CC vs. Debit vs. Check Card

[littleroc02us]

You always hear about the first two (CC's and Debit Cards) but no one ever talks about Check Cards. Why is that? I use a Check card for everything except Groceries and Gas because that is the way my wife likes it. Don't argue with the wife if you know what I mean. Personally I don't understand why people would use a debit card because you have to use a pin each time, but that is fine if you do. I use my Check Card because it only allows me to spend what is in my account. There isn't a chance of an overdraft because my Credit Union links my savings to it and doesn't charge me anything if it's over the limit, they just transfer the money. Also, they have set a limit of $500 so that if it was stolen that is all the crook could get. You can set that lower or higher but have to call the bank first. We just bought furniture for $1900 and we called before we went and they raised it temporarily. As for Fraud issues, because it is a Visa card it is protected by Zero Liability protection which means if someone were to steal it and use it I would need to call the bank within 24 hours and they would credit my account within 5 days. I've had great success with this system, but does anyone know why the media doesn't talk about Check Cards?

[cypher1]

I have a similar setup with my credit union and check card tied to savings account. Although I didn't think to cap an over draft limit to savings (I will now). By default I use my AMEX CC for the benefits whenever I can, so i actually only use my Visa check card for ATM at the moment. I realize the Zero Liability feature, but if my wallet were stolen, I'd more paranoid about losing that card, (whether its a 500 or a few thousand), meaning the cash is depleted immediately. Whereas if someone were to do something to my 2 CCs, I can flag the cards/current transactions, and not have to wait for banks re-imburse my money back.
I've had identity theft in the past, and wasn't really worried about charges to CC since they've always been to good to dispute/correct, but when they go after my direct checking/savings, I'm more wary of when I use the card.
As for why we don't hear much about them specifically, I can't say, unless everyone just refers to them as debit cards?

[littleroc02us]

The question though with a credit card is let's say you just purchased a large item on it with the intention of paying it off when you get the bill, but in the meantime you get it stolen and they use it to charge something and it takes your account over the limit. You would get a fee for that and until the cc company reimburses your cc it will be completely immobile. Problems can happen whatever type of card you use.

[cjscully]

Since the vast majority of debit cards come branded with either Visa or MasterCard and can be used that way, I'd say most people consider debit card and check card to be synonymous. The only difference is whether you put in a PIN or you sign like a credit card. To me the terms are definitely interchangeable.

[disneysteve]

Originally Posted by cjscully

Since the vast majority of debit cards come branded with either Visa or MasterCard and can be used that way, I'd say most people consider debit card and check card to be synonymous. The only difference is whether you put in a PIN or you sign like a credit card. To me the terms are definitely interchangeable.

I agree. I didn't realize there was any difference which is probably at least partly due to the fact that I don't use either one. I only use a credit card. I see the commercials for the Visa check cards and just assumed it was the same as a debit card.

[littleroc02us]

yes, when I use my check card, I have to hit the credit button and sign, but the funds are immediately deducted from my checking account within a day. I also use it as an atm card. I have never tried the debit option. No reason to.

[cypher1]

Originally Posted by littleroc02us

The question though with a credit card is let's say you just purchased a large item on it with the intention of paying it off when you get the bill, but in the meantime you get it stolen and they use it to charge something and it takes your account over the limit. You would get a fee for that and until the cc company reimburses your cc it will be completely immobile. Problems can happen whatever type of card you use.

If I were put in that situation of having credit theft, therefore maxing my account, I'd simply dispute the charges. Unless the rules have changed for disputing depending on CC company, any dispute created, does not show on statement during the investigation, until it's been resolved. Now it's been awhile since I'd had to file one, but I believe they still go by that protocol. I'd actually go another step, and request a whole new card for that account. If I was really worried, I'd flag my credit reports for identity theft, to contact me directly in any questionable activity. Overkill, but you see where i'm going with this.

I agree there are same risks with either type of card. From personal experience I'd be more worried if someone was able to charge/steal an amount from my direct savings/checking accounts, therefore depleting my cash. Even though the bank will follow through and correct, I wouldn't want to depend on CC more, while in that situation. Whereas if they did steal and/or max one of my CCs, I still have access to direct cash before its corrected. I'm simply saying I'd rather use my CC and potentially expose more risk, than have a security breach with my bank accounts directly.

[littleroc02us]

Originally Posted by cypher1

If I were put in that situation of having credit theft, therefore maxing my account, I'd simply dispute the charges. Unless the rules have changed for disputing depending on CC company, any dispute created, does not show on statement during the investigation, until it's been resolved. Now it's been awhile since I'd had to file one, but I believe they still go by that protocol. I'd actually go another step, and request a whole new card for that account. If I was really worried, I'd flag my credit reports for identity theft, to contact me directly in any questionable activity. Overkill, but you see where i'm going with this.

I got rid of all my credit cards but my wife had one when she came into the marraige and both of our names are on it. We had a fraud issue on it over a month ago and we called Discover and basically they cancelled the card and issued new ones which took a week. Now imagine if you were someone who relied on them to survive or travel. For me it was great not to have one for a while, because you feel like you didn't owe anyone even for a little bit.

I agree there are same risks with either type of card. From personal experience I'd be more worried if someone was able to charge/steal an amount from my direct savings/checking accounts, therefore depleting my cash. Even though the bank will follow through and correct, I wouldn't want to depend on CC more, while in that situation. Whereas if they did steal and/or max one of my CCs, I still have access to direct cash before its corrected. I'm simply saying I'd rather use my CC and potentially expose more risk, than have a security breach with my bank accounts directly.

I understand where your coming from, but it could still happen to your personal account I won't have the problem with depleting my cash because they can't touch my savings and there is a limit on my checking that I would get back in 5 days anyway. We don't keep much in our personal checking unless we plan on buying something large. Plus I can transfer money in about 2 seconds from a web connection, so the most they would get is a couple hundred.

[JoshuaHeckathorn]

Check cards and debit cards are the same thing, but like DS, I don't really use either. I prefer the purchase protection that credit cards provide, the piece of mind that comes with knowing it's not directly linked to my bank account, and of course- all the rewards! I especially love getting a big cash back check every year. I even paid for my entire honeymoon using rewards points, so I'm a big fan of credit cards if you're responsible enough to pay your bills on time and in full each month.

[littleroc02us]

Originally Posted by JoshuaHeckathorn

Check cards and debit cards are the same thing,

That's not true, because with a debit card you have to put in a pin number and with a check card you swipe it and choose credit but it deducts it from your account. I use one every day.

[disneysteve]

Originally Posted by JoshuaHeckathorn

Check cards and debit cards are the same thing

Originally Posted by littleroc02us

That's not true, because with a debit card you have to put in a pin number and with a check card you swipe it and choose credit but it deducts it from your account.

Other than having to enter a pin, is there any functional difference for the user? Either way, the money is taken straight out of your account. I'm not really understanding what is different in the way that they work.

Bottom line is I'd rather not have every purchase taken out of my account right away. I don't want to have to constantly track how much is in my account, what payments are pending, what deposits haven't cleared yet, etc. I don't want to have to record a zillion separate transactions. It is incredibly easier to use my CC for everything, make one payment once a month and get a nice annual summary of all of my spending broken down by category. Plus, I earn hundreds in rewards for spending that I'd be doing anyway.

[cypher1]

Originally Posted by littleroc02us

Now imagine if you were someone who relied on them to survive or travel. For me it was great not to have one for a while, because you feel like you didn't owe anyone even for a little bit.

I realize this totally up for debate, but if I were someone that relied on a CC to survive (travel or not), given my living circumstances, I'd have to re-evaluate why I have to depend on them in the first place.

Originally Posted by littleroc02us

I understand where your coming from, but it could still happen to your personal account I won't have the problem with depleting my cash because they can't touch my savings and there is a limit on my checking that I would get back in 5 days anyway. We don't keep much in our personal checking unless we plan on buying something large. Plus I can transfer money in about 2 seconds from a web connection, so the most they would get is a couple hundred.

Agree with same outcome on savings, and being able to transfer funds quickly. But I don't care if I have $1 or $100000 at risk in my savings, I prefer to limit risking or exposing access to that account, whenever I can.

Originally Posted by JoshuaHeckathorn

I prefer the purchase protection that credit cards provide, the piece of mind that comes with knowing it's not directly linked to my bank account, and of course- all the rewards!

That statement nicely sums up my view. Although I get rewards, thats not the main reason I use CC.

I don't think CCs are evil or a need, but with the right discpline they can be utilized to one's advantage. In the past I used to always use my Check Card by default, hardly ever the CC. After the identity theft, I switched everything around, realizing how convenient it was to make one monthly payment in full, while still managing my charges daily, like my checking account. Is that for everyone? No, just my way of peace of mind, which still has flaws. Clearly this is a preference of usage between checking/debit vs CC. Whichever systems works best for the user is the right way.

[cypher1]

Gotta love google and wikipedia

Debit card - Wikipedia, the free encyclopedia

"A debit card (also known as a bank card or check card) is a plastic card that provides an alternative payment method to cash when making purchases. Functionally, it can be called an electronic check, as the funds are withdrawn directly from either the bank account, or from the remaining balance on the card. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card."

[Kris Jarczyk]

With a check card, I like the fact that if you have the money you buy it, if you don't have the money you don't buy it. The old fashioned way. Definitely becoming a smart trend to live within your means. Sounds like check cards do offer protection in case they are fraudulently used but would still like to here more pros and cons on the liabilities.

[littleroc02us]

Originally Posted by disneysteve

Other than having to enter a pin, is there any functional difference for the user? Either way, the money is taken straight out of your account. I'm not really understanding what is different in the way that they work.

Bottom line is I'd rather not have every purchase taken out of my account right away. I don't want to have to constantly track how much is in my account, what payments are pending, what deposits haven't cleared yet, etc. I don't want to have to record a zillion separate transactions. It is incredibly easier to use my CC for everything, make one payment once a month and get a nice annual summary of all of my spending broken down by category. Plus, I earn hundreds in rewards for spending that I'd be doing anyway.

Yes your right, the only difference is that you have to use a PIN number with a debit card. IMO I find it better for my wife and I to balance our check book and to have the money deducted from my checking account and deposited. It allows me to keep a zero allocated budget that is accurate, instead of living on credit and then paying it off each month. I suppose the rewards can be fun to get as extra spending cash, but that isn't our plan. I'm kind of like a geeky accountant who tries very hard to be proactive with our budget and to make it better every year. I know it sounds crazy, but I like the incoming and outgoing aspect of finances and the balancing of my budget with the checkbook. To me it feels more real to know that I cannot rely on credit for everything or to get rewards. Although again as I stated before my wife is the one who wants to use Discover for Gas and Groceries. Even though it bothers me we do it to keep the peace. I'm not thinking I'm beating Discover by getting their rewards or becoming rich because of it, we use just see it as some extra cash.

As you probably already know, I'm not big on credit for anything except mortgages and that comes from my past where I abused it and almost became bankrupt. It really scares the heck out of you to be in that position if you've ever been there. That is why I prefer cash transactions.

[Joan.of.the.Arch]

Originally Posted by littleroc02us

You always hear about the first two (CC's and Debit Cards) but no one ever talks about Check Cards. Why is that? I use a Check card for everything except Groceries and Gas because that is the way my wife likes it. Don't argue with the wife if you know what I mean. Personally I don't understand why people would use a debit card because you have to use a pin each time, but that is fine if you do. I use my Check Card because it only allows me to spend what is in my account. There isn't a chance of an overdraft because my Credit Union links my savings to it and doesn't charge me anything if it's over the limit, they just transfer the money. Also, they have set a limit of $500 so that if it was stolen that is all the crook could get. You can set that lower or higher but have to call the bank first. We just bought furniture for $1900 and we called before we went and they raised it temporarily. As for Fraud issues, because it is a Visa card it is protected by Zero Liability protection which means if someone were to steal it and use it I would need to call the bank within 24 hours and they would credit my account within 5 days. I've had great success with this system, but does anyone know why the media doesn't talk about Check Cards?

I thought a debit card was the same thing as a check card. I have two cards called debit cards from two different banks. On both I have the choice to use it without entering a pin number. In those cases, I don't think I even have had to sign, but that may be because the store has a policy not to ask for a signature on a credit purchase for small amounts. I think at Walgreens drugstore, for example, they do not ask for a signature on anything under $20.01.

Littleroc, when you hand your card to a clerk, and they ask, "debit or credit," how do you answer? Do you not have a choice? With my debit card, I do have a choice. I can forgo having to use the PIN if I choose. Both my debit cards are Visa cards, too. They are run through the Visa system.

But mostly, I use credit card for the rewards. I use the debit cards just enough times per month to qualify for the better interest rates on the cash in the accounts. Using the debit card at all is just a little hoop I jump through.

[JoshuaHeckathorn]

Originally Posted by littleroc02us

That's not true, because with a debit card you have to put in a pin number and with a check card you swipe it and choose credit but it deducts it from your account. I use one every day.

You don't have to enter a PIN when using a debit card. It's your choice as a consumer, but most people don't realize that. In fact, if you choose to enter a PIN, then you should understand that the banks get paid less by the retailer than if you were to sign. That's why your bank wants you to use your check/debit card and always sign. There's a winner and loser in every transaction, which is why interchange fees are such BIG business!

[disneysteve]

Originally Posted by Kris Jarczyk

With a check card, I like the fact that if you have the money you buy it, if you don't have the money you don't buy it. The old fashioned way.

We are perfectly capable of using a credit card in the exact same way. If we don't have the money, we don't buy something. It doesn't matter if we are paying cash, check, debit or credit. Living within your means and using credit cards are not mutually exclusive. It always annoys me when people equate using a credit card with going into debt or over-spending.

[JoshuaHeckathorn]

Originally Posted by disneysteve

It always annoys me when people equate using a credit card with going into debt or over-spending.

AMEN!

[minnie1928]

Originally Posted by JoshuaHeckathorn

You don't have to enter a PIN when using a debit card. It's your choice as a consumer, but most people don't realize that. In fact, if you choose to enter a PIN, then you should understand that the banks get paid less by the retailer than if you were to sign. That's why your bank wants you to use your check/debit card and always sign. There's a winner and loser in every transaction, which is why interchange fees are such BIG business!

As a former banker of 20 years, this is totally correct! Interchange income is HUGE for the banks!! That's why they push cards over checks. Checks cost more to process and the income stream from selling checks is pathetic. However, the income stream on cards is HUGE and growing every day as more people walk away from checks and go towards plastic.