10 Places NOT to Use Your Debit Card

**PaydayLoner** · 03-21-2010, 05:29 AM

For the ones that are about theft, I wonder if it makes a difference whether the debit or credit card gives access to more money?

In other words, if someone has $1,000 in their checking account and $10,000 available on their credit card, and someone else has just the opposite, is it still best for both of them to use a credit card, if they're concerned about the number being stolen? Seems to me it would be best to use the card where thieves could potentially get access to the least money, if you have equal protection to get your money back on either card.

**kork13** · 03-21-2010, 06:31 AM

Originally posted by PaydayLoner View Post

...... if you have equal protection to get your money back on either card.

that's just the thing... Debit cards do not have nearly the protections that CC's do. I can't recall everything off-hand, but the difference is significant. Plus, while you fight the CC, the contested charges are not your responsibility. While you fight a debit card, the contested charges have already sapped your cash.

I think alot of the items on this list are here because of their tendency to put large holds on a debit card. I know particularly for hotels, car rentals, restaurants, and gas stations, the tendency is to put a hold (making that money inaccessible) on sometimes twice what the charge is, to ensure that you have cash enough to cover their charge plus tips, additional fees/charges, etc.

So imagine this scenario: You're on vacation, and budgeted to spend $2500, which is currently in your checking account. You bought your plane tickets ($1000 for two) with your debit card, and also pay for a rental car ($300 for a week, but they put a hold on $500--just in case). You check into your room with your debit card, and they put a hold on another $600 (although your final room bill, assuming no room service, should be about $400). Midway through, you fill up your rental with gas for $20 (station holds its standard $75). Each night for your week-long vacation, you go out for dinner, charging an average of $50 (though they hold a full $75 each time). By now, your checking account has $2700 held, even though you've actually only spent $2070. Now even though you've not actually spent over your checking balance, because of the holds on your account (which could take up to a week to be released), you're getting hit with overdraft fees and insufficient funds penalties. And that's not even counting your sightseeing and souvenirs.

Using a credit card, this problem is normally a non-issue.

**cicy33** · 03-21-2010, 09:09 PM

While I do understand the arguments here I only use my debit card. We have one small cc and that is being paid off within a month. I have used my card for most of the purchases listed with little to no trouble. Bought plane tickets, no hold, simply the cost of plane tickets. Keep in mind I bought plane tickets at least two weeks in advance. so even if there was a hold it was gone by the time I left. rented a hotel room for one night, $50 hold, put gas in my car, no hold, on this one half the time I show a $1 charge for like 3 days. drives me nuts. I have never had a gas station hold an additional 75.00 on my card when I get fuel. Never. got a rental car, $150 hold, rental was for 4 days. that was also the cost of the rental price. Very good deal! I have experienced the restaurant thing though that is fairly new. Most of the people that come to where I work are really mad when their charge shows and additional 20% for several days. We have tried to explain but they think we are lying, the first time, then they get it. This never used to happen to me but have noticed it lately. I would personally plan to take some cash with me to cover some costs like food or maybe even fuel. The dangers of using a credit card for some of these things is the paying it off when you get home. If you plan in advance for some of these costs you can pay for them in advance and either avoid the holds or they won't affect you quite as much. I find most people will carry about 100- 200 when they are on vacation. That should pay for a few dinners. I have not used a credit card to pay for anything like that in over 5 years and have not experienced any problems. I think it is like any other thing, you have to watch it and be careful. My bank actually calls me if there are unusual charges on my card. and a great advantage to debit card is they can only get so much. Once it is empty it is empty. I personally don't keep much in it. When I am ready to pay a bill I deposit the amount and pay it usually the very next day when it clears.

**wincrasher** · 03-25-2010, 05:43 AM

Many banks offer protections to debt cards that are in excess of what the law requires. You need to check with your bank.

I always use my debit card at the grocery store and gas station. Everywhere else you are better off with the protection of the credit card if the vendor acts badly or the merchandise is shoddy.

If you are cutting it so close that "holds" are crimping your style, you really need to question weather you can really afford to be doing what you are doing.

10 Places NOT to Use Your Debit Card