Debit cards vs. credit cards for purchases

[wonky]

@JacksonRoykirk

I use a debit card because I don’t have any other alternative. To be honest, I have lousy credit. My debit card on the other hand is limited to the amount of money I actually have in my checking account and is more convenient than carrying around a checkbook.

You might consider getting a secured credit card and using it in exactly the same way in an effort to start rebuilding your credit.

My husband is currently rebuilding his credit after a bankruptcy he took over 10 years ago.

[Canadjun]

@kanicbird

[
No longer a issue, at least one very popular CC issuing bank (Chase) has the option to autodebit your bank account the full amount that you owe every month on the last day of your billing cycle. They also have a great many ‘rewards’ cards.

So will American Express, at least in Canada.

@American Express

Pre-authorized Payment Plan from American Express
As an American Express Cardmember, the Pre-authorized Payment Plan can save you time and money with on time, automatic payments of your American Express billing statement. Your payments are requested automatically from your Canadian dollar chequing account on the payment due date.

You can set up the Pre-authorized Payment Plan to pay:

* The minimum payment or full payment of your American Express account billing statement
* The full payment of your American Express Charge Card billing statement

[gfloyd]

My brother had his debt card number stolen a few years ago and his account cleaned out. His bank fixed everything by the end of business the next day. I use the same bank and the only time you get charged for debit transactions is if you have the crappiest account type, which is free. And all you have to do to get around it is ask the clerk to use the card as a credit card. And if a bank tried to change it policy due to some fine print issue, I can’t imagine that every consumer reporter in the state wouldn’t be jumping up and down on that story.

Where I work, our registers are so antiquated that we can’t do debit transactions, they all go through as credit, which I tell people when I take their debt cards. I’ve been screamed at by many a customer for that, for no definable reason.

That being said, I use my credit card not my debit card because I get airline miles.

[ParentalAdvisory]

@gfloyd

Where I work, our registers are so antiquated that we can’t do debit transactions, they all go through as credit, which I tell people when I take their debt cards. I’ve been screamed at by many a customer for that, for no definable reason.

How does that work? A debit card is not a credit card.

[Clothahump]

@ralph124c

DO NOT use debit cards. they offer NONE of the protections afforded by credit cards. if a thief gets your PIN number, he can clean out your account and you have NO recourse (other than to find the thief, hire a lawyer, and sue him in civil court).

Not so. This very thing just happened to me. Wells Fargo has investigated and the money has been refunded (major props to them), and I have filed a police report. If they catch the guy, he/she/it will be charged with credit card abuse, which is a felony.

I mainly want to find out how the SOB got my pin number.

[Frank]

@ParentalAdvisory

How does that work? A debit card is not a credit card.

Many, if not most, debit cards have a Visa/MasterCard brand on them and can be used either way. The only difference is how much the transaction costs the merchant, and how long it takes the money to come out of your account.

[spingears]

@ralph124c

DO NOT use debit cards. they offer NONE of the protections afforded by credit cards. if a thief gets your PIN number, he can clean out your account and you have NO recourse (other than to find the thief, hire a lawyer, and sue him in civil court).
Nope, use your credit card-you are only liable for the first $50.00 of a fraudulent purchase, and the bank will represent you (with their own legal staff0, in any action concerning fraudulent use of your card!

I’ll second that.
Some credit cards send an annual listing of various classes of purchase made during the previous 12 months which is handy for tax purposes if needed. Also assists in cutting areas of spending that is getting out of hand.

[Mister_Rik]

@ParentalAdvisory

How does that work? A debit card is not a credit card.

It’s just a matter of how the transaction is handled by the merchant. The rest is just accounting at the bank’s end of it. I use my debit card to make all sorts of purchases over the Internet, and no site has ever asked if it was a debit or credit card. That tells me the online merchant simply runs it as a credit card transaction, and the bank handles the rest.

[gfloyd]

@ParentalAdvisory

How does that work? A debit card is not a credit card.

In general, if they ask for you to enter your pin, it’s a debt transaction. If you sign for it, it’s a credit transaction.

[JCorre]

Just to be accurate, when it comes to interchange transactions (meaning VISA, Matercard, AMEX Discover etc. aka non-PIN based txns):

• Unauthorized charges must be 100% covered according to Federal Regulation E. This is regardless of type (credit or debit) and regardless of issuing bank. Banks tout 100% unauth protection like its something they do out of the goodness of their heart, but they are all compelled to do it. Unless the issuer determines that the txn actually was initiated by you can they deny the claim (this is almost never done in my experience). They would need significant documentation that you did the txn in case you decide to sue them.

• IIRC it is against VISA’s (not sure about MC but I would think them too) rules for merchants to charge extra for using a credit/debit cards. If the merchant’s acquiring bank knew about it they would probably warn them, then fine them if they continued doing it. I’ve seen merchants do it myself and it always irritates me.

With PIN based transactions the rules are somewhat softer in what issuing banks must cover and not cover. The premise is the same though; if they can make a case that it was actually you then they can deny the claim. With PIN based txns it just gives them another data point to use to make that case.