Why no debit card?

[SpoilerVirgin]

*Originally posted by nineiron *
**One other small negative I’ve noticed since using a check card rather than a check: as I write in each transaction (at the end of the day), while not using many actual checks, I’m filling up the check register way too fast. Lots of checks are left, so I am not ordering new ones. But the register fills up and I’m left with an imbalance. I wonder if you can just order the register without ordering checks… **

Just walk into your bank branch and ask for a register or two. They hand them out for free (at least my bank does). I use the ATM and debit card frequently, plus I do all sorts of weird balancing tricks with my register (I subtract each credit card purchase out as I make it), so I’m always running out of register space and having to go pick up new ones.

[amarone]

*Originally posted by Lorenzo *
**Given a $50.00 pile of coins of which I’m guessing at least 40% will be pennies, higher if the coin pile is ever “raided” or the quarters are used for laundry or vending machines and such, you will have perhaps 40 rolls of pennies, a roll and a half of quarters, four plus rolls of dimes and two plus rolls of nickels.

Does it make sense to waste the time sorting and rolling nearly fifty rolls of coin and then waiting in line at a bank or grocery store customer service counter or spend the $4.45 and using the time doing whatever one wants? **

Why let the $50 of coins build up in the first place? I find it pretty easy to pay an amount that avoids accumulating change. Transaction total = $4.87? Pay $5.12 and get a quarter back. You’ve got rid of two coins rather than adding three by mindlessly handing over $5.

As for cards, I don’t carry a check book - if you are a man and don’t wear a jacket, the check book doesn’t fit anywhere. I use debit when I want cash-back, and credit card otherwise to accumulate rewards.

[amarone]

*Originally posted by gotpasswords *
**More and more retailers (especially big ones like WalMart) “truncate” checks. What this means is the store reads the MICR numbers at the bottom of the check and transmits the routing and account info to their bank. Your check is destroyed at the store, or they’ll give it right back to you at the register, saving them the effort of shredding it later.

Why do they do this? Primarily, they get the money immediately. Most retailers “close their batch” at the end of the day, but some do hourly batches, because they have so many transactions. Also, their bank offers them a discount rate on the merchant services because their bank doesn’t have to mess with physically handling paper checks.**

Plus once the check is in electronic form, it makes it easier for the retailer to automatically resubmit NSF checks at times of the month when they think the check is most likely to be honored.

[Lorenzo]

*Originally posted by Otto *
**Like I said, my credit union requires a $25 minimum deposit. Say they have a $500 paycheck. They can cash it at a currency exchange which will charge probably 10% and be out $50, or they can open a credit union account for $25 and be up $25 from the start. Then they never have to pay that $50 to Mister Money again. Don’t order checks and get the debit card, which will not allow them to spend more than they actually have, and even the most undisciplined person should be fine.

My credit union lets me cash in my loose change bucket for free too. **

I’m not sure whether just anyone can open an account at a credit union, whether all credit unions have a $25 minimum balance or whether currency exchanges are conveniently located everywhere througout the world. I would imagine opening a credit union account in the US would at least require a valid ID and a valid Social Security card and in some areas at least minimal fluency in the local language.

It also takes time and effort and some arithmetic skill to balance a check book or a debit card account. Simply being unable to overdraw a debit card does not offset the fact that most people want to know how much is in the account. Just because one cannot overdraw the account does not mean one can spend in an undisciplined fashion and still be able to make the rent. Having a debit transaction refused is pretty embarassing and can be costly if other important bills are yet to be paid. With cash, the user always knows how much he has at all times without any record keeping required.

For people with no aptitude for arithmetic or record keeping, or who lack appropriate identification or transportation, cashing a paycheck at a currency exchange can be a rational choice. My point is that everyone who uses a currency exchange is not necessarily a moron. The currency exchange user may be making the best of a bad situation.

[Lorenzo]

*Originally posted by amarone *
Why let the $50 of coins build up in the first place? I find it pretty easy to pay an amount that avoids accumulating change. Transaction total = $4.87? Pay $5.12 and get a quarter back. You’ve got rid of two coins rather than adding three by mindlessly handing over $5.

Maybe it’s a forced savings plan.

Maybe his dad always did it.

Or maybe the guy or gal hates accumulating change in the purse or pocket but isn’t the sort of person who can perform three or four digit subtraction in his head, especially if it require “borrowing.”

IMHO the average Doper is quite a bit more educated and intelligent than the average Joe.

[Angel_of_the_Lord]

I have a debit card, and I have checks. For most of my purposes, though, checks are much more useful. See, anywhere on campus will take a check written out to my university, but only the main administration student accounts desk will take a debit/credit card. Also, most of the places that take a debit car d will take a check (the notable exception being the McDonaldses near campus).

I don’t know. Money feels more real to me when it’s represented by something other than plastic. Still, I end up using my debit card more often, simply because I don’t want to piss off people standing behind me in line.

[3waygeek]

*Originally posted by Orbifold *
A debit card is fractionally more secure than a credit card. If someone steals your credit card and can copy your signature (helpfully provided on the back) then they can use it fraudulently until you get to a phone and call your bank. But to your debit card fraudently someone has to both steal the card and determine your PIN.

However, your liability for a stolen credit card is limited by US law to $50; no such legal limit exists for debit cards, although some banks do provide liability protection.