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
Credit card fraud must be reported within 60 days to stay with in the
There are other differences, but the above is enough for me not to
have a debit card.
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withdrawn almost immediately when a purchase is made.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withdrawn fraudulently, the bank must return it within 10 days, but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.
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
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.
_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
#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.
My suggestion is that a good credit card offers you safety over both.
And it's usually free of charge to you.
** http://www.bburke.com/woodworking.html **
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.
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
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.)
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.
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.
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.
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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