Use credit card at stores instead of debit?

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GP813
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Re: Use credit card at stores instead of debit?

Post by GP813 »

Frank Abagnale the reformed conman who's lifestory inspired Catch Me If You Can advises against ever using a debit card and insists people should use a credit card for best practices.

https://www.youtube.com/watch?v=vsMydMDi3rI

He speaks about this at 43:15
TheHouse7
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Re: Use credit card at stores instead of debit?

Post by TheHouse7 »

hicabob wrote: Sun Jul 25, 2021 1:34 pm Winco, a boglehead type supermarket in the PNW, just takes debit cards or cash. It's the only reason I carry my debit card.
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invest4
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Re: Use credit card at stores instead of debit?

Post by invest4 »

Ivygirl wrote: Sun Jul 25, 2021 1:29 pm
invest4 wrote: Sun Jul 25, 2021 11:52 am I do not use debit for all the reasons mentioned by others with the most compelling being that it is someone else's money at risk vs your own. If the bank sends me a debit card, I simply cut them up. An ATM card is potentially useful and we have one somewhere, but I couldn't tell you the last time I ever used one.

My sense is that debit cards are very popular amongst younger people. I ask my own kids about this and the two main reasons I hear are:

* Friends use it because their parents told them it will help them avoid taking on credit card debt (I believe often reflecting the parents own experiences).

* It's what the banks give you when you establish an account

Of course, another valid reason is that the kids may be too young to have their own credit card yet. In the case of our family, we add kids as authorized users (typically at age 15) on one of our credit cards (same card for all the kids), They are each assigned their own number by the credit card company so tracking of spending is easy...such as in instances where they need to pay us back for a purchase for example. We strongly believe this setup and the discussions that accompany it is a vital foundation for understanding and responsible use of credit.

Ultimately, one must simply be informed and then make their personal choice...such as in the case of Nisiprius.
Don't you think, in general, it is a good idea for young people to manage their own money before they try to manage credit? There are a lot of financial differences between being a kid, a college student, an independent adult. Learning what things cost. Learning what can be put off and what must be paid now. Surprise: the 6-month car insurance bill is due, you forgot. Roommate or significant other asks you to cover some expenses this month, they'll pay you back. An optimistic, obliging and kindhearted young person might pull out a credit card for that, relying on the "float." We people older than 25 can see what's coming from that. In a few years, with experience of the world, our young person will be wiser, but understanding compound interest - either being on the receiving end, or on the paying end - is not intuitive. Being on the paying end is brutal indeed, it's a real danger.

Young people are smart to stay away from credit for daily expenses. It's easy to dig a hole that can devour years. Your children of course are an exception because you are teaching them in a gradual, managed manner. but many young people have no one to do this for them.
Absolutely! Fully support your comments about broader learning and step-wise building of financial knowledge to prepare young people for the future.
My response was simply more focused on the topic raised by the OP (credit vs debit) and did not go much further than that. I'm a strong advocate and as you suggested we start learning from early on and regularly discuss financial topics that make sense for their ages and interest. Credit is just one of them.

Fortunately, there are other related posts that come up from time to time and hope that everyone contributes and gets something out of them...for themselves and their children...such as this one posted in May:

Teach Your Children Well - Financially
viewtopic.php?f=2&t=349394
criticalmass
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Re: Use credit card at stores instead of debit?

Post by criticalmass »

Ivygirl wrote: Sun Jul 25, 2021 1:29 pm

Young people are smart to stay away from credit for daily expenses. It's easy to dig a hole that can devour years. Your children of course are an exception because you are teaching them in a gradual, managed manner. but many young people have no one to do this for them.
Credit isn't the problem, misusing things is a potential problem. I got my first credit card when I was 19-20, a Discover Card because that was a rare card that offered cash back at the time. It's a good thing I did, and it was a great experience to teach myself personal finance. I set it up to direct debit the bill automatically on the due date, mainly so I didn't have to waste money on stamps or worry about forgetting to pay anything. (Discover wouldn't actually debit the bank account until a few days after the due date, and I enjoyed the extra float although it didn't add up to much, even with the 4-5% savings interest rate in those days. With only one credit card, I just used it as one of the six pre-authorized debits allowed from my savings account. )

I always kept a close eye on the bills. Using that credit card built up a credit history that was extremely useful at getting the best insurance rates and getting my first mortgage a few years later. Credit cards are good, just like electricity is. Use both carefully.
Last edited by criticalmass on Sun Jul 25, 2021 10:08 pm, edited 1 time in total.
JackoC
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Re: Use credit card at stores instead of debit?

Post by JackoC »

nps wrote: Sun Jul 25, 2021 5:53 pm Not so much a credit vs debit card consideration, but there was a recent article by Jason Zweig on credit cards vs physical cash (may be paywalled):
Dozens of studies have shown that consumers using credit cards rather than cash are less likely to remember how much they spent, take less time deciding what to buy, are more willing to pay high prices and make a greater number of purchases. They also exert less self-control, buying more junk food, luxury goods and other impulsive items.
Presumably these behaviors can result in higher spending on cards even without carrying a balance.
This is the conventional wisdom, not starting in any recent article by Jason Zweig (who sometimes makes useful points). It's backed by studies.

But at best social 'science' studies if well constructed (a big enough 'if' IMO to justify the scare quotes for the whole field) show what's true of people in general. No particular person is 'people in general'.

And then this particular article seems to make a now obsolescent comparison, CC v cash. It seems pretty far fetched to say people 'are more willing to pay high prices' who can look all around the internet for best prices compared to people limited to brick and mortar stores because they want to pay literal (green pieces of paper) cash. B&M stores aren't disappearing because they have generally better prices than the internet. And if 'cash' is meant to include debit cards, color me very skeptical that a study was correctly constructed to pick up a willingness to pay a higher price at website A, or look among fewer websites because the person planned to use a CC rather than DC. Especially if you factor in cashback. I shop online with BOA CCR card at 5.25% CB. It's not plausible to me to say I'd achieve >5.25% better prices on average if I shifted to using a 0% DC.

The more defensible long standing claim is that people spend more $'s, for more stuff (and services), if they use CC. The claim about paying higher prices per unit is a lot more doubtful IMO, certainly as it applies to us. But just paying more $'s to get commensurately more goods and services is only a problem for people who need to spend less money. A lot of people do. We don't. So it's back to possibly generally valid findings of social 'science' v *individual* choices in personal finance.
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Re: Use credit card at stores instead of debit?

Post by Tubes »

criticalmass wrote: Sun Jul 25, 2021 10:06 pm
Ivygirl wrote: Sun Jul 25, 2021 1:29 pm

Young people are smart to stay away from credit for daily expenses. It's easy to dig a hole that can devour years. Your children of course are an exception because you are teaching them in a gradual, managed manner. but many young people have no one to do this for them.
Credit isn't the problem, misusing things is a potential problem. I got my first credit card when I was 19-20, a Discover Card because that was a rare card that offered cash back at the time. It's a good thing I did, and it was a great experience to teach myself personal finance. I set it up to direct debit the bill automatically on the due date, mainly so I didn't have to waste money on stamps or worry about forgetting to pay anything. (Discover wouldn't actually debit the bank account until a few days after the due date, and I enjoyed the extra float although it didn't add up to much, even with the 4-5% savings interest rate in those days. With only one credit card, I just used it as one of the six pre-authorized debits allowed from my savings account. )

I always kept a close eye on the bills. Using that credit card built up a credit history that was extremely useful at getting the best insurance rates and getting my first mortgage a few years later. Credit cards are good, just like electricity is. Use both carefully.
Back in the dark ages when I was in college, one could not get a national named credit card at that age and non-wage history. So, one started with department stores. My first card was a JC Penney card with a $200 limit. I used it. I learned. It was a good way to understand the game. Once I got a job, this history allowed me to easily get a national card with a limit of $1500 or so. Once I developed a history, they raised the limit appropriately.

I give this history to compare to today where it seems if you a breathing human (and sometimes even a dog or cat), you can get a card. The bar is pretty low and this can snag an awful lot of vulnerable people.
SaucedUp
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Re: Use credit card at stores instead of debit?

Post by SaucedUp »

In my personal opinion, there is no real reason to use debit over credit.

Even if you set aside the very real risk of your bank account being drained to $0 (most of which you’ll likely never recover). Skimmers are everywhere and only becoming more stealthy. I’d rather have someone steal the credit card companies money than mine

Credit card companies are literally paying you just to use the card and pay it off. So long as the best for doesn’t tack on a 3% fee or whatever.

I just had a fence installed and paid in cash because the fee would be more than the rewards.

I have 6 credit cards of various types and rewards to use when the time is proper.

Not only are you losing out on free money, you’re not getting any benefit to your credit score by having more open lines and unused credit.
Last edited by SaucedUp on Mon Jul 26, 2021 6:12 am, edited 1 time in total.
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Re: Use credit card at stores instead of debit?

Post by SaucedUp »

Fraud protection for debit cards is fine at major banks but what about the ~128M people at credit unions?

It is EXTREMELY difficult and time consuming to get your money back and even more so at small to mid sized credit unions and in some cases you can't get all back. Not to mention weeks to months worth of back and forth jumping through hoops and if the bank can't offer you a temporary credit to cover the loss, then what?

Why even risk it at all? There is no benefit to a debit card if you have impulse control. Plus, if you're overspending on a credit card, you're probably going to do the same thing with a debit card.

It's not like you're a totally financially savvy person until you get that credit card and then go wild. People overspending have behavior patterns that follow regardless of the type of payment.

We should be more worried about teaching kids as early as middle school how to properly use the tools at their disposal.
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Tamarind
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Re: Use credit card at stores instead of debit?

Post by Tamarind »

Yep, I have one debit card which is locked using the bank's controls app to only be usable at an ATM.
criticalmass
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Re: Use credit card at stores instead of debit?

Post by criticalmass »

NYCaviator wrote: Mon Jul 26, 2021 7:03 am

Also, the claims that "your account will be wiped out" and "you'll never get the money back" if you use debit cards are completely overblown and mostly untrue. Consumer debit cards have a lot of legal protections. Debit cards are also very safe if you use mobile wallets like ApplePay or the google equivalent.

Food for thought. I just want to offer a different perspective from the folks who think credit cards are the best thing since sliced bread. They aren't always the best thing for everyone.
Sure, you may get reimbursed after debit card fraud. I was. But that was after the mortgage payment and two other bills bounced because money was taken from the checking account. The “fraud guarantee “ doesn’t do anything to restore the many days spent fixing problems and hours and hours on hold or talking to phone reps, explaining the situation for the thirtieth time. It’s extra fun when you are dealing with late fees, declined payment fees and more hassles from billers who didn’t get paid because your checking account was cleaned out. More hassles and time to deal with.

I have since lowered the purchase amount allowed to $1 or replaced with ATM cards, as I didn’t even use debit cards for purchases.

Apple Pay may be convenient, but adding another transaction method doesn’t do anything to reduce fraud risk of the others.
criticalmass
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Re: Use credit card at stores instead of debit?

Post by criticalmass »

SaucedUp wrote: Mon Jul 26, 2021 7:12 am Fraud protection for debit cards is fine at major banks but what about the ~128M people at credit unions?

It is EXTREMELY difficult and time consuming to get your money back and even more so at small to mid sized credit unions and in some cases you can't get all back. Not to mention weeks to months worth of back and forth jumping through hoops and if the bank can't offer you a temporary credit to cover the loss, then what?

Why even risk it at all? There is no benefit to a debit card if you have impulse control. Plus, if you're overspending on a credit card, you're probably going to do the same thing with a debit card.
Credit unions are subject to the same Regulation E as banks, so I’m not sure this is a valid complaint versus banks. What credit union gave you a problem resolving fraud? Dealing with credit unions is easier than large banks, in my experience, but prefer no problems with either.

I still prefer credit cards, but “overspending “ with debit is capped by the bank balance if there is no credit available. You will not go into debt because you spent on credit, nor will you have to pay interest, often at very high rates.
SaucedUp
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Re: Use credit card at stores instead of debit?

Post by SaucedUp »

criticalmass wrote: Mon Jul 26, 2021 8:14 am
SaucedUp wrote: Mon Jul 26, 2021 7:12 am Fraud protection for debit cards is fine at major banks but what about the ~128M people at credit unions?

It is EXTREMELY difficult and time consuming to get your money back and even more so at small to mid sized credit unions and in some cases you can't get all back. Not to mention weeks to months worth of back and forth jumping through hoops and if the bank can't offer you a temporary credit to cover the loss, then what?

Why even risk it at all? There is no benefit to a debit card if you have impulse control. Plus, if you're overspending on a credit card, you're probably going to do the same thing with a debit card.
Credit unions are subject to the same Regulation E as banks, so I’m not sure this is a valid complaint versus banks. What credit union gave you a problem resolving fraud? Dealing with credit unions is easier than large banks, in my experience, but prefer no problems with either.

I still prefer credit cards, but “overspending “ with debit is capped by the bank balance if there is no credit available. You will not go into debt because you spent on credit, nor will you have to pay interest, often at very high rates.
While the regulations may be the same, big banks have massive fraud departments with plenty of staff. Your local mom and pop credit union with 10 employees doesn't have near the resources to resolve issues in a timely manner (relative to big banks).

Plus, they may not offer you a temporary credit to cover the loss and prevent you from racking up fees in missed payments, overdrafts... etc

Overspending is not about the money in your account or the credit limit you have, it is about living beyond your means. I'd argue that the type of person who is overspending on a credit card is the same type of person who's living well beyond their means and ultimately the credit card has little impact on that behavior. It's likely that this type of person would go into debt regardless of the CC or not (over spend on house, car, finance electronics, etc...) The credit card itself doesn't make someone overextend themselves.

My parents got me a credit card when I was 13 and honestly, every parent should do the same. Kids now are woefully undereducated when it comes to finances and if we made an effort as parents and mentors and educators to teach practical life skills in schools and at home we would all be better off.

I guess my entire point, going back to OP, there is no benefit a debit has over credit if you understand how to use a credit card properly.
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KSOC
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Re: Use credit card at stores instead of debit?

Post by KSOC »

Like most here, I use credit cards for everything I can that doesn't incur a fee. My debit card is for ATMs. Neighbor lady uses a debit card for everything. Since September, when we moved here, her card has been fraudulently used 3 times. She said there were other incidents in the past. Each time, her credit union shuts down her account, and it takes at least 3 mailing days for new card. Last time she was very low on cash and just had to wait for the card. She is adamantly against credit cards, or even opening a second bank account at another institution. To each their own.
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Ivygirl
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Re: Use credit card at stores instead of debit?

Post by Ivygirl »

SaucedUp wrote: Mon Jul 26, 2021 6:01 am In my personal opinion, there is no real reason to use debit over credit.

Even if you set aside the very real risk of your bank account being drained to $0 (most of which you’ll likely never recover). Skimmers are everywhere and only becoming more stealthy. I’d rather have someone steal the credit card companies money than mine

Credit card companies are literally paying you just to use the card and pay it off. So long as the best for doesn’t tack on a 3% fee or whatever.

I just had a fence installed and paid in cash because the fee would be more than the rewards.

I have 6 credit cards of various types and rewards to use when the time is proper.

Not only are you losing out on free money, you’re not getting any benefit to your credit score by having more open lines and unused credit.
When you go out to eat and you see someone at the buffet with six plates - what do you think?

There are a lot of reasons not to take six plates at the buffet, not all of them easy to articulate, but don't we feel some discomfort when we see it, something like - sure it is technically within the rules, but six plates of food is just - well - kind of gross? Why does that person eat so much when they could not possibly be feeling any hunger?
SaucedUp
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Re: Use credit card at stores instead of debit?

Post by SaucedUp »

Ivygirl wrote: Mon Jul 26, 2021 9:48 am
SaucedUp wrote: Mon Jul 26, 2021 6:01 am In my personal opinion, there is no real reason to use debit over credit.

Even if you set aside the very real risk of your bank account being drained to $0 (most of which you’ll likely never recover). Skimmers are everywhere and only becoming more stealthy. I’d rather have someone steal the credit card companies money than mine

Credit card companies are literally paying you just to use the card and pay it off. So long as the best for doesn’t tack on a 3% fee or whatever.

I just had a fence installed and paid in cash because the fee would be more than the rewards.

I have 6 credit cards of various types and rewards to use when the time is proper.

Not only are you losing out on free money, you’re not getting any benefit to your credit score by having more open lines and unused credit.
When you go out to eat and you see someone at the buffet with six plates - what do you think?

There are a lot of reasons not to take six plates at the buffet, not all of them easy to articulate, but don't we feel some discomfort when we see it, something like - sure it is technically within the rules, but six plates of food is just - well - kind of gross? Why does that person eat so much when they could not possibly be feeling any hunger?
I have no idea what point you're trying to make
stoptothink
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Re: Use credit card at stores instead of debit?

Post by stoptothink »

TheHouse7 wrote: Sun Jul 25, 2021 8:46 pm
hicabob wrote: Sun Jul 25, 2021 1:34 pm Winco, a boglehead type supermarket in the PNW, just takes debit cards or cash. It's the only reason I carry my debit card.
WinCo FTW :sharebeer
You can buy Winco gift cars on their site with credit cards. The large majority of our grocery shopping is at Winco and I've never used cash or a debit card there. I usually coincide buying Winco gift cards with opening a new rewards credit card. For instance, last year I bought $3k worth (8-10 months of groceries for us) to meet the 3-month spend on a new card. Not only did I get the $400 bonus, but 1.5% cash back, and I had 15 months 0% interest to pay it back.
criticalmass
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Re: Use credit card at stores instead of debit?

Post by criticalmass »

SaucedUp wrote: Mon Jul 26, 2021 8:56 am
criticalmass wrote: Mon Jul 26, 2021 8:14 am
SaucedUp wrote: Mon Jul 26, 2021 7:12 am Fraud protection for debit cards is fine at major banks but what about the ~128M people at credit unions?

It is EXTREMELY difficult and time consuming to get your money back and even more so at small to mid sized credit unions and in some cases you can't get all back. Not to mention weeks to months worth of back and forth jumping through hoops and if the bank can't offer you a temporary credit to cover the loss, then what?

Why even risk it at all? There is no benefit to a debit card if you have impulse control. Plus, if you're overspending on a credit card, you're probably going to do the same thing with a debit card.
Credit unions are subject to the same Regulation E as banks, so I’m not sure this is a valid complaint versus banks. What credit union gave you a problem resolving fraud? Dealing with credit unions is easier than large banks, in my experience, but prefer no problems with either.

I still prefer credit cards, but “overspending “ with debit is capped by the bank balance if there is no credit available. You will not go into debt because you spent on credit, nor will you have to pay interest, often at very high rates.
While the regulations may be the same, big banks have massive fraud departments with plenty of staff. Your local mom and pop credit union with 10 employees doesn't have near the resources to resolve issues in a timely manner (relative to big banks).
Are you stating real knowledge and actual experience with (a) specific credit union(s) or is this an unsubstantiated fear, uncertainty, doubt campaign against credit unions? Real credit unions, even the smallest, have substantial fraud capabilities, usually outsourced to fraud experts like Falcon, just like many banks. Some credit unions, like Penfed and Navy Federal Credit Union, do it in house. I'd much prefer to deal with a credit union based in US than spend hours on the phone with BoA phone agents (Costa Rica, Philippines) or outsourced Capital One (Nicaragua) who have to email people empowered to help, but that's just me.
Plus, they may not offer you a temporary credit to cover the loss and prevent you from racking up fees in missed payments, overdrafts... etc
«may not» So you are suggesting that a credit union is violating their.agreements with MasterCard and Visa, and ignoring requirements of Regulation E? That's a big accusation. Which credit union(s) did this to you?
A real life problem is when the missed payments occur before you know about it. That happened to me....with a bank.
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Re: Use credit card at stores instead of debit?

Post by jebmke »

SaucedUp wrote: Mon Jul 26, 2021 10:23 am I have no idea what point you're trying to make
That some people in the world make bad decisions. Which is true for an infinite number of things.
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Re: Use credit card at stores instead of debit?

Post by TheHouse7 »

stoptothink wrote: Mon Jul 26, 2021 10:33 am
TheHouse7 wrote: Sun Jul 25, 2021 8:46 pm
hicabob wrote: Sun Jul 25, 2021 1:34 pm Winco, a boglehead type supermarket in the PNW, just takes debit cards or cash. It's the only reason I carry my debit card.
WinCo FTW :sharebeer
You can buy Winco gift cars on their site with credit cards. The large majority of our grocery shopping is at Winco and I've never used cash or a debit card there. I usually coincide buying Winco gift cards with opening a new rewards credit card. For instance, last year I bought $3k worth (8-10 months of groceries for us) to meet the 3-month spend on a new card. Not only did I get the $400 bonus, but 1.5% cash back, and I had 15 months 0% interest to pay it back.
This is awesome, while not willing to do it myself, I really appreciate you speaking up about this method!

Where/who do you get the $400 bonus from?
Last edited by TheHouse7 on Mon Jul 26, 2021 11:02 am, edited 1 time in total.
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ResearchMed
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Re: Use credit card at stores instead of debit?

Post by ResearchMed »

SaucedUp wrote: Mon Jul 26, 2021 10:23 am
Ivygirl wrote: Mon Jul 26, 2021 9:48 am
SaucedUp wrote: Mon Jul 26, 2021 6:01 am In my personal opinion, there is no real reason to use debit over credit.

Even if you set aside the very real risk of your bank account being drained to $0 (most of which you’ll likely never recover). Skimmers are everywhere and only becoming more stealthy. I’d rather have someone steal the credit card companies money than mine

Credit card companies are literally paying you just to use the card and pay it off. So long as the best for doesn’t tack on a 3% fee or whatever.

I just had a fence installed and paid in cash because the fee would be more than the rewards.

I have 6 credit cards of various types and rewards to use when the time is proper.

Not only are you losing out on free money, you’re not getting any benefit to your credit score by having more open lines and unused credit.
When you go out to eat and you see someone at the buffet with six plates - what do you think?

There are a lot of reasons not to take six plates at the buffet, not all of them easy to articulate, but don't we feel some discomfort when we see it, something like - sure it is technically within the rules, but six plates of food is just - well - kind of gross? Why does that person eat so much when they could not possibly be feeling any hunger?
I have no idea what point you're trying to make
Maybe: If they had only paid for the buffet with a debit card instead of a charge card, then they wouldn't be pigging out at the table...
:confused

RM
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Re: Use credit card at stores instead of debit?

Post by sport »

ResearchMed wrote: Mon Jul 26, 2021 10:58 am
SaucedUp wrote: Mon Jul 26, 2021 10:23 am
Ivygirl wrote: Mon Jul 26, 2021 9:48 am
SaucedUp wrote: Mon Jul 26, 2021 6:01 am In my personal opinion, there is no real reason to use debit over credit.

Even if you set aside the very real risk of your bank account being drained to $0 (most of which you’ll likely never recover). Skimmers are everywhere and only becoming more stealthy. I’d rather have someone steal the credit card companies money than mine

Credit card companies are literally paying you just to use the card and pay it off. So long as the best for doesn’t tack on a 3% fee or whatever.

I just had a fence installed and paid in cash because the fee would be more than the rewards.

I have 6 credit cards of various types and rewards to use when the time is proper.

Not only are you losing out on free money, you’re not getting any benefit to your credit score by having more open lines and unused credit.
When you go out to eat and you see someone at the buffet with six plates - what do you think?

There are a lot of reasons not to take six plates at the buffet, not all of them easy to articulate, but don't we feel some discomfort when we see it, something like - sure it is technically within the rules, but six plates of food is just - well - kind of gross? Why does that person eat so much when they could not possibly be feeling any hunger?
I have no idea what point you're trying to make
Maybe: If they had only paid for the buffet with a debit card instead of a charge card, then they wouldn't be pigging out at the table...
:confused

RM
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GG1273
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Re: Use credit card at stores instead of debit?

Post by GG1273 »

CCs only at stores since we pay it off every month anyway

One tip on ATM cards, should use it every 3 months or so to keep it active. We have a small acct at TD Bank, didn't use it for awhile and had to get new PINs at the bank.
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Re: Use credit card at stores instead of debit?

Post by stoptothink »

TheHouse7 wrote: Mon Jul 26, 2021 10:56 am
stoptothink wrote: Mon Jul 26, 2021 10:33 am
TheHouse7 wrote: Sun Jul 25, 2021 8:46 pm
hicabob wrote: Sun Jul 25, 2021 1:34 pm Winco, a boglehead type supermarket in the PNW, just takes debit cards or cash. It's the only reason I carry my debit card.
WinCo FTW :sharebeer
You can buy Winco gift cars on their site with credit cards. The large majority of our grocery shopping is at Winco and I've never used cash or a debit card there. I usually coincide buying Winco gift cards with opening a new rewards credit card. For instance, last year I bought $3k worth (8-10 months of groceries for us) to meet the 3-month spend on a new card. Not only did I get the $400 bonus, but 1.5% cash back, and I had 15 months 0% interest to pay it back.
This is awesome, while not willing to do it myself, I really appreciate you speaking up about this method!

Where/who do you get the $400 bonus from?
It was for the Capitol One Savor, that bonus was last year. I am about to buy $1k in Winco gift cards (we're running low) with my new BofA ultimate rewards; $200 bonus, 1.5% back, and 15 months interest free for spending $1k in 3 months, simply for changing from my existing BofA card. Tons of threads on here about CC churning.
Last edited by stoptothink on Mon Jul 26, 2021 11:28 am, edited 1 time in total.
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Re: Use credit card at stores instead of debit?

Post by Toons »

anon_investor wrote: Sun Jul 25, 2021 6:36 pm
Toons wrote: Sun Jul 25, 2021 6:07 pm Cashback
Walmart
Amazon
For Us.....But

I might use a debit card to assist in
next car purchase
:mrgreen:
Will they let you pay for the whole car with a debit card? For my last car the dealer let me put $5k on my rewards CC and pay the rest via certified check. I would have loved to get all the pts by charging the entire cost...
I have a debit card that allows purchases up to 25k
Wells Fargo

:happy
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Re: Use credit card at stores instead of debit?

Post by anon_investor »

Toons wrote: Mon Jul 26, 2021 11:25 am
anon_investor wrote: Sun Jul 25, 2021 6:36 pm
Toons wrote: Sun Jul 25, 2021 6:07 pm Cashback
Walmart
Amazon
For Us.....But

I might use a debit card to assist in
next car purchase
:mrgreen:
Will they let you pay for the whole car with a debit card? For my last car the dealer let me put $5k on my rewards CC and pay the rest via certified check. I would have loved to get all the pts by charging the entire cost...
I have a debit card that allows purchases up to 25k
Wells Fargo

:happy
It is not about the debit card, it is about the dealer! My credit limit was high enough to pay for the entire car purchase, but the dealer would only let me put $5,000 (as a "deposit") on my card, they didn't charge any extra transaction fee though. The rest of the purcahse price was paid via certified check.
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Re: Use credit card at stores instead of debit?

Post by SaucedUp »

criticalmass wrote: Mon Jul 26, 2021 10:39 am
SaucedUp wrote: Mon Jul 26, 2021 8:56 am
criticalmass wrote: Mon Jul 26, 2021 8:14 am
SaucedUp wrote: Mon Jul 26, 2021 7:12 am Fraud protection for debit cards is fine at major banks but what about the ~128M people at credit unions?

It is EXTREMELY difficult and time consuming to get your money back and even more so at small to mid sized credit unions and in some cases you can't get all back. Not to mention weeks to months worth of back and forth jumping through hoops and if the bank can't offer you a temporary credit to cover the loss, then what?

Why even risk it at all? There is no benefit to a debit card if you have impulse control. Plus, if you're overspending on a credit card, you're probably going to do the same thing with a debit card.
Credit unions are subject to the same Regulation E as banks, so I’m not sure this is a valid complaint versus banks. What credit union gave you a problem resolving fraud? Dealing with credit unions is easier than large banks, in my experience, but prefer no problems with either.

I still prefer credit cards, but “overspending “ with debit is capped by the bank balance if there is no credit available. You will not go into debt because you spent on credit, nor will you have to pay interest, often at very high rates.
While the regulations may be the same, big banks have massive fraud departments with plenty of staff. Your local mom and pop credit union with 10 employees doesn't have near the resources to resolve issues in a timely manner (relative to big banks).
Are you stating real knowledge and actual experience with (a) specific credit union(s) or is this an unsubstantiated fear, uncertainty, doubt campaign against credit unions? Real credit unions, even the smallest, have substantial fraud capabilities, usually outsourced to fraud experts like Falcon, just like many banks. Some credit unions, like Penfed and Navy Federal Credit Union, do it in house. I'd much prefer to deal with a credit union based in US than spend hours on the phone with BoA phone agents (Costa Rica, Philippines) or outsourced Capital One (Nicaragua) who have to email people empowered to help, but that's just me.
Plus, they may not offer you a temporary credit to cover the loss and prevent you from racking up fees in missed payments, overdrafts... etc
«may not» So you are suggesting that a credit union is violating their.agreements with MasterCard and Visa, and ignoring requirements of Regulation E? That's a big accusation. Which credit union(s) did this to you?
A real life problem is when the missed payments occur before you know about it. That happened to me....with a bank.
If you have more knowledge and experience than I in the credit union world I'll take your word for it but logically a multi billion dollar bank has a significantly greater resource pool to use. Big banks can be proactive with account and credit fraud because they have billion dollar IT solutions that automate account data analysis and are designed to detect fraud, probably before you or I would. If you're telling me that any small community credit union has those same capabilities I probably wouldn't believe it without some sort of data backing it up.

As for the 2nd point, I was wrong about that, something I had always believed to be true but turns out it's not. Regardless, there are still certain things you have to do as a victim, in a certain amount of time, in a certain way. In some cases the person may not even know they are a victim of fraud. If you're not paying close attention to your account you could fall outside of the window to report the fraud.

Visa gives you 4 months to report fraud, it's half that at a bank. Now I suppose you could argue that if you didn't see it in 60 days, you probably wouldn't see it in 120 days but Credit Cards also have a level of fraud protection built in.

Honestly, most of this is really just semantics anyways and is unimportant to the OP. Even if debit cards were as safe as credit cards, there is still no benefit.
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Re: Use credit card at stores instead of debit?

Post by Toons »

Yes
They will accept
As the cash is "debited",deducted, from my account
Immediately

:wink:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
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Re: Use credit card at stores instead of debit?

Post by Hoosier CPA »

I think there is a mental benefit that you notice cash leaving when you make purchases (as opposed to running up a credit card balance) that makes you watch your spending a bit more carefully, but I also don't like the lesser protection of debit cards and missing out on free points. I use credit cards for purchases, and use YNAB to track all purchases but also pay off my credit card every 2-3 days. It's just mental accounting but helps me out.
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Re: Use credit card at stores instead of debit?

Post by criticalmass »

SaucedUp wrote: Mon Jul 26, 2021 11:34 am
criticalmass wrote: Mon Jul 26, 2021 10:39 am
SaucedUp wrote: Mon Jul 26, 2021 8:56 am
criticalmass wrote: Mon Jul 26, 2021 8:14 am
SaucedUp wrote: Mon Jul 26, 2021 7:12 am Fraud protection for debit cards is fine at major banks but what about the ~128M people at credit unions?

It is EXTREMELY difficult and time consuming to get your money back and even more so at small to mid sized credit unions and in some cases you can't get all back. Not to mention weeks to months worth of back and forth jumping through hoops and if the bank can't offer you a temporary credit to cover the loss, then what?

Why even risk it at all? There is no benefit to a debit card if you have impulse control. Plus, if you're overspending on a credit card, you're probably going to do the same thing with a debit card.
Credit unions are subject to the same Regulation E as banks, so I’m not sure this is a valid complaint versus banks. What credit union gave you a problem resolving fraud? Dealing with credit unions is easier than large banks, in my experience, but prefer no problems with either.

I still prefer credit cards, but “overspending “ with debit is capped by the bank balance if there is no credit available. You will not go into debt because you spent on credit, nor will you have to pay interest, often at very high rates.
While the regulations may be the same, big banks have massive fraud departments with plenty of staff. Your local mom and pop credit union with 10 employees doesn't have near the resources to resolve issues in a timely manner (relative to big banks).
Are you stating real knowledge and actual experience with (a) specific credit union(s) or is this an unsubstantiated fear, uncertainty, doubt campaign against credit unions? Real credit unions, even the smallest, have substantial fraud capabilities, usually outsourced to fraud experts like Falcon, just like many banks. Some credit unions, like Penfed and Navy Federal Credit Union, do it in house. I'd much prefer to deal with a credit union based in US than spend hours on the phone with BoA phone agents (Costa Rica, Philippines) or outsourced Capital One (Nicaragua) who have to email people empowered to help, but that's just me.
Plus, they may not offer you a temporary credit to cover the loss and prevent you from racking up fees in missed payments, overdrafts... etc
«may not» So you are suggesting that a credit union is violating their.agreements with MasterCard and Visa, and ignoring requirements of Regulation E? That's a big accusation. Which credit union(s) did this to you?
A real life problem is when the missed payments occur before you know about it. That happened to me....with a bank.
If you have more knowledge and experience than I in the credit union world I'll take your word for it but logically a multi billion dollar bank has a significantly greater resource pool to use. Big banks can be proactive with account and credit fraud because they have billion dollar IT solutions that automate account data analysis and are designed to detect fraud, probably before you or I would. If you're telling me that any small community credit union has those same capabilities I probably wouldn't believe it without some sort of data backing it up.

As for the 2nd point, I was wrong about that, something I had always believed to be true but turns out it's not. Regardless, there are still certain things you have to do as a victim, in a certain amount of time, in a certain way. In some cases the person may not even know they are a victim of fraud. If you're not paying close attention to your account you could fall outside of the window to report the fraud.

Visa gives you 4 months to report fraud, it's half that at a bank. Now I suppose you could argue that if you didn't see it in 60 days, you probably wouldn't see it in 120 days but Credit Cards also have a level of fraud protection built in.

Honestly, most of this is really just semantics anyways and is unimportant to the OP. Even if debit cards were as safe as credit cards, there is still no benefit.
Not sure how a multi billion dollar bank has more to lose than a multi billion dollar credit union, but small banks and credit unions don’t have the cushion that larger banks and credit union / institutions have. They can’t afford to write off large fraud amounts. So they have meticulous fraud detection systems. Banks and credit unions both use the same pool of fraud detection systems and tools, e.g. Falcon, FIS, EWS, etc.

Credit cards and debit cards have the same ability to fight fraud, but you the credit card customer aren’t missing money in your checking account while waiting for a successful fraud mitigation to complete. In fact, checking accounts might have further holds on withdrawals until research is completed.

Use a credit card and relax, but unused debit cards are still potential fraud vectors.
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Re: Use credit card at stores instead of debit?

Post by anon_investor »

Toons wrote: Mon Jul 26, 2021 11:37 am Yes
They will accept
As the cash is "debited",deducted, from my account
Immediately

:wink:
I think there are some rewards debit cards. Using one of those to buy a car would be pretty good.
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Re: Use credit card at stores instead of debit?

Post by LadyGeek »

I removed a contentious interchange related to political activism. Please stay on-topic, which is credit vs. debit card for your own situation.
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Re: Use credit card at stores instead of debit?

Post by Horsefly »

Ivygirl wrote: Mon Jul 26, 2021 9:48 am When you go out to eat and you see someone at the buffet with six plates - what do you think?

There are a lot of reasons not to take six plates at the buffet, not all of them easy to articulate, but don't we feel some discomfort when we see it, something like - sure it is technically within the rules, but six plates of food is just - well - kind of gross? Why does that person eat so much when they could not possibly be feeling any hunger?
Having six credit cards is like filling six plates with food at a buffet?! WTF?

This makes absolutely no sense.
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Re: Use credit card at stores instead of debit?

Post by Ivygirl »

KSOC wrote: Mon Jul 26, 2021 9:40 am Like most here, I use credit cards for everything I can that doesn't incur a fee. My debit card is for ATMs. Neighbor lady uses a debit card for everything. Since September, when we moved here, her card has been fraudulently used 3 times. She said there were other incidents in the past. Each time, her credit union shuts down her account, and it takes at least 3 mailing days for new card. Last time she was very low on cash and just had to wait for the card. She is adamantly against credit cards, or even opening a second bank account at another institution. To each their own.
I would suspect someone in her own household, poor lady. :(
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Re: Use credit card at stores instead of debit?

Post by stoptothink »

Horsefly wrote: Mon Jul 26, 2021 12:26 pm
Ivygirl wrote: Mon Jul 26, 2021 9:48 am When you go out to eat and you see someone at the buffet with six plates - what do you think?

There are a lot of reasons not to take six plates at the buffet, not all of them easy to articulate, but don't we feel some discomfort when we see it, something like - sure it is technically within the rules, but six plates of food is just - well - kind of gross? Why does that person eat so much when they could not possibly be feeling any hunger?
Having six credit cards is like filling six plates with food at a buffet?! WTF?

This makes absolutely no sense.
For people with little ability to control their urges financially, CCs are absolutely a bad idea. For those of us who are financially responsible (probably the large majority of posters on this board), there is essentially no downside (compared to debit) and possibly significant upside in terms of rewards. Despite what that nonsensical analogy is trying to imply, this isn't rocket science.
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Re: Use credit card at stores instead of debit?

Post by SaucedUp »

stoptothink wrote: Mon Jul 26, 2021 12:33 pm
Horsefly wrote: Mon Jul 26, 2021 12:26 pm
Ivygirl wrote: Mon Jul 26, 2021 9:48 am When you go out to eat and you see someone at the buffet with six plates - what do you think?

There are a lot of reasons not to take six plates at the buffet, not all of them easy to articulate, but don't we feel some discomfort when we see it, something like - sure it is technically within the rules, but six plates of food is just - well - kind of gross? Why does that person eat so much when they could not possibly be feeling any hunger?
Having six credit cards is like filling six plates with food at a buffet?! WTF?

This makes absolutely no sense.
For people with little ability to control their urges financially, CCs are absolutely a bad idea.
For those of us who are financially responsible (probably the large majority of posters on this board), there is essentially no downside (compared to debit) and possibly significant upside in terms of rewards. Despite what that nonsensical analogy is trying to imply, this isn't rocket science.
I think a lot of this can be solved by early childhood financial education. Literally anything. Schools don't teach anything and many parents don't either and that needs to change.
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Re: Use credit card at stores instead of debit?

Post by anon_investor »

criticalmass wrote: Mon Jul 26, 2021 11:58 am Not sure how a multi billion dollar bank has more to lose than a multi billion dollar credit union, but small banks and credit unions don’t have the cushion that larger banks and credit union / institutions have. They can’t afford to write off large fraud amounts. So they have meticulous fraud detection systems. Banks and credit unions both use the same pool of fraud detection systems and tools, e.g. Falcon, FIS, EWS, etc.

Credit cards and debit cards have the same ability to fight fraud, but you the credit card customer aren’t missing money in your checking account while waiting for a successful fraud mitigation to complete. In fact, checking accounts might have further holds on withdrawals until research is completed.

Use a credit card and relax, but unused debit cards are still potential fraud vectors.
I am hesitant to have a checking account at a bank or credit union that does not have the ability to have the card temporarily locked via their website or mobile app.
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Re: Use credit card at stores instead of debit?

Post by JackoC »

anon_investor wrote: Mon Jul 26, 2021 12:06 pm
Toons wrote: Mon Jul 26, 2021 11:37 am Yes
They will accept
As the cash is "debited",deducted, from my account
Immediately

:wink:
I think there are some rewards debit cards. Using one of those to buy a car would be pretty good.
As has been discussed a few times, there are potential deals on cash back DC's for specific types of purchases where the seller would not accept CC (for the whole amount) or charge a bigger 'convenience fee'.

A combined CC/DC strategy I use is to buy $1k Visa Gift Cards online at 5.25% cash back from BOA CCF CC. Seller, Simon Properties, charges as little as ~0.75% in fees/delivery charges during periodic sales, at the size I do. Then the VGC is treated as 'debit' when I pay federal estimated taxes at the tax processors, fixed fee of $2+ vs. ~2% for a CC. So that's a 'DC' advantage though a VGC isn't generally thought of as a DC.

On actual cash back DC's a recent thread mentioned Green Dot offering at that time 2% cashback, again particularly for paying estimate taxes, lots of CC's still beat that for day to day purchases. However, my research on Green Dot showed customer review sites full of one star ('I wish I could give these people zero stars') ratings. I decided to steer clear.

Otherwise I think the fairly unusual cash back DC's top out at 1%. So like you say you might find some unusual cases where that came out ahead, like estimated tax if the strategy above is too much hoop jumping, or if a car dealer would accept it for whole amount after a regular price negotiation. Would they?

I have ears open to better cash back DC's, or ways to use existing ones more profitably. I use Target DC, 5% off at Target, but I realize that's not at all clever because Target offers 5% CB at Target CC, I just didn't know that when the store person signed me up for the DC. The hack risk of a DC can be managed if you're not using it *a lot*. And, I have the Target DC pull off a secondary checking account where I keep little money, I often keep large balance now in main checking account because it pays more interest than any of my savings accounts, but I cut its DC ties to the outside world.
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Re: Use credit card at stores instead of debit?

Post by anon_investor »

JackoC wrote: Mon Jul 26, 2021 1:52 pm
anon_investor wrote: Mon Jul 26, 2021 12:06 pm
Toons wrote: Mon Jul 26, 2021 11:37 am Yes
They will accept
As the cash is "debited",deducted, from my account
Immediately

:wink:
I think there are some rewards debit cards. Using one of those to buy a car would be pretty good.
As has been discussed a few times, there are potential deals on cash back DC's for specific types of purchases where the seller would not accept CC (for the whole amount) or charge a bigger 'convenience fee'.

A combined CC/DC strategy I use is to buy $1k Visa Gift Cards online at 5.25% cash back from BOA CCF CC. Seller, Simon Properties, charges as little as ~0.75% in fees/delivery charges during periodic sales, at the size I do. Then the VGC is treated as 'debit' when I pay federal estimated taxes at the tax processors, fixed fee of $2+ vs. ~2% for a CC. So that's a 'DC' advantage though a VGC isn't generally thought of as a DC.

On actual cash back DC's a recent thread mentioned Green Dot offering at that time 2% cashback, again particularly for paying estimate taxes, lots of CC's still beat that for day to day purchases. However, my research on Green Dot showed customer review sites full of one star ('I wish I could give these people zero stars') ratings. I decided to steer clear.

Otherwise I think the fairly unusual cash back DC's top out at 1%. So like you say you might find some unusual cases where that came out ahead, like estimated tax if the strategy above is too much hoop jumping, or if a car dealer would accept it for whole amount after a regular price negotiation. Would they?

I have ears open to better cash back DC's, or ways to use existing ones more profitably. I use Target DC, 5% off at Target, but I realize that's not at all clever because Target offers 5% CB at Target CC, I just didn't know that when the store person signed me up for the DC. The hack risk of a DC can be managed if you're not using it *a lot*. And, I have the Target DC pull off a secondary checking account where I keep little money, I often keep large balance now in main checking account because it pays more interest than any of my savings accounts, but I cut its DC ties to the outside world.
I was just thinking for the car purchase context. That is going to be a $10-40k purchase for most people. If you can even snag 1% CB on that is $100-$400 CB. The other poster mentioned the dealer allowing 100% of the purchase price to be paid via debit. So that is interesting.
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Re: Use credit card at stores instead of debit?

Post by JackoC »

anon_investor wrote: Mon Jul 26, 2021 1:59 pm
JackoC wrote: Mon Jul 26, 2021 1:52 pm
Otherwise I think the fairly unusual cash back DC's top out at 1%. So like you say you might find some unusual cases where that came out ahead, like estimated tax if the strategy above is too much hoop jumping, or if a car dealer would accept it for whole amount after a regular price negotiation. Would they?
I was just thinking for the car purchase context. That is going to be a $10-40k purchase for most people. If you can even snag 1% CB on that is $100-$400 CB. The other poster mentioned the dealer allowing 100% of the purchase price to be paid via debit. So that is interesting.
Yeah, much of this thread is socio-political mush IMO, but this tidbit is thought provoking. I'll jump through a hoop or two for a few $100, if it works.
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Re: Use credit card at stores instead of debit?

Post by anon_investor »

JackoC wrote: Mon Jul 26, 2021 2:07 pm
anon_investor wrote: Mon Jul 26, 2021 1:59 pm
JackoC wrote: Mon Jul 26, 2021 1:52 pm
Otherwise I think the fairly unusual cash back DC's top out at 1%. So like you say you might find some unusual cases where that came out ahead, like estimated tax if the strategy above is too much hoop jumping, or if a car dealer would accept it for whole amount after a regular price negotiation. Would they?
I was just thinking for the car purchase context. That is going to be a $10-40k purchase for most people. If you can even snag 1% CB on that is $100-$400 CB. The other poster mentioned the dealer allowing 100% of the purchase price to be paid via debit. So that is interesting.
Yeah, much of this thread is socio-political mush IMO, but this tidbit is thought provoking. I'll jump through a hoop or two for a few $100, if it works.
I was happy enough that the dealer let me put $5k on my rewards CC, better than nothing, they didn't charge a convenience fee either.
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Re: Use credit card at stores instead of debit?

Post by sman09 »

nisiprius wrote: Sat Jul 24, 2021 5:11 pm
In more than thirty years, I have disputed about eight credit card bills, and every single time the situation was resolved quickly, easily, and in my favor. The largest amount involved was $1,000.

I have only had an issue with a debit card once--I bought one item and got charged twice for it--and that, too, was resolved quickly and easily.

I think by far the most important issue is vigilance and reporting issues quickly. Based on Experian's web page, this is more important with debit cards.
nisiprius:

when one reports a credit card transaction that you do not recognize, do we have to work with the bank's team for a extended period of time till they are done "looking in to" the issue or is our responsibility over with reporting?
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Re: Use credit card at stores instead of debit?

Post by sport »

sman09 wrote: Mon Jul 26, 2021 4:52 pm
nisiprius wrote: Sat Jul 24, 2021 5:11 pm
In more than thirty years, I have disputed about eight credit card bills, and every single time the situation was resolved quickly, easily, and in my favor. The largest amount involved was $1,000.

I have only had an issue with a debit card once--I bought one item and got charged twice for it--and that, too, was resolved quickly and easily.

I think by far the most important issue is vigilance and reporting issues quickly. Based on Experian's web page, this is more important with debit cards.
nisiprius:

when one reports a credit card transaction that you do not recognize, do we have to work with the bank's team for a extended period of time till they are done "looking in to" the issue or is our responsibility over with reporting?
The last one I had, the bank notified me of the suspicious charge (they had bounced it) and asked me to call them. They asked me to verify I had not tried to make that charge, and they asked if any other recent charges were fraudulent. I identified two or three others and they took those off my account immediately. They cancelled my account number and sent me a new card that arrived in a day or two.
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Re: Use credit card at stores instead of debit?

Post by anon_investor »

sport wrote: Mon Jul 26, 2021 5:38 pm
sman09 wrote: Mon Jul 26, 2021 4:52 pm
nisiprius wrote: Sat Jul 24, 2021 5:11 pm
In more than thirty years, I have disputed about eight credit card bills, and every single time the situation was resolved quickly, easily, and in my favor. The largest amount involved was $1,000.

I have only had an issue with a debit card once--I bought one item and got charged twice for it--and that, too, was resolved quickly and easily.

I think by far the most important issue is vigilance and reporting issues quickly. Based on Experian's web page, this is more important with debit cards.
nisiprius:

when one reports a credit card transaction that you do not recognize, do we have to work with the bank's team for a extended period of time till they are done "looking in to" the issue or is our responsibility over with reporting?
The last one I had, the bank notified me of the suspicious charge (they had bounced it) and asked me to call them. They asked me to verify I had not tried to make that charge, and they asked if any other recent charges were fraudulent. I identified two or three others and they took those off my account immediately. They cancelled my account number and sent me a new card that arrived in a day or two.
For the fraudulent activity I have had, it just required a call (those I think there is an online option), all fully resolved usually in less than a couple of weeks and account credited usually within days.
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Re: Use credit card at stores instead of debit?

Post by 02nz »

sman09 wrote: Mon Jul 26, 2021 4:52 pm when one reports a credit card transaction that you do not recognize, do we have to work with the bank's team for a extended period of time till they are done "looking in to" the issue or is our responsibility over with reporting?
If it literally is "I don't recognize this charge at all," it's pretty much as simple as telling the bank that, often just over the phone. If it's more complicated (merchant charged you for a product/service but didn't deliver) the bank will generally ask for more documentation. Usually, while the matter is investigated, they remove the charge from your account, and put it back on only if found in the merchant's favor.
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Re: Use credit card at stores instead of debit?

Post by sman09 »

Thank you @02nz, @anon_investor and @sport for your inputs! That is good to know.
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Re: Use credit card at stores instead of debit?

Post by BroomBroom »

Since I got my American Express BA card for AVIOS points I use it 95% of the time now, I like the protection although *touch wood* I have never had a card skimmed.

I do feel safer using it for bigger purchases, ever since Corona I noticed the deliveries from Amazon etc they were just leaving them on the doorstep due to social distancing stuff when before they would knock or leave at a neighbours house or something and trying to dispute something like that if it ever got stolen is a pain on a debit card I heard.
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Re: Use credit card at stores instead of debit?

Post by runswithscissors »

I haven't used a debit card in over 20 years and can't imagine any scenario I would ever use one again.
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Re: Use credit card at stores instead of debit?

Post by midareff »

I only use credit cards at stores and restaurants at all times. Grocery store is the 6% cash back AMEX card. Gas is the 5% cash back Pen Fed Card. General around town is the 2% cash back Fidelity card and of course Amazon, Target, Best Buy, etc., all have their own 5% cash back cards and they all have fraud protection and protest rights. I can't imagine why I would pay now in a cash like transaction without a discount. Pre-covid we were running $2K - $3K a year in annual cash back savings. No need to pass that up.
iamblessed
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Joined: Sat Jun 09, 2018 11:52 am
Location: St. Louis

Re: Use credit card at stores instead of debit?

Post by iamblessed »

I used one for about 10 years with no problems. Dave Ramsey has millions of people using them so they can't be to bad.
BigJohn
Posts: 2626
Joined: Wed Apr 02, 2014 11:27 pm

Re: Use credit card at stores instead of debit?

Post by BigJohn »

For all of the reasons noted above I only use my debit card for ATM withdrawals. For years I wasn’t worried about the debit card since it was never used. Then I actually got a fraudulent charge on it a few years back (a small $$ amount) that the bank resolved after a few weeks. Since then I use the bank app to keep my debit card locked at all times. I didn’t know this was possible but it was a suggested step by the bank after they issued a new card. When I need cash, I unlock, use the ATM, then relock. I want to minimize any possibility of direct access to the checking/savings accounts that I used to pay all my bills.
"The greatest enemy of a good plan is the dream of a perfect plan" - Carl Von Clausewitz
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