check fees, bad credit reports, cash flow problems and other hassles. (Unlike with a credit card where you simply fight with the bank about getting disputed charges off your account, not getting your own money back.)

[abowers]

Originally Posted by disneysteve

Using a credit card DOES NOT MEAN racking up debt or paying interest. We use our CC for everything we possibly can. Our monthly bill is usually $2-3,000, sometimes more. We pay the bill in full every month, never paying a penny in fees or interest. In return, we get rewards worth hundreds of dollars each year. We wouldn't get that if spending cash. Another advantage is that at year-end, we get a complete record of all of our purchases, broken down by category (auto, dining, retail, etc.). That is a great tool for budgeting. I never pay cash when I can use credit.

I understand it doesn't have to mean racking up debt and paying interest. But I personally am paying off the last of my cc debt racked up while in college, and with that mindset, I personally am not using my credit cards. My fiance uses his credit card for big things, like when he bought his laptop, then paid it off immediately, but in general, we're not buying too much beyond groceries and occasionally going out to eat to justify using a CC for its rewards. I have a 5% gas rebate card, but I currently only need to fill up once every 2-3 weeks so it's not worth it to me anymore (where I used to fill up at least once a week).
I'm fully aware of the benefits you can reap from using credit cards wisely - My fiance's parents used credit cards to pay for all three of their sons' college tuition at private universities -- and got a ridiculous amount of gift certificates for Borders (works for them because they read a lot).
I'm just saying I like my debit card for now

[Broken Arrow]

Yeah, I like my debit card too. Worked perfectly fine for years for me.

Currently, I'm using a credit card for my everyday purchases, but only because of the general protection it affords me and to help rebuild my credit.

Don't worry though. I don't carry a balance and I track every purchase I make on it.

[Ima saver]

Poundwise, thank you for pointing out the dangers of using debit cards, but we are all different, so we can agree to disagree. I would never let my husband use a debit card, he constantly loses his receipts in the work van.

[Jacklad]

Originally Posted by Ima saver

I would never let my husband use a debit card, he constantly loses his receipts in the work van.

That's exactly why I make mine use his debit card - I don't need receipts because I just download the transactions daily.

Jackie

[poundwise]

Originally Posted by Ima saver

Poundwise, thank you for pointing out the dangers of using debit cards, but we are all different, so we can agree to disagree. I would never let my husband use a debit card, he constantly loses his receipts in the work van.

Ima, in this case, I don't have to agree to disagree. That is, I only stated some information in the hopes that it might prove helpful to others. I did not state an opinion one way or the other about using debit cards.

I simply believe that everyone should be aware of all of the details, including potential hassles and risks that are unique to debit cards and their usage.

[sweeps]

Originally Posted by poundwise

I did not state an opinion one way or the other

PW, may I suggest a future in politics...