Use credit card at stores instead of debit?

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montanagirl
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Use credit card at stores instead of debit?

Post by montanagirl »

I got in a discussion on another forum with someone who says it's crazy to use debit cards at stores, that if they fell into the wrong hands someone could access all your banking info.

Now that I have an unused heloc showing up in my accounts that does rather worry me. I already use my cc for online pickup orders.

Should I be concerned? I don't need to build up my credit or anything.
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StevieG72
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Re: Use credit card at stores instead of debit?

Post by StevieG72 »

I don’t even have a debit card for that very reason. With a debit card, the money is gone from your account and you have to fight to get it back. I don’t have a ATM card either.
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Re: Use credit card at stores instead of debit?

Post by gwe67 »

StevieG72 wrote: Sat Jul 24, 2021 4:55 pm I don’t even have a debit card for that very reason. With a debit card, the money is gone from your account and you have to fight to get it back. I don’t have a ATM card either.
Exactly. Also be sure to use a good cash back credit card.
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Re: Use credit card at stores instead of debit?

Post by Triple digit golfer »

I never use a debit card for purchases. I have one but it sits in my house and I would only use it to pull cash from an ATM. I haven't had to in years.
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Re: Use credit card at stores instead of debit?

Post by jebmke »

StevieG72 wrote: Sat Jul 24, 2021 4:55 pm I don’t even have a debit card for that very reason. With a debit card, the money is gone from your account and you have to fight to get it back. I don’t have a ATM card either.
I have an ATM only card; but, I haven't used physical currency since March, 2020 so it is not used much anymore.
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Re: Use credit card at stores instead of debit?

Post by Broken Man 1999 »

I have never used a debit card. When the credit union sends an ATM/debit card, I call them and they make it an ATM card only.

I use rewards cards for any purchase that doesn't charge a use fee. DW, OTOH uses her debit card far more than her credit cards. She misses a lot of rewards. :oops:

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Re: Use credit card at stores instead of debit?

Post by nisiprius »

There is a technicality involving the amount of protection you have against fraudulent charges with debit and with credit cards.

If your credit card (or its number) is stolen and used fraudulently, you are liable for at most $50--and if you report the card stolen before it is used, you are not liable at all. And this protection is provided under law by the The Fair Credit Billing Act (FCBA) .

With a debit card, the protection is "similar but..." Experian says
The law governing debit cards, though, is not quite so powerful. If a person used your debit card without your knowledge or authorization, your liability is protected by the Electronic Funds Transfer Act, which gives you the right to challenge fraudulent transactions. But you'd better act fast. As long as you alert the bank that your card was stolen or compromised before someone uses it, you won't be liable for any of the future transactions. Wait two business days after the fraud and you might have to pay up to $50. Miss that deadline and wait 60 days, and your liability increases to $500. Let 60 days pass and your liability is unlimited, which means all your money in the account that was taken might be lost for good.
I use debit cards freely at stores, but on major and important purchases and on trips I use credit cards. That may just be because I've been using credit cards longer, and have had more experience disputing bills and feel highly confident.

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.
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02nz
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Re: Use credit card at stores instead of debit?

Post by 02nz »

Generally your liability on credit cards is less, and even where the debit card provides full protection in the event of theft, would you rather that the thief have your money or the bank's, while the bank investigates? Also, would would you rather earn 2-6% back, or nothing?
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Re: Use credit card at stores instead of debit?

Post by Katietsu »

I do not generally use debit cards. The debit card I do have is linked to a checking account where I keep little cash. I would definitely not have overdraft protection linked to the account that has a debit card.

However, I also do not think access to the debit card alone would allow a criminally minded person to get all your bank info either. In my experience, they would also need your PIN or other info.
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Re: Use credit card at stores instead of debit?

Post by Mike Scott »

Credit cards have better consumer protections than debit cards. And rewards.
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Re: Use credit card at stores instead of debit?

Post by JoMoney »

There is more risk with a debit card. If there is a fraudulent charge on a personal/consumer credit card and you dispute it, your liability would likely be zero. Visa and Master Card debit cards are typically also covered under a "Zero Liability" policy regarding fraudulent charges, but with a debit transaction the money comes directly out of your bank account, and even if you're fully refunded for a fraudulent charge, it might still cause a check to bounce, or for you to otherwise not have your money available to you while the fraud dispute is investigated.
Sometimes banks will provide you a "provisional credit" while they investigate a fraudulent debit card/bank withdrawal you dispute, allowing you to continue to spend on your account, but that's not always the case, and can vary on different amounts and situations.

Outside of that, I don't see how there's any more concern about "accessing all your banking info". There is personal information that someone might be able to find based on you debit card info, but that's not significantly different from the information they might get from your credit card info.
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LittleMaggieMae
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Re: Use credit card at stores instead of debit?

Post by LittleMaggieMae »

It doesn't sound quite right that having unauthorizied access to a debit card would automatically get someone access to your other banking info or accounts. How would they do that? Do you have some sort of checking account where if you over draw it - the bank taps your HELOC or other savings account? That would be a round about way that someone could drain your checking account - and the type of account you have would pull the excess charges from your other accounts. The thief doesn't have the other accounts info - even though they are using the funds from them... Is this even a thing with linking accounts????

I do have a debit card that goes with my HELOC - but I keep that card in a safe place - it's never been in my wallet and I will admit I'm a little leery of using it - I'd rather just transfer $$ from my HELOC to my checking account and then pay who/whatever from there.

I do not use a debit card. If I did and I had the unhappy situation where my card was stolen and used - the fall out for me might be catastrophic. If the money in my checking account goes away - my monthly finances will tumble into chaos... my bill pays, my transfers, my mortgage payments, all of the carefully orchestrated movements of money into and out of my checking account would be effected. I would have to find up to 5K to immediately transfer back to checking to get everything back up and running. And if the bank's solution was to give me a new checking account number...ugh. more work for me to track down and change/update that info.

If my credit card gets stolen and used and 5K is stolen - my day to day life stays the same. So, no Debit Card for me.
(FWIW: I did have my purse stolen and my credit cards used for over 5K in purchases. The CC companies closed the cards before I reported it (about 1 hour after my purse vanished). The CC companies took care of it. I had replacement cards/new accounts with 48 hours. My financial life went on without a blip - but I did suffer grief and mourning over the loss of personal items that had been in my purse (pictures, wallet that had been a gift, my vintage swiss army knife, etc). Things that could not be replaced. :(

And here's some tips about risky places to use debit cards:
https://www.bankrate.com/banking/checki ... ebit-card/
Last edited by LittleMaggieMae on Sat Jul 24, 2021 5:48 pm, edited 4 times in total.
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Re: Use credit card at stores instead of debit?

Post by Jack FFR1846 »

Where a debit card makes sense is for typical Dave Ramsey callers who can't manage credit because they don't see their bank account go down every time a purchase is made. One of my kids fell into this trap. Earned $800 in 2 weeks, spent $3600. He was an authorized user on my credit card and would pay me whenever the statement came in. He's since handed me back the credit card (and I changed the number because it was with some of the food delivery services) and every purchase he makes now, he can see what his bank balance is.

For people who use credit responsibly, I see zero reason to ever use a debit card. I never use one, ever.
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LittleMaggieMae
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Re: Use credit card at stores instead of debit?

Post by LittleMaggieMae »

I recall a coworker 'fessing up to have a dedicated checking account that went with his debit card. The checking account was ONLY for his expenses. His wife kept the "family checking account" were their paychecks were deposited and all the bills/mortgage/other expenses were paid from.

I can see doing that - when someone isn't good at keeping track of their spending or just doesn't want to keep track (and doesn't go hog wild).
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Re: Use credit card at stores instead of debit?

Post by MrJedi »

It's more of a pain to deal with fraudulent activity on a debit card for the simple reason that you lose access to that money until it gets fixed. With credit cards they typically give you a temporary credit on your account while they do the investigation...much less invasive IMO.

Credit cards also typically offer much better rewards, cashback, sign up bonuses, etc. If you are responsible with the credit and understand your cash flow and float when using them, credit cards seem much better to me.
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Re: Use credit card at stores instead of debit?

Post by riverant »

What reason would there be to use a debit card, aside from those rare events when credit card fees are absurd (mainly taxes)?
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Re: Use credit card at stores instead of debit?

Post by LittleMaggieMae »

And just an extra thought...

Do you worry about unauthorized access in these situations:
the paper checks that go with your checking account has a bank id/routing number and your account number. Any one with access to a paper check - has your account info.

Depending on if you set up push or pulls for online bill pays - you may have giving a vendor (your car loan? the utility company?) your bank id/routing number AND your account number so they could Pull their payment every month. What if the vendor gets hacked??

I'm not sure how a debit card (which is like a check or a bill pay pull) gives an unauthorized user (or even someone you authorize) access to other accounts at your bank. Perhaps this is a question for the Customer SErvice Representative at your bank...
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Re: Use credit card at stores instead of debit?

Post by sport »

nisiprius wrote: Sat Jul 24, 2021 5:11 pm I use debit cards freely at stores...
Nisi,
If I may ask, why do you do that? Credit cards have better protection and rebates. Why use a debit card?
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Re: Use credit card at stores instead of debit?

Post by nisiprius »

TJat wrote: Sat Jul 24, 2021 5:40 pm What reason would there be to use a debit card, aside from those rare events when credit card fees are absurd (mainly taxes)?
Because I like to.

Let me say this in public: I truly believe that my wife and I are neither innumerate nor stupid. Nevertheless, what we have found... for us... is that we are consistently unable to keep mental track of how big our credit card balance is. (Worse yet, we have "his" and "hers" credit card accounts and we definitely do not keep track of what is on the other's card).

But even my own credit card balance is always a surprise. I am going to try an actual test. I paid off my balance just a few days ago. I believe my current balance... let me think... Costco... Amazon... monthly subscriptions... is about $300. Now I am going to check. It is $430. How come? I forgot a purchase of language lesson credits, a pet food order from Chewy.com, a purchase from Amazon of food that I forget about because it is going to be a food pantry donation and not our food, and a flock of tiny purchases ($6.71 here, $17.22 there) that added up.

Anyone else care to try?

There is no doubt at all in my mind that we, at least, tend to forget credit card purchases. That they tend to make a smaller impression on us. And that in a relatively mild way we overspend on our credit card purchases. They don't feel real and they don't regulate our spending behavior.

One the other hand, our checking account balance feels "real," we are reminded of it almost continuously, and for all of our married lives we have tended to use our checking account balance as the thing that regulates our spending.

Also, I just plain do not like owing money. Even for a short period of time. Money is to be used to satisfy our needs and wants, and I am quite willing to be financially suboptimal in the interest of not owing money because I like that feeling. I'm no purist about this, but my druthers are to use money I have to buy stuff, rather than borrowing money from a bank to buy stuff and then paying the bank back.

As for rebates, during the two years I had a card with a cashback feature, I found that it was sort of a teaser--they really made it hard for you to use your "cashback" as cash back, rather than to buy stuff from their catalog of Salton digital radish peelers. Worse yet, I also found that I was spending more because of a feeling that I was "scoring" if I bought something that cost $50 and got $2.50 back, compared to not spending the $50. Again, I speak only for myself.

None of this is rational and I know some people will say "why don't you just"... keep an abacus in your pocket and move the beads whenever you buy something on the credit card, or use some smartphone app or something... but it is what it is, we know how we are, what works for us and what pleases us.
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Re: Use credit card at stores instead of debit?

Post by LittleMaggieMae »

nisiprius wrote: Sat Jul 24, 2021 6:03 pm
One the other hand, our checking account balance feels "real," we are reminded of it almost continuously, and for all of our married lives we have tended to use our checking account balance as the thing that regulates our spending.
First, I'm glad you have a system that works for you. It's a good thing.

This is the thing that has baffled me about people who somehow manage to use their checking account for general spending and somehow manage to use the balance to determine if they can spend money or not...

How do you keep track of how much in your checking account is actually spendable? Generally the "balance" amount isn't all available to spend.

Unless I look at my check register (a piece of paper) which I maintain. I have no idea how much is actually available in my checking account. As in my checking account currently has a balance of $6,234.05. But it's all allocated to upcoming "bills" or "expenses". Without my check register (to know what outflows are going to happen in the next 10 days) I DO NOT have 6K available to spend. I've actually only got $34 I could spend. :)

I've got to keep $1500 in the account to keep it free... so there's $4,734.05 left. I've got a 2K pull from Treasure Direct coming up in a few days - $2,734.05 left. The first of the month is a $700 mortgage payment - $2,034.05. A transfer to Ally of $1500 on the 2nd of August - $5534.05. and I've reserved $500 to go to Fidelity (along with $500 from the pay check that will hit my account on the 30th - and yeah that money is already accounted for ). So atleast until the next payday I've got $34.05 that's available to "spend" on something.

How do you keep track of the money in your checking account that's been allocated to something else so you don't inadvertently spend it?
Do you just have a checking account dedicated to your "spending"? or do you keep a large amount of $$ in your checking so you don't have to worry about the ebbs and flows of monthly spending/bill paying/paydays...
Last edited by LittleMaggieMae on Sat Jul 24, 2021 6:31 pm, edited 2 times in total.
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Re: Use credit card at stores instead of debit?

Post by RickBoglehead »

nisiprius wrote: Sat Jul 24, 2021 6:03 pm None of this is rational and I know some people will say "why don't you just"... keep an abacus in your pocket and move the beads whenever you buy something on the credit card, or use some smartphone app or something... but it is what it is, we know how we are, what works for us and what pleases us.
All true statements.

Never used a debit card in my life. Always use a credit card. Cashback could not be easier, hundreds of dollars a year.

Every bank card is ATM only.

With PayPal's virtual debit card, using that tied to the credit card of the hour.
Last edited by RickBoglehead on Sat Jul 24, 2021 6:35 pm, edited 1 time in total.
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Re: Use credit card at stores instead of debit?

Post by KingAAAA3 »

For anyone who still balances a checkbook out there the old fashioned way, each debit card purchase is more bookkeeping as well. Much more time and effort spent keeping track of each of these purchases versus paying off and entering one monthly credit card bill.
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Re: Use credit card at stores instead of debit?

Post by LeftCoastIV »

We switched to a credit card with airline points and almost never use our debit card as a result.
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Re: Use credit card at stores instead of debit?

Post by SnowBog »

For myself, I never use a debit card - unless it's to withdraw cash. As others noted, the protections and benefits of CC are better IMHO.

But I can empathize with:
nisiprius wrote: Sat Jul 24, 2021 6:03 pm Nevertheless, what we have found... for us... is that we are consistently unable to keep mental track of how big our credit card balance is.
I've probably made this "worse" by moving us from a 1 main card approach to having a few cards (with better bonuses on different things). My spouse especially wouldn't have a "guess" at our balances...

However, what I've found - absent large one time expenses - our "average" CC balance isn't wildly different. Some of that is because we use CC for everything we can, including lots of recurring expenses like utilities (that allow CC), groceries, etc. So minor differences of a few hundred won't really impact us greatly. (We use autopay from "checking" on most everything else, including paying full CC balance each month.)

Once a month when we "balance the checkbook" (so to speak), I login to Mint (where at any time I can see our aggregate balances and upcoming bills) and make sure our "checking" account has enough to cover the next 30+ days bills (including paying off all credit cards) - which will (whenever possible be autopay). This works for us...
nisiprius wrote: Sat Jul 24, 2021 6:03 pm As for rebates, during the two years I had a card with a cashback feature, I found that it was sort of a teaser--they really made it hard for you to use your "cashback" as cash back, rather than to buy stuff from their catalog of Salton digital radish peelers.
Not sure how long ago that was... But either times have changed, or you need better credit cards...

My primary cards are all automated cash back. Our "default" card is Fidelity's 2%, which simply has a cash credit show up in any [Fidelity] account we pick each month. Another credit card has automatic credit (at $25 threshold) applied directly to the balance.

The only "manual" card I deal with is HMBradley's, but I tolerate the 30 seconds it takes me to "redeem" my credit (either against balance or applied to savings account) in exchange for a 3% cashback card on my highest spend category which also raises the rate on their savings account from 3% to 3.5% (and I'm unaware of anywhere else you can get 3.5% on an FDIC savings account with up to $100k these days).
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Re: Use credit card at stores instead of debit?

Post by Statistical »

If you are good with credit there is zero reason to use debit cards over credit cards.

Debit cards cost the merchant less. Great for merchant - nothing for you. Debit cards avoid the bank needing to give you a line of credit. Great for the bank - nothing for you.

The consumer gains no benefits from debit cards, no cashback/rewards, and worse protections in the case of fraud.

So unless you can't properly manage credit (i.e. overspend, ending keeping a balance, etc) a debit card is a pointless inferior product in every possible way.
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Re: Use credit card at stores instead of debit?

Post by cheese_breath »

Only time I ever use a debit card is for an ATM withdrawal, and that's not very frequent. Other than that it's credit cards for everything.
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Re: Use credit card at stores instead of debit?

Post by ResearchMed »

LittleMaggieMae wrote: Sat Jul 24, 2021 5:44 pm And just an extra thought...

Do you worry about unauthorized access in these situations:
the paper checks that go with your checking account has a bank id/routing number and your account number. Any one with access to a paper check - has your account info.

Depending on if you set up push or pulls for online bill pays - you may have giving a vendor (your car loan? the utility company?) your bank id/routing number AND your account number so they could Pull their payment every month. What if the vendor gets hacked??

I'm not sure how a debit card (which is like a check or a bill pay pull) gives an unauthorized user (or even someone you authorize) access to other accounts at your bank. Perhaps this is a question for the Customer SErvice Representative at your bank...
Some banks arrange online bill paying to be done with checks that are NOT linked to one's own checking account number. Indeed, back in the day... the envelope and the check looked almost bogus.
... so bogus that when we got one the first time, we tossed it in the trash. :shock:
The check was written on an unknown "bank", with a notation something like that it was payment on behalf of <our name>. Or in that case, someone else's name, but we didn't inspect it that carefully. We assumed it was one of those "sign this check that seems to be a good deal and you've just signed up for <some unwanted service>" or such.

We now only use those for business type payments, so no specific person is typically going to open the envelope. Or *not* even open the envelope. :annoyed

When we were running our vacation rental business, when I would tell a gueat that we were returning their Security Deposit, along with the regular 'thank you/etc.," I'd tell them what the envelope would look like and NOT to through out any business sized envelopes until after they had received the check.
Annoying.

I don't know if that is still how the checks appear. i suppose we could send a check to ourselves to see :wink:

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Re: Use credit card at stores instead of debit?

Post by tim1999 »

My debit card stays locked in a safe at home, only taken out used maybe once per year on the rare occasion I need to get cash from an ATM when my branch's staffed drive through is closed.
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Re: Use credit card at stores instead of debit?

Post by montanagirl »

Mike Scott wrote: Sat Jul 24, 2021 5:13 pm Credit cards have better consumer protections than debit cards. And rewards.
Not sure about my card, which I recently switched to from Citi.

I can't even find a dispute button at the new site. :confused
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Re: Use credit card at stores instead of debit?

Post by Watty »

Broken Man 1999 wrote: Sat Jul 24, 2021 5:10 pm I have never used a debit card. When the credit union sends an ATM/debit card, I call them and they make it an ATM card only.
Me too.

I have even had a bank tell me they no longer issued plain ATM cards and they only issed debit cards now when I called the 800 phone number after they sent me a new debit card to replace my ATM card.

My response was , "OK, let me get your name again so that when I close my accounts in a few weeks I can explain that I am closing them because you would not send me an ATM card." They quickly changed their story and I had an ATM card in the mail in a few days. :twisted:

I did not even have a large amount at that bank since keep my investing separate from my banking.

In a separate situation I has a recurring charge from classemates.com even though my wife had instructed them to cancel her account(they were notorious for that). They were impossible to deal with so I called the credit card company to reverse the charge but since it had originally been approved by my wife they were balking at reversing the charge and would also allow them to do future charges too! I told the credit card company that if they would not reverse the charge and block future charges from them that they should close my credit card immediately. They backed down and reveresed the charge.

One other risk is that you may accidentally overdraw your account. One time when my son was in college he had a debit card that he used to buy a soda. The charge went through just fine but it overdrew his account and there was something like a $35 overdraft fee. That was one expensive soda! If you do decide to have a debit card for some reason you may want to make sure that the automatic overdraft protection is turned off. This will also help limit the damage if your debit card does get compromised.

There is no upside to having a debit card and lots of downsides. You are taking on a lot more of the risk by using a debit card instead of a credit card which is why the banks really want you to use a debit card.
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Re: Use credit card at stores instead of debit?

Post by Saluki31 »

LittleMaggieMae wrote: Sat Jul 24, 2021 6:27 pm How do you keep track of the money in your checking account that's been allocated to something else so you don't inadvertently spend it?
Do you just have a checking account dedicated to your "spending"? or do you keep a large amount of $$ in your checking so you don't have to worry about the ebbs and flows of monthly spending/bill paying/paydays...
My wife and I use a credit card for all purchases, for the cash back. We record each individual purchase in our checkbook (with a notation "A" for Amex, "V" for Visa). When the credit card statement comes, I check off each item in the checkbook against the statement, and pay the statement in full. Have been doing this for many, many years. I like knowing the "spendable" balance in my checking account at all times.
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Re: Use credit card at stores instead of debit?

Post by sport »

ResearchMed wrote: Sat Jul 24, 2021 7:37 pm Some banks arrange online bill paying to be done with checks that are NOT linked to one's own checking account number.
My bank does this. However, there is a down side. The bank takes the money out of my account when they write the check, not when the check clears. In fact, I do not get to see whether or not the check has cleared because the money was no longer in my account. The only way I would know if a check got lost in the mail is when the payee sends another bill.
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Re: Use credit card at stores instead of debit?

Post by ResearchMed »

sport wrote: Sat Jul 24, 2021 9:21 pm
ResearchMed wrote: Sat Jul 24, 2021 7:37 pm Some banks arrange online bill paying to be done with checks that are NOT linked to one's own checking account number.
My bank does this. However, there is a down side. The bank takes the money out of my account when they write the check, not when the check clears. In fact, I do not get to see whether or not the check has cleared because the money was no longer in my account. The only way I would know if a check got lost in the mail is when the payee sends another bill.
Our bank did this and it was a very unpleasant surprise.

However, it turned out there was a second choice (not the 'default') which was to request that the account be set so that the amount is not deducted until the check is presented.

The reason for the 'default', I was told, was as a 'service to the bank's customers', who would otherwise lose track of checks they'd written and then overdraw their accounts.
Good to know (NOT!). :annoyed
Thanks, but no thanks.

So we switched it, and it worked the way we wanted it to, and the way we had initially expected it to work!

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

Post by montanagirl »

KingAAAA3 wrote: Sat Jul 24, 2021 6:33 pm For anyone who still balances a checkbook out there the old fashioned way, each debit card purchase is more bookkeeping as well. Much more time and effort spent keeping track of each of these purchases versus paying off and entering one monthly credit card bill.
I'm used to writing down the amount in the ledger just like for a check.

With a credit card you usually have to sign, right?
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Re: Use credit card at stores instead of debit?

Post by 02nz »

montanagirl wrote: Sat Jul 24, 2021 9:39 pm
KingAAAA3 wrote: Sat Jul 24, 2021 6:33 pm For anyone who still balances a checkbook out there the old fashioned way, each debit card purchase is more bookkeeping as well. Much more time and effort spent keeping track of each of these purchases versus paying off and entering one monthly credit card bill.
I'm used to writing down the amount in the ledger just like for a check.

With a credit card you usually have to sign, right?
Some merchants still make you sign but mostly the practice is obsolete.
sport
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Re: Use credit card at stores instead of debit?

Post by sport »

ResearchMed wrote: Sat Jul 24, 2021 9:27 pm However, it turned out there was a second choice (not the 'default') which was to request that the account be set so that the amount is not deducted until the check is presented.
That is very interesting. I don't think my bank gives a choice. However, it is worth a phone call to find out. Thanks!
chalet
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Re: Use credit card at stores instead of debit?

Post by chalet »

prepaid debit cards are available, with no bank account info required.

the most you can lose is what you have loaded onto the card.
desconhecido
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Re: Use credit card at stores instead of debit?

Post by desconhecido »

ResearchMed wrote: Sat Jul 24, 2021 7:37 pm ...

When we were running our vacation rental business, when I would tell a gueat that we were returning their Security Deposit, along with the regular 'thank you/etc.," I'd tell them what the envelope would look like and NOT to through out any business sized envelopes until after they had received the check.
Annoying.

I don't know if that is still how the checks appear. i suppose we could send a check to ourselves to see :wink:

RM
Those of us old enough, and perhaps younger people too, expect a check to look like what we used to call "safety" checks. But, today you might get a check that's printed on just normal looking copier paper. Banks accept them through mobile deposit, so who am I to complain?
Ivygirl
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Re: Use credit card at stores instead of debit?

Post by Ivygirl »

I use my debit card at the grocery store, the place I am most likely to overspend. Using a credit card I will buy too much.

Last shopping trip (using credit card) I bought a kitten toy for $15 - that round thing with a little ball that goes on a track. Hours of frustration for kitty, hours of amusement for kitty's owner. But really she was enjoying a paper grocery bag just as much. I'm pretty sure I would have taken that toy out of my cart if I had been using debit.

I saved hard for 10 years to avoid ending up old and broke. I don't have to be quite so militant now, but I do still have to be careful. Debit helps me be careful. That is all.
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slowandsteadywins
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Re: Use credit card at stores instead of debit?

Post by slowandsteadywins »

I use You Need a Budget (YNAB) to keep track of my budget and values of my money, to include investment amidst other priorities and goals. A huge benefit of this is their credit card feature. It ensures that I count the money charged to my credit card as "spent" and not available. It also allows me to feel confident in turning on auto pay for statement balance, rather than paying them off weekly or monthly in full to avoid missing a payment. This allows me to have my money earn more interest, and keep it in my possession longer.

I do use cards based on purchases and rewards depending on what merchant I am spending at. I use the points to get cash back or redeem points for travel, etc.
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anoop
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Re: Use credit card at stores instead of debit?

Post by anoop »

My debit card has a daily limit of $1000 so it cannot take the place of a credit card.
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ApeAttack
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Re: Use credit card at stores instead of debit?

Post by ApeAttack »

Broken Man 1999 wrote: Sat Jul 24, 2021 5:10 pm I use rewards cards for any purchase that doesn't charge a use fee. DW, OTOH uses her debit card far more than her credit cards. She misses a lot of rewards. :oops:
I created a cheat sheet on the back of a business card to help my wife and I keep track of where to use our various credit cards. I occasionally catch her not using the appropriate card for a certain place... oh well. I'm sure I do plenty of things not to her liking. :P
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Re: Use credit card at stores instead of debit?

Post by Derpalator »

ApeAttack wrote: Sun Jul 25, 2021 2:29 am
Broken Man 1999 wrote: Sat Jul 24, 2021 5:10 pm I use rewards cards for any purchase that doesn't charge a use fee. DW, OTOH uses her debit card far more than her credit cards. She misses a lot of rewards. :oops:
I created a cheat sheet on the back of a business card to help my wife and I keep track of where to use our various credit cards. I occasionally catch her not using the appropriate card for a certain place... oh well. I'm sure I do plenty of things not to her liking. :P
Yep, DW does the same for me each QUARTER. Need to transition to Apple Pay and do a macro to pull up note to tell me which card to use first. :oops:
UpperNwGuy
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Re: Use credit card at stores instead of debit?

Post by UpperNwGuy »

My wallet only has credit cards. The debit cards stay in a small box at home. About five or six times a year I put one of the debit cards into my wallet for a trip to the ATM to get cash. When I get home, the debit card goes back into the box.

I haven't kept a hard copy check register for nearly twenty years. I log all my transactions into into financial software that displays a register for each account (checking, savings, and credit card). It tells me how much I've spent so far that month, how much I have left to spend, and what categories I've spent it in.
DarkHelmetII
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Re: Use credit card at stores instead of debit?

Post by DarkHelmetII »

1) Credit card safer for reasons stated
2) Debit cards, IMHO, do carry a certain behavioral advantage, in that there is something psychological about the $$ immediately being gone (but this is exactly what also makes debit cards "riskier")

Bottom line: if you are digging out of debt and have in the past struggled with running up massive credit debt, I would argue the behavioral / psychological advantages outweigh the risks of a debit card. Otherwise, get a good cashback credit card and use it prudently.
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HanSolo
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Re: Use credit card at stores instead of debit?

Post by HanSolo »

Watty wrote: Sat Jul 24, 2021 8:04 pm
Broken Man 1999 wrote: Sat Jul 24, 2021 5:10 pm I have never used a debit card. When the credit union sends an ATM/debit card, I call them and they make it an ATM card only.
Me too.

I have even had a bank tell me they no longer issued plain ATM cards and they only issed debit cards now when I called the 800 phone number after they sent me a new debit card to replace my ATM card.

My response was , "OK, let me get your name again so that when I close my accounts in a few weeks I can explain that I am closing them because you would not send me an ATM card." They quickly changed their story and I had an ATM card in the mail in a few days. :twisted:
Any idea if the above will work with Charles Schwab? I have a debit card from them, and they told me they don't offer ATM-only cards. I'd rather not close the account because it reimburses ATM fees overseas.
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anon_investor
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Re: Use credit card at stores instead of debit?

Post by anon_investor »

HanSolo wrote: Sun Jul 25, 2021 6:42 am
Watty wrote: Sat Jul 24, 2021 8:04 pm
Broken Man 1999 wrote: Sat Jul 24, 2021 5:10 pm I have never used a debit card. When the credit union sends an ATM/debit card, I call them and they make it an ATM card only.
Me too.

I have even had a bank tell me they no longer issued plain ATM cards and they only issed debit cards now when I called the 800 phone number after they sent me a new debit card to replace my ATM card.

My response was , "OK, let me get your name again so that when I close my accounts in a few weeks I can explain that I am closing them because you would not send me an ATM card." They quickly changed their story and I had an ATM card in the mail in a few days. :twisted:
Any idea if the above will work with Charles Schwab? I have a debit card from them, and they told me they don't offer ATM-only cards. I'd rather not close the account because it reimburses ATM fees overseas.
No idea about Schwab, but for Ally Bank using the card control feature in their mobile app, I can disable the debit function of the card so it works as an ATM card only.
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Re: Use credit card at stores instead of debit?

Post by oldcomputerguy »

My brother used his debit card one day at his local gas pump, and was the unwitting victim of a card skimmer. A day or two later, he found this out by noting that his checking account had been cleaned out.

Credit cards have much better protection against fraudulent activity, and expose the owner to much less liability in cases of fraud than do debit cards. I never, ever use a debit card to purchase anything; all our spending ends up going on credit cards. The only time my debit card leaves my wallet is to access cash at my brick-and-mortar bank's ATM. These days, with touchless credit cards, Apple pay, and online shopping, even that has become very seldom.
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hudson
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Re: Use credit card at stores instead of debit?

Post by hudson »

My practices:
Credit cards only. I try to use contactless payments by watch, phone, or card.
I get cash with an ATM-only card; my unused debit card is locked up at home.
I have a pre-paid visa card with $100 on it.
I carry $200 in cash.
Retrotied
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Re: Use credit card at stores instead of debit?

Post by Retrotied »

Just went through this with my family as they all used debit cards. Got everyone on board as follows 1) credit card that never circulates in public and is used for PayPal, Amazon, Netflix etc. recurring charges ; 2) favorite local gas stations’s card solely used at pump which are highest risk of compromise but it is just a gas card; 3) a second credit card for point of sale use. Even with chips and being vigilant, it gets compromised somehow probably twice a year. No biggie, dispute the charges if the bank didn’t beat you too it with fraud alert, get new card, nothing else to change since nothing recurring tied to it. Rarely use debit and only then at bank teller machine.
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