Discounts for Debit Cards?

[disneysteve]

Entice you with lower prices, and then advertise you to death. Especially those that get an e-mail account.

This one is relatively easy to get around. Either don't give them your primary e-mail address or the first time you get an e-mail from them, designate it as spam and from then on it will go to your spam folder.

[wincrasher]

Generally I'm leary of all these "reward" programs. You have to be on the ball with all their rules to see any benefit.

It's pretty easy to find gas that is cheaper than the big chains with rewards cards. I can usually save alot more money going to Costco than buying stuff at Target and Walmart and use their cards.

I like the idea of getting a discount to use debit. It could be alot more savings than using a card or the rewards you reap. We all pay higher prices for all these "financial services" whether we use them or not.

The only down side to debit, is that the consumer protections can be lower. With credit cards, you have a greater window to dispute charges and have a bit more leverage with merchants. In many jurisdictions, debit cards follow the same rules as using checks.

[littleroc02us]

The only down side to debit, is that the consumer protections can be lower. With credit cards, you have a greater window to dispute charges and have a bit more leverage with merchants. In many jurisdictions, debit cards follow the same rules as using checks.

Actually, that isn't true, I have a Visa Check/Debit card and because it has a Visa logo on it, it has the same Zero liability protection as a Visa Credit card does. In fact they are required to return the funds to your checking account within 5 days. Just recently we had Fraud on our Discover card that we hardly use and they had to shut down the account and we had to wait a week to get a new card. So, luckily we didn't rely on it to pay for our hotel and rental car.

[disneysteve]

The only down side to debit, is that the consumer protections can be lower.

Another downside is that with debit, the money comes straight out of my checking account. That means I need to keep a larger balance in the account and keep a much closer watch on what we are each spending to avoid overdrawing the account. That is never a concern with credit since the bill doesn't get paid immediately. With credit, I have plenty of time to transfer funds from our interest-bearing accounts to the checking account before the bill needs to be paid.

If I was single, it wouldn't be as much of an issue since I'd be the only one using the account. Married, though, there are two of us making transactions. That makes keeping track more difficult.

[wincrasher]

Actually, that isn't true, I have a Visa Check/Debit card and because it has a Visa logo on it, it has the same Zero liability protection as a Visa Credit card does. In fact they are required to return the funds to your checking account within 5 days. Just recently we had Fraud on our Discover card that we hardly use and they had to shut down the account and we had to wait a week to get a new card. So, luckily we didn't rely on it to pay for our hotel and rental car.

Actually, fraud protection like this is at the generosity of your bank that underwrites the card. It's not required by law and can be changed just like any other terms. Credit card fraud protections are largely spelled out in law.

Disputes with a merchant are what I was primarily talking about.

[disneysteve]

they are required to return the funds to your checking account within 5 days.

Big deal. In the meantime, my account would be cleaned out for 5 days. Checks would be bouncing. Automatic payments would be getting rejected. That would be a mess to clean up.

If there is fraud on my credit card, I'm not actually out any money while they investigate and correct the issue.

[littleroc02us]

Big deal. In the meantime, my account would be cleaned out for 5 days. Checks would be bouncing. Automatic payments would be getting rejected. That would be a mess to clean up.

If there is fraud on my credit card, I'm not actually out any money while they investigate and correct the issue.

Like I was saying previously my bank automatically sets a daily limit of $500 unless I upgrade that for a day. I also, keep most of my funds in savings and can transfer it in a second from the internet. They would only get a small amount and that wouldn't be a big deal for someone like me who has plenty of reserves to fall back on. They cannot clean out my account. Also, even if I don't transfer the money my checks would never bounce because my Credit Union is so awesome that they will transfer money from my savings for free to cover any difficiences.

[littleroc02us]

Actually, fraud protection like this is at the generosity of your bank that underwrites the card. It's not required by law and can be changed just like any other terms. Credit card fraud protections are largely spelled out in law.

Disputes with a merchant are what I was primarily talking about.

Again your wrong, here is the website to prove it. Read #1. It is the same for cc's and debit cards.

Zero Liability | Personal | Visa USA

[disneysteve]

Like I was saying previously my bank automatically sets a daily limit of $500 unless I upgrade that for a day.

Do you check your account activity daily? I certainly don't. I check once a month when I balance the checkbook and take a quick look if I pay a bill online. Someone could get my debit card and charge $500/day for a week or two and I'd have no idea.

[Jeff78703]

It's so interesting this is posted. I just went shopping for a party at a liquor store called Spec's here in Austin and they offer all of their items at a 5% discount if you pay with cash or credit. Haven't seen that very often besides gas stations.

In another angle, have you heard the argument that credit card rewards are a regressive tax on the lower class? I heard someone argue that because lower income folks have less access to low-interest credit they pay the same price in cash as someone else pays using a credit card. But the store has to raise the price slightly to cover the credit card fee. In essence, the person not using credit subsidizes credit users. Interesting argument - what do you all think? It does make one think about it from an equity perspective...

[littleroc02us]

Do you check your account activity daily? I certainly don't. I check once a month when I balance the checkbook and take a quick look if I pay a bill online. Someone could get my debit card and charge $500/day for a week or two and I'd have no idea.

If you only knew. I have an Excel spreadsheet that tracks bi-weekly budgets from January thru Decemember and every year we get better at tracking everything from birthdays too car expenses. We do zero budgeting where every dollar is accounted for and if there isn't anything left in the category we either have to reorganize all the categories to come up with money or we just don't spend. For example just last night I ran out of Axe spray and our Target fund has already been spent for the bi-week, my wife says "I guess you have to wait now till next Wednesday". Which is true, but luckily I have backup deodorent. I am religious about balancing our checkbook daily and checking my online bank accounts. Believe I would notice anything suspicious in our account.

[disneysteve]

In essence, the person not using credit subsidizes credit users.

This is true. Businesses have to price their goods and services accordingly to account for credit and debit card merchant fees (other than the gas stations that charge 2 different prices). I reject the idea, however, that it somehow targets the lower class. It affects everyone, rich and poor.

[Volkov]

We use the barest minimum amount of credit cards because it helps build credit - otherwise, it is debit all the way. So, truly ambivalent about this development.

Although, I would be happier if stores offered discounts if you paid with cash or debit, especially for bigger purchases. Rewarding fiscal responsibility and all that good stuff!

[disneysteve]

Although, I would be happier if stores offered discounts if you paid with cash or debit, especially for bigger purchases. Rewarding fiscal responsibility and all that good stuff!

What does how someone pays have to do with "fiscal responsibility?" We are very fiscally responsible and pay for almost everything we possibly can with our credit cards.

[Volkov]

What does how someone pays have to do with "fiscal responsibility?" We are very fiscally responsible and pay for almost everything we possibly can with our credit cards.

Maybe I am old fashioned, but I consider buying anything beyond your means fiscal irresponsibility. My comment was redirected more at folks outside this forum - how many people truly get something on their credit cards and pay it off immediately? In my personal experience, not very many.