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[Wthermans]

What's the actual functional difference to me and to the bank (and to the retailer I guess) if I use my debit card as a credit card besides the fact that I sign something instead of entering a pin number? It still just pulls the money directly out of my checking account.

The money is removed right away with a PIN Debit transaction. It's only held when processed as credit and removed when the retailer settles the transaction. The time difference causes a protection lapse where disputes can take place from stolen cards/fraud/etc.

 

[Future]

Didn't read the whole thread, but hopefully people started agreeing with crankyjay. Much better to use credit cards to build credit and use rewards. The only reason not to is if you just can't trust yourself to go beyond your means. If you pay your balance every month, you pay no interest and there are no negatives.

Courses about credit should be mandatory in schools

 

[turnbuckle]

Borrow now, pay monthy deposit, pay more than minimum to reduce interest charges

for many people, there's a lot of temptation to use credit beyond what they can pay

there's no reason to fear credit, but debit is more practical. people spend what they have rather than interest (even a little, depending on how much it's used) is still an extra, unecessary payment

Been using credit cards for about 7 years and have never paid a cent of interest. Received over a grand in rewards and made a few bucks on the interest the money in my savings/checking generated before it had to be used to pay my monthly balance.

Banks are evil. Using my credit card responsibly instead of a debit card is my way of sticking it to them . Sure, they get their fees from retailers but it's worked out great for me too.

 

[JGS]

The money is removed right away with a PIN Debit transaction. It's only held when processed as credit and removed when the retailer settles the transaction. The time difference causes a protection lapse where disputes can take place from stolen cards/fraud/etc.

on the fraud side of things, the credit card transaction is usually better. Most financial institutions have a 0 liability for those type, but ACH ones can still have a 50 deductible. Ours is 25 I think. We rarely get PIN based fraud for obvious reasons. It usually involves an ex or soon to be ex stealing the card.

The ACH transaction isn't immediate either where I work, It just pops up when it feels like!

Didn't read the whole thread, but hopefully people started agreeing with crankyjay. Much better to use credit cards to build credit and use rewards. The only reason not to is if you just can't trust yourself to go beyond your means. If you pay your balance every month, you pay no interest and there are no negatives.

Courses about credit should be mandatory in schools

I'm indifferent toward the use of them for transactions. For the purposes fof this discussion, the only extra benefits (Outide of rewards and whatnot which are fluff to most people) are in fraud as your money hasn't actually been hijacked.

A lot of people are irresponsible with debit cards, histry has shown me they are even worse with credit cards. I personlly like using one card and then paying it off on the due date, but that is a system and a lot of people aren't good with things like that.

 

[Seraphinianus]

You might as well just carry cash with you

or you might as well just carry a debit card with you

 

[mcrae]

They hold $1. Then charge you the full amount when the transaction goes through. WTF at $70? And if you only have $100 in your checking account something more important is wrong. Like when the fuck are you so broke?

wtf is this hold business. do you guys have to swipe your card before you're allowed to get gas? here we roll up to the pump, pump as much as we want, and only when we walk into the little kiosk/store/stand does the operator have a clue what payment method we're using.

 

[CrankyJay]

No.

I don't carry cash and I don't use credit cards.

Okay. Don't complain then if your account is compromised and you have access to no money while the bank investigates it and hopefully replaces the funds. What do you do in the meantime if you need money during this timeframe?

 

[jett]

People, seriously. Stop fucking using debit cards.

Yes, I should instead use 12 different credit cards and sink into debt like a stupid fuck. AMERICA FUCK YEAH.

 

[R2D4]

wtf is this hold business. do you guys have to swipe your card before you're allowed to get gas? here we roll up to the pump, pump as much as we want, and only when we walk into the little kiosk/store/stand does the operator have a clue what payment method we're using.

You don't pay at the pump? Is this the 80's?

 

[JGS]

wtf is this hold business. do you guys have to swipe your card before you're allowed to get gas? here we roll up to the pump, pump as much as we want, and only when we walk into the little kiosk/store/stand does the operator have a clue what payment method we're using.

That was the good old days until gas went above 2/gallon and people started stealing it. Now everything is pre-pay and the machine checks to see if you have 50-75 availabe before it let's you pump- even if you're only getting twenty. Otherwise you have to march inside and have your pump set for exact amount.

 

[Wthermans]

wtf is this hold business. do you guys have to swipe your card before you're allowed to get gas? here we roll up to the pump, pump as much as we want, and only when we walk into the little kiosk/store/stand does the operator have a clue what payment method we're using.

They stopped that years ago. Gas stations are like some hotels now and will do a pre-authorization of funds in order to prevent drive-offs. Before if you pumped without authorization, then drove off, the station owner is out that money. Now, some stations will authorize for a large amount ($50-$100) in order to cover the risk of a drive-off.

 

[CrankyJay]

Yes, I should instead use 12 different credit cards and sink into debt like a stupid fuck. AMERICA FUCK YEAH.

Yes, because if you own a credit card you automatically go into debt.

 

[Meier]

Also, what the hell is this about only using one or the other? Responsibly use both like a normal person. You can build credit and still buy groceries on your debit card every week, I promise.

Why would I use both? I get hundreds of dollars per year in Amazon gift certificates which are like crack to me. I occasionally use my AMEX if I want to mix it up but the rewards there cost so many points.. ugh.

I only use debit at Sam's since the only card they take is Discover I think.

 

[R2D4]

Yes, I should instead use 12 different credit cards and sink into debt like a stupid fuck. AMERICA FUCK YEAH.

They don't mail you 12 credit cards and force you to use them with a gun to your head.

 

[Stat Flow]

Yes, I should instead use 12 different credit cards and sink into debt like a stupid fuck. AMERICA FUCK YEAH.

You only 'sink into debt' if you're a stupid fuck. Or misguided.

 

[Old Gimlet Eyes]

Yes, I should instead use 12 different credit cards and sink into debt like a stupid fuck. AMERICA FUCK YEAH.

Or you can get 1 credit card that has no annual fee and gives you a reward bonus. Mine is just like that and I pay it off in full every month. I have never paid a cent of interest on my credit card and have actually made money back from the 1% cash back bonus I have. Not to mention building up my credit score. There is nothing wrong with having credit cards as long as you are responsible with them.

 

[TylerD]

Everyone should always use checks, my continued employment depends on it!

Spoiler

it does

 

[Seraphinianus]

Okay. Don't complain then if your account is compromised and you have access to no money while the bank investigates it and hopefully replaces the funds. What do you do in the meantime if you need money during this timeframe?

My chase debit card got cloned a few times. The whole thing was resolved by the bank within a few hours from the time I noticed my pin wasn't working and my card took a few business days to get there. I withdrew money directly from my bank account in the meantime and used my credit card.

 

[Rad Agast]

Okay. Don't complain then if your account is compromised and you have access to no money while the bank investigates it and hopefully replaces the funds. What do you do in the meantime if you need money during this timeframe?

Use my Savings account card?

Use my Credit card?

 

[Future]

on the fraud side of things, the credit card transaction is usually better. Most financial institutions have a 0 liability for those type, but ACH ones can still have a 50 deductible. Ours is 25 I think. We rarely get PIN based fraud for obvious reasons. It usually involves an ex or soon to be ex stealing the card.

The ACH transaction isn't immediate either where I work, It just pops up when it feels like!

I'm indifferent toward the use of them for transactions. For the purposes fof this discussion, the only extra benefits (Outide of rewards and whatnot which are fluff to most people) are in fraud as your money hasn't actually been hijacked.

A lot of people are irresponsible with debit cards, histry has shown me they are even worse with credit cards. I personlly like using one card and then paying it off on the due date, but that is a system and a lot of people aren't good with things like that.

Building credit is a huge advantage that shouldn't be ignored. And cash back from rewards also certainly shouldn't be ignored. Man it sucks that people could feel this way. It benefits the poor actually even more than the wealthy, but the wealthy are usually the only ones that benefit.

 

[CrankyJay]

Use my Savings account card?

Use my Credit card?

I'm talking about people who refuse to use credit cards.

 

[Old Gimlet Eyes]

Everyone should always use checks, my continued employment depends on it!

Spoiler

it does

Don't worry, there are plenty of old people out there who will never give up their precious paper checks. I hated receiving checks at my last AR job, so boring. Get with the times people.

 

[Blitz2o]

People, seriously. Stop fucking using debit cards.

Here in Canada we try and avoid spending money we don't have, that's why I don't use a credit card. Only cash or Debit.

our Debit system makes sense, but I can see how these billionaires would be getting butt hurt about the millions of dollars they would be loosing. Too bad I don't feel any sympathy to those who eat breakfast off of platinum plates.

 

[JGS]

Building credit is a huge advantage that shouldn't be ignored. And cash back from rewards also certainly shouldn't be ignored. Man it sucks that people could feel this way. It benefits the poor actually even more than the wealthy, but the wealthy are usually the only ones that benefit.

I agree about building credit, just not the necessity to use a credit card as a debit card.

Your credit is built up primarily on the limit being high and the balance being low, not necessarily on paying off a balance every month.

The poor consistently get their shot at good credit and as a result...the banks get blamed for being greedy when the poor unsurprisingly turn out to be poor credit risks.

 

[tokkun]

If I have the money to buy something now, why would I charge it to a credit card when I am going to be paying interest on it?

• If you have the money to pay it off, then you won't end up paying interest on it.
• In fact, since you don't have to pay until the end of the billing cycle, that's an extra ~30 days of float for your money to earn interest for you in your bank account.
• Most credit cards offer rewards, such as 1% cash back.
• Increase your credit score, benefit from lower interest rates any time you do need a loan.

There is a lot of financial incentive to use credit cards. That 1% really adds up over time. I wish I could pay for everything with them.

 

[Kusagari]

I like how all the USE CREDIT CARDS people in this thread assume everybody is so easily able to get credit cards to begin with.

 

[CrankyJay]

Here in Canada we try and avoid spending money we don't have, that's why I don't use a credit card. Only cash or Debit.

our Debit system makes sense, but I can see how these billionaires would be getting butt hurt about the millions of dollars they would be loosing. Too bad I don't feel any sympathy to those who eat breakfast off of platinum plates.

You don't necessarily spend money you dont have. You can, but then you're a dumbass.

 

[ToxicAdam]

Okay. Don't complain then if your account is compromised and you have access to no money while the bank investigates it and hopefully replaces the funds. What do you do in the meantime if you need money during this timeframe?

In 2008, fraud related to paper checks - 1.024 Billion

In 2008, ALL debit card fraud (POS, POS pin, ATM) - 788 million

http://www.aba.com/Surveys+and+Statistics/2009_Deposit_Fraud.htm


Credit card fraud? 8.6 billion in 2010

http://security.magtek.com/fraud-statistics/

 

[McLovin]

First, they offer less protection than a credit card if the card is stolen or the number is lifted somehow.

Second, say you buy gas on a debit card and you only need $30 worth. Because it's debit they put a hold of $70 on your card. If you have less than $70 on your card you can get hit with an overdraft fee. But now that the federal gov't passed that overdraft protection law, gas stations can outright deny your debit card if you don't have enough to satisfy your hold. Hell, even if you did have enough money and needed to use that other $40 later that day, you can't because it's on hold.

You don't build credit with debit cards.

You might as well just carry cash with you, or use a credit card but don't spend more than you have in your account.

That only sounds like a problem if you constantly have your balance at the $50 ish range, and if thats the case you shouldn't have a debit card period. Mine never goes below $500.

 

[prodystopian]

Yes, I should instead use 12 different credit cards and sink into debt like a stupid fuck. AMERICA FUCK YEAH.

Because it is impossible to pay off a credit card each month?

http://money.cnn.com/2011/03/10/pf/debit_cards_limit/index.htm

And consumers would end up feeling the pain when Bank of America is forced to recoup costs "by increasing the cost of their everyday debit card transactions, limiting their payment choices, and impacting industry innovation," according to the email.

You didn't bold the best part so I took the liberty for you. Coming up with innovative ways to charge you.

 

[TylerD]

Don't worry, there are plenty of old people out there who will never give up their precious paper checks. I hated receiving checks at my last AR job, so boring. Get with the times people.

Yeah, I write one check a month (rent) other than that everything goes on my CC which I pay off with my bank checking account.

There are still lots of people using checks.

 

[snackman]

what makes you think credit cards are safe too? JP Morgan is one of the biggest banks if there doing this Im sure credit cards would follow down the road too with limits and rates or they might go down for while.

 

[krzy123]

Without the bad "only paying interest" CC users, the responsible ones wouldn't have it so good.

I'm a responsible CC user too.

 

[CrankyJay]

That only sounds like a problem if you constantly have your balance at the $50 ish range, and if thats the case you shouldn't have a debit card period. Mine never goes below $500.

Agreed. But we both know some people operate this way.

 

[andthebeatgoeson]

First, they offer less protection than a credit card if the card is stolen or the number is lifted somehow.

Second, say you buy gas on a debit card and you only need $30 worth. Because it's debit they put a hold of $70 on your card. If you have less than $70 on your card you can get hit with an overdraft fee. But now that the federal gov't passed that overdraft protection law, gas stations can outright deny your debit card if you don't have enough to satisfy your hold. Hell, even if you did have enough money and needed to use that other $40 later that day, you can't because it's on hold.

You don't build credit with debit cards.

You might as well just carry cash with you, or use a credit card but don't spend more than you have in your account.

Who the hell only has $70 in their account? If you only have that much, you shouldn't be making $40 purchases.

 

[Kuran]

This is absolutely, 100% correct. You build credit, have better protections, and get more rewards than using cash alone. Learn some self discipline.

This building credit shit they pull in America is the biggest crock of shit... rewarding people to use their credit card?

It just makes infinitely more sense to use debit. The theft argument is janky as hell. Is crankyJay a JP Morgan stooge?

 

[CrankyJay]

Who the hell only has $70 in their account? If you only have that much, you shouldn't be making $40 purchases.

Poor people do. Or dumbasses. Or people that forget to transfer money over from a savings account. Don't act like this isn't a likely scenario.

 

[JGS]

That only sounds like a problem if you constantly have your balance at the $50 ish range, and if thats the case you shouldn't have a debit card period. Mine never goes below $500.

Keep in mind that most debit cards function exactly the same as credit cards. A credit card POS limit is upwards of 3,500.00. I've bought living room furniture with my card fr a couple of grand.

So the pro-credit card people are correct that it doesn't take much to wipe out a card when a professional skimmer gets a hold of it even if you keep plenty of money. And they will definitely milk it until it's dry, buying stuff in Walmart like they were going out of business.

So it's pretty stressful, but completely refundable.

 

[Old Gimlet Eyes]

This building credit shit they pull in America is the biggest crock of shit... rewarding people to use their credit card?

It just makes infinitely more sense to use debit. The theft argument is janky as hell. Is crankyJay a JP Morgan stooge?

What? Rewarding people? More like knowing who is a responsible person to lend money to or not. I don't see how me building up my credit score is rewarding me at all. My higher score makes me less of a financial risk to lenders, making me get more money when I need that loan. Credit, how does it work?

 

[Kuran]

Agreed. But we both know some people operate this way.

Perhaps they're poor from overspending on their multiple credit cards?

 

[CrankyJay]

Perhaps they're poor from overspending on their multiple credit cards?

Oh come on. Lol.

 

[CrankyJay]

Everybody I know uses debit carts most of the time. Why is it better for me to route everything through some company first for anything but larger purchases?

Read the thread.

 

[Zaraki_Kenpachi]

Who the hell only has $70 in their account? If you only have that much, you shouldn't be making $40 purchases.

This logic makes no sense. Please stop.

 

[Stat Flow]

What? Rewarding people? More like knowing who is a responsible person to lend money to or not. I don't see how me building up my credit score is rewarding me at all. My higher score makes me less of a financial risk to lenders, making me get more money when I need that loan. Credit, how does it work?

This. This so much. I don't get why people don't understand this. Hence the name credit.

 

[Gameboy415]

I like how all the USE CREDIT CARDS people in this thread assume everybody is so easily able to get credit cards to begin with.

Seriously.

I've managed to stay out of debt mainly because I've never had/needed a credit card.
If these debit card limitations do happen, I may have to jump in though.

Another thing I haven't seen come up is that there is almost always an annual fee for credit cards.
Are a handful of gift certificates worth $100+ in annual fees a year?

 

[Kuran]

What? Rewarding people? More like knowing who is a responsible person to lend money to or not. I don't see how me building up my credit score is rewarding me at all. My higher score makes me less of a financial risk to lenders, making me get more money when I need that loan. Credit, how does it work?

Credit Cards in the US have plenty of reward systems.

Some pay you back 1% of whatever you spent that year,... bullshit like that.

 

[Future]

My bad can't read

 

[CrankyJay]

Seriously.

I've managed to stay out of debt mainly because I've never had/needed a credit card.
If these debit card limitations do happen, I may have to jump in though.

Another thing I haven't seen come up is that there is almost always an annual fee for credit cards.
Are a handful of gift certificates worth $100+ in annual fees a year?

Holy fuck. Why do people equate credit card with debt? If you have 2k in your bank don't spend more than 2k on your credit card. Simple.

 

[JetBlackPanda]

WTF? I have enough money in my account to use my own fucking money, why would I want to use a Credit Card? I seriously don't get it? I cant stand it when I go to rent a car and they are like uhhhh credit card??

uhhhh I can afford it with my own money..

 

[Zaraki_Kenpachi]

Holy fuck. Why do people equate credit card with debt? If you have 2k in your bank don't spend more than 2k on your credit card. Simple.

So why can't they just do it as debt and then they are physcially unable to and have one less bill to worry about? Why make things more complicated for the same desired result?