credit card vs debit card traveling

[lauradis]

We are cash/prepay for vacations as much as possible people.

I was looking to rent a car, to drive on short vacation while ours is in the shop.

I'm shocked at all the hoop one must jump threw to us a debit logo card connected to your checking acct.

Why do rental companies feel that credit cards are better.

With a credit card I can always call and dispute charges, might be maxed out etc.

with a debit card its harder to dispute charges, but I might not have any money.

Maybe I'm stupid, but debit cards are linked to checking accts and most people put real money in there via direct deposit.

 

[lost*in*cyberspace]

It is often true that people who don't have credit cards aren't as credit worthy as those who do. Obviously rental car agencies have more problems with renters who use debit, rather than credit cards. You are free to use debit cards for rentals, just be prepared for stricter rules, which can be found on your rental car website.

 

[HookdonWDW]

Why do rental companies feel that credit cards are better.

With a credit card I can always call and dispute charges, might be maxed out etc. with a debit card its harder to dispute charges, but I might not have any money.

Maybe I'm stupid, but debit cards are linked to checking accts and most people put real money in there via direct deposit.

Because in terms of car rentals, credit cards are better for the rental companies. Credit cards offer more protection to the rental companies, and a better chance at recouping losses. If you are maxed out, your credit limit can be overridden in certain circumstances. With a debit card, a company can only be reimbursed up to the amount of money in the account. If you close out the checking account or keep it at a negative balance, there is no way to collect the money owed. The rental companies aren't as concerned about the $200 rental as they are concerned about their $40,000.00 vehicle.

People often think they can just call their credit card company and get the charges reversed. In my experience, it doesn't happen that often. Basically, the credit card company asks for a copy of the paperwork. As long as fraud didn't take place, the agency is paid. Not reading or agreeing to the terms of a contract does not equal fraud.

 

[bumbershoot]

\
Maybe I'm stupid, but debit cards are linked to checking accts and most people put real money in there via direct deposit.

I totally agree with you.

If you close out the checking account or keep it at a negative balance, there is no way to collect the money owed.

And the person has completely and totally messed up the rest of their financial lives, because messing with a checking account can cause you to not be able to get another checking (or savings) account for decades. I knew a woman in her late 40s who had bounced something like 5 checks in her young 20s; still had to get the paper check from work and take it somewhere to get it cashed, couldn't take part in direct deposit at all, because of that youthful series of errors. Banks don't mess around with checking/savings accounts! They are far more leniency to youthful stupidity with CCs. Trust me (and DH) on that one!

 

[DebbieB]

I'd be afraid to use a debit card. I've had credit cards compromised a couple of times, it was no big deal. The bank erased the fraudulent charge and I got a new card. The thing with a debit card is if someone gets in there or if there is a mistake, you could be bouncing checks or payments. It could be a huge mess.

 

[Shannon G]

I'd be afraid to use a debit card. I've had credit cards compromised a couple of times, it was no big deal. The bank erased the fraudulent charge and I got a new card. The thing with a debit card is if someone gets in there or if there is a mistake, you could be bouncing checks or payments. It could be a huge mess.

I second this thought. I used to use my debit card all the time, but back in October it was hacked while I was on vacation. My card was shut off, so I had no access to cash from my account for the rest of the trip (thank goodness I was travelling with friends), and had to wait 10 days for the bank to credit me back the $1400 that had been fraudulently charged to my account. Now I almost exclusively use my credit card, and then make a secure electronic payment from my checking account to pay my credit card bill.

 

[NotUrsula]

NEVER use a debit card while traveling; it is a great way to lose a whole lot of money. You are protected against fraudulent loss of anything over $50 loss when using a credit card, but there is no such protection for debit cards. If a professional thief gets hold of that number/pin he can easily duplicate the card and clean out your entire account.

Thieves like to target the cards of travelers because they reason that travelers tend to use their cards frequently and spend quite a bit, and are having fun and far from home and their usual routines, so it takes longer before they notice that there are charges on the card that they didn't actually make. Debit cards are their golden goose. Their favorite means of stealing the info is at gas stations; they attach devices such as scanners and cameras on or near the pump that record the information when it is used to pay for gasoline. Never use your debit card at a gas pump, no matter where you are. It is also a good idea to avoid using it at table-service restaurants as well; because it is easy to copy the information while the card is out of your sight. (You would be AMAZED at the number of people who write their PIN number on the back of the card. )

If you want to pre-pay your vacation expenses, just send the money to your CC company ahead of time, or get a "traveler's check" card from your bank. Traveler's checks (still called that though they now are issued in card form) are refundable if you lose them or if they get stolen. Just don't use your real debit card when away from home; that's terribly risky.

If you don't have a real credit card at all, I advise getting one for travel use. You can have the bank set the limit quite low (say, $1000) so that no one can get in major trouble with it, and you can pay hotels with cash or with a check for longer stays. (Hotels will almost always take a check on a longer stay if they have a card number for backup; they need time to submit the check for the room charges so that it will clear before you are scheduled to leave.) A cash-back gasoline-branded card will do nicely, and usually will garner you some good discounts and rewards. (I use my Amazon card at gas stations and while traveling; the double points that I get back finance my family members Kindle book purchases.)

 

[EskiLvr]

Debit/Credit cards are one of my areas of specialty in my Disney-habit supporting life (aka work), so this caught my eye.

Long story short: everything you've already read is on the money. In addition, you really want to be careful about how and where you use your Debit Card when traveling. Hotels and Car Agencies will *both* put large holds on your cards (which translates into holds on the funds in your checking account) even though a transaction hasn't "completed" (your stay isn't over, the car rental is still ongoing, etc, etc). This is a practice to protect the merchant against an unexpected increase in the amount of the transaction (or at least that's what the processing networks tell us banker folk). These holds can then keep you from being able to reach funds in your account - not a situation you want to be in when you're far from home.

Credit cards really are the way to go when traveling. If you "play the game" the right way, you can even find a card which will give you rewards that you can use for that trip or future ones.

No matter what you do, make sure you call your financial institution before you leave and tell them when you're going to be traveling and where. This allows for a travel exception to be placed on your card, which should prevent the anti-fraud software many of us run from blocking any transactions you attempt in error due to you being outside of your normal geographic area.

Good luck!