Debit Card vs Credit Card

[MarkBarbieri]

I just changed checking accounts. I asked for an regular ATM card (non-VISA, Mastercard, etc.). My banker told me that they could do it but that almost everyone uses debit cards these days. I asked what advantages using a debit card had over using a credit card and paying it off every month. He couldn't give me any.

So are there any? If you are the sort of person that pays off your credit card every month and incures no interest payments, is there any reason to use a debit card?

Advantages I can think of for using the credit card include:
1) Security - I'm limited to $50 in fraud charges by law. With a debit card, I believe that banks often have a policy limit, but after watching how banks change their rules, I'm not sure that I want to trust them.

2) Security - If someone does start using my credit card, I can work out it out with the credit card company without disrupting my cash flow account.

3) Float - with the credit card, I can keep the money in my hands for an extra 15-30 days.

4) Fewer checking transactions - I like to minimize the number of items that hit my checking account. They still have to go somewhere, but since I already have dozens and dozens of credit card transactions every month, I prefer that they go there.

So what are the advantages of using a debit card over a credit card? I'm curious as to why we appear to be way out of the mainstream for not using them.

 

[taylor3297]

I use my debit card instead of writing checks at stores. The ony time a debit card would be better than a credit card is if you need emergency cash. You can get cash back when purchasing items from somewhere like Targetwhile with a credit card you pay a fee and some start charging interest the moment you take out the cash against the credit card.

 

[wvjules]

If you use your credit cards wisely (PIF) there is NO advantage to using a debit card. Having said that, I would still get the Visa Check card instead of the regular ATM card. Heck, I didn't even know there were plain ATM cards anymore.

 

[robinb]

I don't think there is any advantage of using a Visa or M/C logo's Debit Card if you pay off your bill every month. I think that Security is the biggest problem. My mother's purse was taken from her grocery cart in the late afternoon and the thieves emptied out her checking account by using her DC as a logo'd Visa card by midnight. It was a PITB.

That being said, by debit card has a Visa logo because I could not get them to give my one without it. I *do* use my Debit card in stores in place of checks. My local grocery store of choice does not take credit cards, nor does the Aldi's (an occasional stop for me) so use my debit card every week.

 

[FireDancer]

You are actually asking two question. First, is there an advantage to the bank giving you a debit card instead of an ATM card and second is there an advantage to using a debit card over a credit card.

Depending on your bank there can be an advantage to getting a debit card instead of an ATM card even if you only use it as an ATM card in practice. I know for example that Bank of America will cover any fraud that originates from a debit card from day one. So if you debit card is used fraudulently you get your money back immediately while they investigate. If your ATM card is used fraudulently you are out the money until the fraud is substantiated. This of course depends on your financial institution.

I use a credit card for just about every bill I can (cell phone, DSL, DirecTv, etc) and pay it off every month. I use a Chase Freedom card which gives me either 1% or 3% cash back on every purchase. This means I get a 1% or 3% rebate on every bill I pay. I pay it off so that rebate isn't offset by any interest.

Now, if you have a Chase checking account you can use the debit card and get the same rebate, but I don't know if most banks do that. As a PP stated, this also give you the ability to hold your money in an interest bearing account until the bill is due. A debit card takes the money either immediately or at the end of the business day, so no float for you.

 

[MarkBarbieri]

...Having said that, I would still get the Visa Check card instead of the regular ATM card...

...My mother's purse was taken from her grocery cart in the late afternoon and the thieves emptied out her checking account by using her DC as a logo'd Visa card by midnight...

That's why I didn't want a VISA debit card. I don't want someone having that easy access to my checking account. By carrying a plain debit card, they'll need my PIN number to get money and they are limited to something like $400/day.

They really didn't want to give me just a plain old debit card. The banks must make a lot more money with VISA debit cards.

We don't write paper checks for anything anymore. Well, except for oddball stuff like having someone cut down a tree for us, a local kid doing a fundraiser, or stuff like that. Every store that we shop at takes credit cards.

 

[Angelhalo]

I don't think there is any advantage of using a Visa or M/C logo's Debit Card if you pay off your bill every month. I think that Security is the biggest problem. My mother's purse was taken from her grocery cart in the late afternoon and the thieves emptied out her checking account by using her DC as a logo'd Visa card by midnight. It was a PITB.

That being said, by debit card has a Visa logo because I could not get them to give my one without it. I *do* use my Debit card in stores in place of checks. My local grocery store of choice does not take credit cards, nor does the Aldi's (an occasional stop for me) so use my debit card every week.

Ditto. I use my debit card at Aldi because they do not take credit.

 

[seashoreCM]

I use credit cards a lot and do not carry a debit card.

I pay off the balances in full promptly and have not run into any need for a debit card.

Most debit cards that offer rebates or airline points require that you lie when the clerk asks "debit or credit" in order to earn the rebates, etc. By the way this lie is both kosher and legal at all times.

"Credit" means that the transaction is validated using your signature. "Debit" normally requires your PIN number but sometimes they don't demand it.

Some stores, I think Wal-mart is one, have had house rules where they won't honor your debit card when you say "credit".

 

[Disney-Kim]

Using your debit card as a debit card or a credit card is the same...

no float
taken from acct immediately
both protected by fraud limits

but....

with most banks your spending limit per day is much higher with a debit VISA purchase than using your PIN/debit. Lets say you want to buy a tv...your debit limit may be $500 per day but your debit VISA may be $5000 per day.

this is the #1 difference......that I know of

oh...and if you use VISA you get buyer protection from VISA...wouldn't know...never used it in 25 yrs.

 

[BernardandMissBianca]

I use my debit card (but it runs through as a credit) in lieu of cash but the only place I have really seen an advantage is Ikea, you get a 3% coupon or something like that if you use it as a debit.

After we paid off all our credit cards I kept two, the airline card and the iTunes card. I use it for gas, groceries, craft stores, and restaurants but write the amount out of my checkbook then pay it off at the end of the month. I may as well reap the benefits of my spending.

 

[georgina]

I just use credit and pay it off every month. I don't keep a lot of cash in my very low interest earning checking account, I transfer it between accounts when I need it to pay off the credit card. My D used a debit card before she had a credit card, now she uses that and pays it monthly. Easier to keep track of spending from the account when it is one payment and not a bunch of withdrawals..

 

[mamacatnv]

The places I shop the most often do not take regular credit cards but all take Debit Visa:

Costco
Winco
our local gas station
My hair salon

It would be more inconvenient for me to not have my Debit Visa and while I see your point about CC use, we are not that disciplined plain and simple. My DH is a spender and I want that money out of our account as soon as possible.

 

[LuvOrlando]

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