Debit cards

[poundwise]

Originally Posted by Sweepsplayer

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

Hm. Which should I be?


Republican: State a opinion and stick to it regardless of whether it is right or wrong

Democrat: State an opinion, then change it frequently according to polling data


NOTE: Both hold enough truth but are meant JOKINGLY so don't flame me.

[BTC]

Most debit cards can be processed as either a PIN based debit card or a typical credit card. In the case of credit, the transaction is typically routed through a third party processor and won't post to your checking account as quickly as a debit transaction.

I use my debit card a lot. If you're disciplined, which I wasn't in my youth, it makes more sense to use a cash back rewards based credit card. I really need to get one.

That USAToday article someone posted contains a lot of confusing, misinformation, imo.

[mahon73]

Debit cards are similar to checks. When you make a purchase with a debit card the purchase is pending. When the bank confirms you have the available funds the charge is applied to your balance. If you do not have the available funds, the bank charges you a fee. Just like bouncing a check.

[Jacklad]

Originally Posted by mahon73

Debit cards are similar to checks. When you make a purchase with a debit card the purchase is pending. When the bank confirms you have the available funds the charge is applied to your balance. If you do not have the available funds, the bank charges you a fee. Just like bouncing a check.

Really? If that's the case, then debit cards work differently in the US than they do here in Canada. Here, debit cards access a system called "Interac" which immediately accesses your account and debits the funds (hence, "debit" card). If you have insufficient funds, the transaction is declined - you can never "bounce" a debit transaction (although if you have standard overdraft protection, you can overdraw). Debit purchases in Canada are never pending - within seconds of a debit card transaction, it is available for download from your financial institution.

I've also seen US commercials for "Visa Cheque Cards" - do they differ from debit cards?

Jackie

[sweeps]

Admittedly I don't use debit cards so I'm not an authoritative source, but I think the way Jackie has stated is the way it works. I would be very surprised if a bank allows you to debit more than you have in your account (fee or not).

[lrjohnson]

Originally Posted by Sweepsplayer

Admittedly I don't use debit cards so I'm not an authoritative source, but I think the way Jackie has stated is the way it works. I would be very surprised if a bank allows you to debit more than you have in your account (fee or not).

When my card info got stolen, the person exhausted my checking and since I had overdraft attached to my checking, my Credit Union charged me a fee and moved money from savings to checking. Not sure how much info I added there; I didn't have money in checking, but I was able to "overdraft." Not me, some loser with my card.

[sweeps]

Sorry to hear that, lr. That is why I neither use debit cards nor have overdraft protection on my checking account.

[disneysteve]

Originally Posted by Sweepsplayer

Sorry to hear that, lr. That is why I neither use debit cards nor have overdraft protection on my checking account.

I also don't use a debit card. And I never saw the point in overdraft protection. My overdraft protection is not spending more money than I have.

[tinapbeana]

former debit card holder here. i no longer carry one, but when i did it was when i was younger living on my own for the 1st time in atlanta, & wasn't comfortable carrying cash.

i maintain overdraft on my checking b/c i do online bill pay and some checks i write are actually posted as an ACH transaction (cable bill, books-a-million). computers are just as fallable as humans, and i want overdraft protection in the event someone posts a check to my account twice in error. that way the overcharge is covered and doesn't generate any fees with my bank. the charge also does not generate an NSF fee from the company posting it. finally, i can dispute the charge without worrying about other legitimate checks i may have written bouncing all over the country.

[safari]

I use a debit card when travelling abroad to wthdraw cash from ATM's, which is cheaper than exchanging currency at a bank or American Express office. Otherwise, I always use a credit card to make purchases whenever I can. I've never bought anything with my debit card.

[tinapbeana]

Originally Posted by safari

I use a debit card when travelling abroad to wthdraw cash from ATM's, which is cheaper than exchanging currency at a bank or American Express office. Otherwise, I always use a credit card to make purchases whenever I can. I've never bought anything with my debit card.

i did the same when i was in argentina for work: the exchange rate at the ATM was the same as a regular visa, which is infinitely better than what any place with a counter can give you. all the small markets which had the best prices only accepted cash.

[Jacklad]

Originally Posted by lrjohnson

When my card info got stolen, the person exhausted my checking and since I had overdraft attached to my checking, my Credit Union charged me a fee and moved money from savings to checking. Not sure how much info I added there; I didn't have money in checking, but I was able to "overdraft." Not me, some loser with my card.

Did you ever find out who it was, or how he got your PIN?

There was a scam here in Canada a few years ago where someone actually set up a dummy ATM. When people tried to use it, it recorded all their information (and PIN) but gave a message that the machine was out of order. They nabbed a bunch of people that way - that, and the horrendous "foreign ATM" fees are one reason I never use those generic ATMs.

Jackie

[poundwise]

And thus the terminology gremlin bites again...

[lrjohnson]

Originally Posted by Jacklad

Did you ever find out who it was, or how he got your PIN?

No, I didn't. It was a "swiped" card, meaning my magnetic strip info was stolen, like with the scam ATM. I don't know if the thief "used" my PIN or used my debit as a credit and signed or what. I recovered 100% of my money including all fees, so overall not too horrible.

I did "de-link" my savings and checking....it was an automatic feature that is easy enough to decline. Some other folks out there may have that overdraft protection and not know it. For me not having it is better protection!

Originally Posted by Poundwise

And thus the terminology gremlin bites again...

Expand, please?

[Jacklad]

Originally Posted by lrjohnson

No, I didn't. It was a "swiped" card, meaning my magnetic strip info was stolen, like with the scam ATM. I don't know if the thief "used" my PIN or used my debit as a credit and signed or what. I recovered 100% of my money including all fees, so overall not too horrible.

OK - that's a difference between the Canadian and US systems then. Ours are pin only, no signatures. Probably safer, because you know how often cashiers check signatures.

If you're up for a laugh, check out http://www.zug.com/pranks/credit/ to see how bad this can be in real life. Although this was a credit card, it still boggles the mind to see the transactions that were accepted, and the fact the neither cashiers nor the credit card company noticed anything amiss (well, not until the very end of Part 2, and that required a huge purchase).

Jackie

[LuxLiving]

Oh Jacklad, thank you for the glorious laugh this morning. Hilarious!

Sad, but FUNNY!!!

[poundwise]

Originally Posted by Jacklad

If you're up for a laugh, check out http://www.zug.com/pranks/credit/ to see how bad this can be in real life.

This is absolutely hilarious! I love the hieroglyphics.

[Broken Arrow]

Non-related, but I just noticed your new avatar and custom title, Poundwise. Nice!

[poundwise]

Make sure you continue on to "The Credit Card Prank II" section, which is even more outrageous.

"Clearly I'm forging on behalf of the butt." :

(You have to read it to understand.)

[poundwise]

Originally Posted by Broken Arrow

Non-related, but I just noticed your new avatar and custom title, Poundwise. Nice!

Thanks!