Debit or credit?

[Deb in IA]

Which do YOU use?

We have ALWAYS used credit cards, primarily our VISA United Mileage Plus card, because we get miles for our purchases.

We also have an AmEx that we use primarily for travel (booking airline tickets).


We pay our entire balance in full each month, and never carry finance charges.

We have never used debit cards.

An very interesting piece on debit cards was on GMA this morning. For one thing, I learned that there are direct and deferred debit cards. The direct debit requires only your signature, and the merchant pays for the transaction fee. The deferred debit card requires your PIN number, and YOU pay the transaction fee.

There apparently is a mega$$$ lawsuit where banks are suing to recoup lost processing fees. This has led to Wal-Mart no longer accepting debit cards that require a signature (I didn't know that).

In addition, lost or stolen debit cards may not have the same protections that credit cards have.

Here's the full story:
http://abcnews.go.com/sections/GMA/MellodyHobson/Debit_card_dangers_hobson_040218-1.html



I'm sure that if I mangled some of the above information (finances and accounting generally make me ), someone like Dan or Dana will correct me.

So what do you have in YOUR wallet?

 

[shep]

I use the credit option on my debit card... to only buy gas...
everything else is on credit cards that are paid off each month...

 

[Kimberle]

I would never ever use a debit card. My bank sent me one & I promptly distroyed it.

I charge everything, gas, groceries, etc. I pay my card off in full every month. I have not run a balance in over 15 years. I use "their" money to get "my" FF miles! I've been averaging about 1 free domestic ticket a year.

 

[CBRorBust]

I also use the Credit option on my Debit Card.

I won't buy into Credit Cards because of what I have seen my older sibling go through. If I don't have it in the bank to pay for it, I don't need it. I do have a few department store cards but I pay those off in full every month when and if I use them.

 

[mommytotwo]

I have both a credit and a debt card, but just don't use my debt card anymore. I'm waiting for my Disney credit card to come in.

 

[Kermit]

I use my debit card about 95% of the time. We really only use credit cards for things like hotel reservations and occassionally for really big purchases. We have a Hilton Honors AmEx that gives points, so we do put the big stuff on there.

 

[mickeyfan1]

When you use a CC, there is a fee per transaction that the merchant pays. Some companies charge more than others, which is why AMEX is not as widely accepted as come other CCs, their per transaction fees were quite a bit higher. That being said, you, the consumer, pays the fee, every time. It is included in the cost of the goods you buy. It is a cost of doing business for the merchant, and in order to make a profit, those costs are passed on to the purchaser. Some loss leaders may decide the cost of doing business with certain CC Companies is too high, and rather than boost their pass through costs, they choose to not accept the card.

We are gradually paying off all our CCs. I like to use my AMEX for the rewards points, I use it to pay my phone bill, my cell phone bill, etc. I have to pay them every month, so why not get a little reward for doing it?

Edited for poor spelling.

 

[Dan Murphy]

Originally posted by Deb in IA
.........In addition, lost or stolen debit cards may not have the same protections that credit cards have......

I use debit for most daily purchases and most online purchases. As for protection, this is from my debit cards website......

Visa's Zero Liability policy, protecting against unauthorized signature, phone, mail and internet purchases

 

[olena]

We'll never use a check card. I've seen too many friends and relatives get their bank accounts cleaned out with no recourse.

 

[Toby'sFriend]

I have both but I very rarely use my Debit card.

My Debit card has 100% protection. But I've heard to many horror stories from people of how it can take weeks to get them to put the money back into your checking account if something were to happen.

I have had unauthorized transactions on my Credit Cards before. Once a waitress from On The Border stole my numbers and was making long distance phone calls to Australia. American Express took care of it very quickly. They deducted it from my bill while they investigated and I never had to pay the charge or any accrued interest.

 

[helenabear]

I use pretty much only credit card. I just feel that I have better recourse with everything if something were to happen with my credit card. That and when I was using solely debit, I had trouble using it (offline systems or something) at several retailers. I do pay my credit card off every month though and I still think if I don't have enough money in the bank, I won't spend. I find it much easier to track spending that way too.

 

[Alice28]

I use my debit card a LOT and have never ever had any sort of trouble. I don't know if because we bank with a credit union it makes a difference on fees and stuff. But, if it's something big, like a trip reservation or something I want points for, we use our credit cards, usually AMEX or Discover as I like their rewards. We ran into trouble with credit cards our first few years of marriage, so I do not use them for every day expenses or monthly bills.

 

[ILUVDXL]

I saw that this morning, Deb. (running late as usual.) I use our debit card for everything, especialy since working for a bank I pay no fees. When going on vacation I just transfer money out of our vaction fund into checking and have at it. I love the idea of not having to deal with a credit card bill at the end of the month.

P.S. Joe just called. He hit a $100.00 scratch ticket this morning and is taking me out to dinner. Got to love that psychologist!)

 

[seashoreCM]

All debit cards work both ways, direct and deferred. If you refuse to give out the PIN (recommended) the transaction must go through as deferred. However the money comes out of your checking account almost as fast.

The difference is that the transaction goes through the ATM network for direct and through the credit card system for deferred. This part is invisible to you.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm

I never use debit cards unless there is some promotion or bonus such as airline miles not offered by a credit card. Exception, the Paypal debit card which is the easiest way to utilize for other purposes the balance that builds up in the Paypal kitty from selling stuff on eBay.

 

[my3kids]

Wal-Mart will accept VISA branded Debit cards. They will NOT accept MasterCard Debit cards that are processed with a signature. They will take MasterCard if you use the PIN.

 

[Pop Daddy]

I switched to debit

 

[DVC-Don]

Mostly credit here and very little cash. Only carry a balance a couple of times a year. Usually right after Christmas and a WDW trip.

 

[ead79]

I use both (both my credit cards and debit card are Visa). I typically use my credit card for larger purchases and my debit card for routine purchases like gas and groceries. Since I have the Disney Visa I try to earn as many reward dollars as I can.

I used to work at a bank, and it's a common misnomer that you are not protected against theft with debit cards. The bank's fraud department will follow up/prosecute those thieves as opposed to Visa's fraud department, but you are protected either way. It is less of a hassle to get the money back with credit cards though.

 

[Blondie]

It took me a while to get comfortable using a debit card! Now I have no other option, we've closed all the credit card accounts (and believe me, there were many!) and cut up the cards.

Now all we have is debit, cash or check. The transition wasn't easy, but we had gotten out of control. It was the only cure for us!

I have never been charged a transaction fee when using my debit card, whether I use my PIN number or not. Sometimes I have to sign a receipt, sometimes I don't. But I've never been charged a fee either way.

 

[DocRafiki]

I use credit every chance I get. Never used debit.

Reasons--

-rewards
-convenience of use (over cash & checks)
-record keeping (monthly bill)
-security (fraud)
-security (emergencies)

I love my credit cards. If I go out, I have my ID, credit card, and health insurance card in a pocket. Even if I lose my purse and get separated from my group, that's all I need to take care of myself.