Hotel discourages use of debit cards

[disneysteve]

Wouldn't it be interesting to know how many people actually buy his stuff on a credit card?

I'd say the answer is zero. He has said multiple times that the website does not accept credit cards. He has aired calls from people praising him for not taking credit cards. He has read e-mails from people upset that they were not able to use their credit card to make a purchase at the website.

What gave you the impression that his site does actually accept credit cards?

[jpg7n16]

What gave you the impression that his site does actually accept credit cards?

His site admits that it's impossible to tell. See in blue.

From: http://www.daveramsey.com/store/faq/...ebitcardpolicy

Debit Card Policy

We understand what is running through your mind right now. "I can't believe Dave Ramsey is accepting credit cards! This can't be true! He's sold out on his principles!" But before you shave your head and run outside on your front lawn screaming, "The world is coming to an end, save yourself!" let's clear up a few things:

Number 1 - We are NOT accepting credit cards! Never have and never will. I mean, come on, do you listen to the radio show at all? Have you ever heard of a plasectomy? Please understand that accepting credit cards is something that will NEVER happen as long as Dave is still alive (and even forever after that!)

Number 2 - We are accepting DEBIT cards. We know that some people will go nuts when they hear that, but one factor is being overlooked. Debit cards do not work unless there is CASH available.

Number 3 - It was time for us to align our company policy with the advice we give our listeners. Dave recommends the use of debit cards for several items such as, Car Rentals, Hotel Reservations, and Internet Purchases. Dave personally carries and uses debit cards for online and phone transactions. One day we realized, "Hey, we are telling people that it's okay to use debit cards for purchases, but we're not allowing people to do that with us."

So don't worry! The Titanic is not rising, the sky is not falling and Ed McMahon is still not coming to your front door. We understand that some people will get upset over this decision. We also understand that some people will say we are selling out. However, all we are doing is simply aligning ourselves with the advice we give America.

DEBIT means CASH. CREDIT means CREDIT - and honey, we don't do that around here!

* The Lampo Group, Inc. and Dave Ramsey recognize that the Visa and MasterCard virtual monopoly on the debit card industries prohibits merchants from only taking debit cards. As such, it is impossible for us to ensure that every order has complied with our debit card policy. We trust that all of our customers hold EXCEEDINGLY high levels of INTEGRITY and maintain EXTRAORDINARILY high standards of TRUTH and HONESTY. Basically, anyone ordering from us who does not follow this policy is a shady and dishonest character. Don't put yourself in this group. You're better than that. Stick to our policy, NO CREDIT CARDS, and make us all happy.

[JoshuaHeckathorn]

I'd say the answer is zero. He has said multiple times that the website does not accept credit cards. He has aired calls from people praising him for not taking credit cards. He has read e-mails from people upset that they were not able to use their credit card to make a purchase at the website.

What gave you the impression that his site does actually accept credit cards?

DR has the following in fine print on his site under "Debit Card Policy":

* The Lampo Group, Inc. and Dave Ramsey recognize that the Visa and MasterCard virtual monopoly on the debit card industries prohibits merchants from only taking debit cards. As such, it is impossible for us to ensure that every order has complied with our debit card policy. We trust that all of our customers hold EXCEEDINGLY high levels of INTEGRITY and maintain EXTRAORDINARILY high standards of TRUTH and HONESTY. Basically, anyone ordering from us who does not follow this policy is a shady and dishonest character. Don't put yourself in this group. You're better than that. Stick to our policy, NO CREDIT CARDS, and make us all happy.

So, basically he hopes you don't use a credit card, but that doesn't mean he won't sell you a book if you're a "shady and dishonest" character and use one.

[disneysteve]

Very interesting. So it is impossible for him to not accept credit cards. I apologize. I didn't know that.

I still disagree with the whole policy, but it is his right to run his business any way he chooses.

[jpg7n16]

Yet by the same logic, it is impossible for those hotels to know if it was a debit or credit card used at check out

[disneysteve]

Yet by the same logic, it is impossible for those hotels to know if it was a debit or credit card used at check out

My debit card, which is my ATM card, clearly says DEBIT and Platinum Check Card on it. It wouldn't be mistaken by a credit card.

[elessar78]

I think it's a preventative measure on the hotel's part to ensure that their guests have a positive experience with them. I've had that happen to me before where a hold was placed on my funds from $600-1000. It's fortunate that I had surplus funds, but I can see people who don't and it would put a real crimp on their perception of that hotel, when it's just standard practice.

The no/limited credit card use lifestyle can be tough if you're not willing to commit to it. You essentially have to "self-insure" against the things life throws at you that credit cards tend to cover.

[disneysteve]

I think it's a preventative measure on the hotel's part to ensure that their guests have a positive experience with them. I've had that happen to me before where a hold was placed on my funds from $600-1000.

A lot of people don't realize how those holds work and how much they can add up. And I've never once heard Dave Ramsey mention this on his show. If you are not well off and don't keep thousands of dollars in your account, living on a debit card instead of a credit card could be nearly impossible. Fill your gas tank - the station puts a hold on the card when you start to pump not knowing how much gas you will buy. Go out to eat - the restaurant puts a hold on the card because they need to account for a tip when they first run the card. Reserve a hotel stay - hold. Rent a car - hold. Before you know it, the holds could be hundreds or thousands of dollars, so even though you may have what seems like plenty of money in your account, your accessible balance could be little to nothing.

[elessar78]

A lot of people don't realize how those holds work and how much they can add up. And I've never once heard Dave Ramsey mention this on his show. If you are not well off and don't keep thousands of dollars in your account, living on a debit card instead of a credit card could be nearly impossible. Fill your gas tank - the station puts a hold on the card when you start to pump not knowing how much gas you will buy. Go out to eat - the restaurant puts a hold on the card because they need to account for a tip when they first run the card. Reserve a hotel stay - hold. Rent a car - hold. Before you know it, the holds could be hundreds or thousands of dollars, so even though you may have what seems like plenty of money in your account, your accessible balance could be little to nothing.

Just to add... when do most of the events you mentioned happen? Probably when you're on vacation or a business trip.

[disneysteve]

Just to add... when do most of the events you mentioned happen? Probably when you're on vacation or a business trip.

True and it would really suck to be out of town and suddenly find that you have no money because a few holds were put on your account.

[DebbieL]

I've normally paid for my hotel in advance (getting deals online, etc), so I'm not familiar with how it works when you haven't prepaid. I know on check-in they swipe your credit card, but I don't think there has ever been a large hold put on my account. Maybe it's something like $100?

I've noticed that the gas stations in the US always put a hold on my card for about an extra $50 or $100. It takes about a week or so to disappear. It is quite annoying because you can't just pay at the pump for your gas if you are a Canadian. They always want you to input a ZIP code. Why can't they just let you use a CHIP pin code if they want to use something? Canadian postal codes use numbers and letters and are 6 digits long - impossible on the gas pumps. So, you have to go inside, wait in line, and try to guess what amount of gas you will need (on a rental car and with gas prices that are totally different than in Canada).

[wincrasher]

I don't know where some of you bank, but my BOA accounts have just the opposite problem.

I usually see a $1 charge pending for a debit card transaction, then several days later - sometimes three days - then the charge appears. I buy alot on my debit cards and never noticed a problem. I've never seen these "holds" for everyday items. I've once put a hotel charge on debit - and they did warn me that there would be a hold for 3 days worth of charges at check in.

I think it's foolish though to travel - hotel, rental cars, restaurants, airfares, etc - without the benefits and protections of putting it on your credit card. It's far easier to dispute charges if there is a problem. Plus you get to delay actually paying for a month to six weeks. Plus the bonus points!

If you can't manage your finances to the point that it freaks you out to put a trip on a CC, then maybe you shouldn't be traveling at all.

[baptiste.tyrell]

Yes he has his opinion about not using debit cards and many do the same..but i think there is no harm using a debit card( i think they are better than credit cards who charge a huge interest on the money)

[cicy33]

How about if the hotel advises you we are going to pre authorize your card for X.xx. I think that would solve a lot of issues. I also think that is fair. I don't have a credit card, don't want one. I have a debit card and use it all the time for hotels, flying, rental cars everything. I have never had a hold more than the cost of the item, thanks god! but I don't think it is fair that they put large holds on your card. One area example: fuel. There is a sign up at the gas pumps in our town that if we use a debit card they can put a hold on your card for up to 100. Well if I am only putting in 10.00 that is RUDE. I solve the problem and pay inside as credit (even tho it is a debit card). never a hold that way.

[disneysteve]

i think there is no harm using a debit card( i think they are better than credit cards who charge a huge interest on the money)

Sorry but this is a huge pet peeve of mine. You are assuming that using credit means paying interest. Dave Ramsey makes the same assumption and it simply isn't true. It is only true if you use credit to buy something that you can't afford.

It makes absolutely no difference if I make a purchase with my debit card and the money comes out of my account immediately or if I make that same purchase with my credit card and then pay the bill from that same account. The interest only comes into play if I make the purchase with credit and then don't pay the bill.

I have had a credit card since college. I'm 46 now, so that's about 28 years. I have paid my bill in full each and every month. I've never paid a penny in interest. Using a credit card does not mean going into debt. Using a credit card does not mean paying interest. It is just a convenience. If you can't afford to pay the bill in full when it comes, you shouldn't be using the credit card. If people would just stick to that very simple rule, a ton of trouble would be avoided.