O/T: RE: Credit Card v Debit Card

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SFWIW, some interesting info this afternoon on the boob tube:
In the event your card # is stolen and used:
Debit card fraud must be reported within 48 hours to stay with in the $50 liability.
Credit card fraud must be reported within 60 days to stay with in the $50 liability.
There are other differences, but the above is enough for me not to have a debit card.
Lew
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Lew,
You give one very good reason to go with a credit card instead of a debit card. I can't even think of one good reason TO use a debit card.
In addition to the liability issues that you mentioned above, debit cards give vendors direct access to your bank account as money is withdrawn almost immediately when a purchase is made. If money is withdrawn fraudulently, the bank must return it within 10 days, but you're the one who has to jump through hoops to make it happen.
Also, credit card issuers are required to allow you to refute a charge for up to 60 days in the event of a problem. Debit card issuers aren't required to do this, and their policy on this varies from bank to bank.
Just remember to pay off that balance EVERY month.
Joe
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There is no reason to use a debit card. But in cases where someone does not have a credit card, can not get a credit card, or is financially irresponsible, a debit makes a lot of sense.

Not only that, but using a credit card protects your purchases. You get limited protection with a debit card, PayPal, a check, or cash. But, most shoppers tend to spend more with a credit card.

Credit card companies HATE that. Credit card companies hate me!

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wrote:

I never use cash anymore except for Tim Horton's where debit cards aren't accepted. I've never had a problem with missing money or any unauthorized transactions.
I would say a debit card is better than a credit card with regards to financial responsibility. It's easy to overspend with a credit card but a debit card is directly tied to your bank account.
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It's easier than writing checks, and can be used on the Internet for immediate payment.
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Maxwell Lol wrote:

_WHY_ in the world would you choose a DEBIT CARD over a credit card on the Internet? <G>
I'd rather use a credit card in that situation. If something goes awry I have much more time to straighten it out, and the problem in progress won't cause things like my mortgage payment to bounce.
Last year, I had two instances where there were big time problems on my cards:
#1.) Someone used my credit card number to buy $7500 worth of stuff from an eBay seller, to be shipped abroad. One phone call, credits & a new account number, and it's and all cleaned up on my end.
#2.) A restaurant's bank screwed up and billed me 16 times for the same $71 meal. Again, one phone call, no more problem!
I'm sure glad I wasn't stressing over my checking account, which is linked to a savings account, either time. ;^)
We do _everything_ on a "bonus" credit card, which gets paid in full by a check sent by my credit union's free "bill pay" service. Each credit card transaction goes into Quicken, and therefore out of the budget, as it's "spent" (just like a check), so the money is automatically available when the bill is cut.
No fees, no finance charges, and we get ~ $800-1000/year back.
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Given a choice between a paper check and a debut card, I'll use a debit card.
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My suggestion is that a good credit card offers you safety over both. And it's usually free of charge to you.
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Sigh.... And for the third time, I will state that a credit card was not one of the choices.
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Maxwell Lol wrote:

Point taken!
There are actually places that will take a debit card and not a credit card, or is this a personal choice to not use credit cards?
I promise, if it's a personal choice, I'll not question it, as I've made my point earlier. <G>
If it's the former, that's odd.
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My personal reasons are not important. I can name several reasons for people to use debit cards over credit cards.
Budgeting (limiting spending) Tracking expenses based on account Need to use an existing account Desire to make a purchase now instead of waiting for a new card Desire to pay immediately instead of delaying (and forgetting the bill will be due at the end of the month) Privacy (One might want to buy an item and surprise the spouse, who pays the bill on a shared credit card) The seller prefers the buyer to use a debit card. (I haven't seen this myself) The credit card was lost, and the user only has a debit card right now. One may not have had a credit card in their wallet at time of purchase, but they have an ATM card. One may have a poor credit score, and cannot get a credit card. The user may not be responsible enough for a credit card. (Some kids have no concept of credit) The max limit can be changed at any time. (parents can add more money into an account) The seller may only ship to the address on the card, which is different than one on a credit card. (Debit cards can be associated with PO Boxes, etc. Credit cards seem to be stricter.) etc. etc.
I was responding to the comparisons of debit cards to credit cards, and in particular to the phrase "I can't even think of one good reason TO use a debit card." Debit cards are similar to credit cards, but not identical in all respects.
Don't assume that users of Debit cards have poor credit.
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Maxwell Lol wrote:

Agreed. "Personal choice" is good enough. <G>
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Somebody wrote:

credit
IMHO, a debit card is the same as cash.
If a merchant will not accept a credit card, but will accept a debit card, then the merchant better offer a cash discount or we probably won't be doing business.
Lew
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Do banks charge the retailer for transactions on a debit card and, if they do, is it the same charge as for credit cards?
FoggyTown
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Yes
No.
The fees vary. I'm looking at a chart that lists 28 different fees for debit cards, depending on where used.
A credit card company may charge a restaurant (1.19% + $0.10) for a debit card. A credit card may range from (1.5%+$0.10) to (2.20% + $0.10) per transaction.
The merchant may also have to pay a per-transaction fee as well to the company that processes credit cards for them, as well as monthly fees. I pay $10 a month, and if I want Amex, another $5 a month, just to have the ability to process credit cards.
Even processing checks cost a business money.

Not to the merchant.
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FoggyTown wrote:

If they do, it's not my problem.
Debit cards are a con job by the banking industry, IMHO.
Lew
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"Lew Hodgett" wrote

The "banking industry" is a con job to start with ...
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I hate banks. I deposit a (state-government issued) check and they put it on hold for 5 business days, but if I cash the same kind of check I get my money immediately. Over the years I learned you have to carefully read the bank-policy booklet.
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I prefer them over writing checks.
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"Maxwell Lol" wrote:

To each his own.
They are still a con job.
Lew
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