Why do people use debit cards?

[mugs]

Originally posted by: FallenHero

Originally posted by: mugsywwiii

Originally posted by: Aboroth

Originally posted by: mugsywwiii
The check you used to pay your bill probably cost more than the interest you earned on the money you spent.

So use online paying, direct withdrawl from your checking account. You could even make automatic bill payments if you want to.

Yeah I know. I was just saying what several other people have already said... the amount you make on interest in those few weeks is miniscule. I usually use my debit card because it really makes no difference to me, but stores are charged around 3% of all credit card transactions by the credit card company.

that 3% may be changed. There is a class action suit headed by wal-mart to stop that, and visa and mastercard may get fined up to 3 billion dollars. I saw the legal notice in my bosses mail, she had me read it over to see if she was reading it correctly.

Wow... I guess Wal-mart could have a point, seeing as how the credit card companies basically have them by the balls... they can't NOT accept credit cards or they'd lose customers. But on the other hand, I have a hard time feeling sorry for Wally World.

Edit: Hmmmm... my understanding of how it works is that VISA and Mastercard are essentially processing companies that handle the transactions, but the money you are borrowing comes from the bank that issues the credit card (not debit card). So the bank would get all of the interest, right? Then how would Visa and Mastercard make money? Or is what I said wrong?

 

[Cat13]

I too get cash back for using my debit card. I can't remeber the last time I used a check. I don't even think I have checks anymore

 

[boggsie]

In my case, I use a credit card and absolutely REFUSE to have a debit card issued by my bank.

If my wallet is taken and my credit card is fraudulently used, the money initially comes out of the pockets of the credit card company. Yes, I must submit the paperwork to substantiate the fraudulent use of my card, but during this process, the money is in an 'escrow' account. My money is in my bank account.

If the same scenario occurs with a debit card, the situation is completely reversed. Initially, the money comes out of my checking account and I have to go through the process in order to get the money back into my account.

Also, when I pay for gas with a credit card, I might only buy $5 worth of gas, but because I pay at the pump and authorize before paying, a hold for $40 is placed on my credit card. Again, the situation is different in the case of my bank account and a debit card.

This is why I DO NOT use a debit card.

 

[PistachioByAzul]

I spend money I have.

 

[Miramonti]

Originally posted by: boggsie
In my case, I use a credit card and absolutely REFUSE to have a debit card issued by my bank. If my wallet is taken and my credit card is fraudulently used, the money initially comes out of the pockets of the credit card company. Yes, I must submit the paperwork to substantiate the fraudulent use of my card, but during this process, the money is in an 'escrow' account. My money is in my bank account. If the same scenario occurs with a debit card, the situation is completely reversed. Initially, the money comes out of my checking account and I have to go through the process in order to get the money back into my account. Also, when I pay for gas with a credit card, I might only buy $5 worth of gas, but because I pay at the pump and authorize before paying, a hold for $40 is placed on my credit card. Again, the situation is different in the case of my bank account and a debit card. This is why I DO NOT use a debit card.

how do you get cash then?

 

[Yossarian]

Originally posted by: mugsywwiii

Originally posted by: Aboroth
With credit cards, you can build a credit history which can be important for many things. Debit cards can't do that.

Someone recently suggested that there ought to be a credit FAQ out there somewhere... I second that idea. I've heard all sorts of different information about credit, and I really don't know what is right and what is wrong. I read one place that it's bad to use your credit card for everyday purchases then pay it off at the end of the month, because it still looks like you're carrying a balance (because you almost always have a balance on the card). Then I've also heard that it's good to use it and pay it off. I've also heard that it's good to use it and NOT pay it off completely, because that makes you look profitable to credit card companies. I'd just love it if someone who could speak with some authority (not hearsay) would put it all in black and white.

I use my Discover for everyday purchases, have a Visa for places that don't take the big D, and pay them both off every month. My credit score is almost 800. I charge about $25k per year. It isn't that complicated.

 

[spanky]

Do you people really not have that much self control?

yes

 

Originally posted by: mugsywwiii

Originally posted by: FallenHero

Originally posted by: mugsywwiii

Originally posted by: Aboroth

Originally posted by: mugsywwiii
The check you used to pay your bill probably cost more than the interest you earned on the money you spent.

So use online paying, direct withdrawl from your checking account. You could even make automatic bill payments if you want to.

Yeah I know. I was just saying what several other people have already said... the amount you make on interest in those few weeks is miniscule. I usually use my debit card because it really makes no difference to me, but stores are charged around 3% of all credit card transactions by the credit card company.

that 3% may be changed. There is a class action suit headed by wal-mart to stop that, and visa and mastercard may get fined up to 3 billion dollars. I saw the legal notice in my bosses mail, she had me read it over to see if she was reading it correctly.

Wow... I guess Wal-mart could have a point, seeing as how the credit card companies basically have them by the balls... they can't NOT accept credit cards or they'd lose customers. But on the other hand, I have a hard time feeling sorry for Wally World.

Edit: Hmmmm... my understanding of how it works is that VISA and Mastercard are essentially processing companies that handle the transactions, but the money you are borrowing comes from the bank that issues the credit card (not debit card). So the bank would get all of the interest, right? Then how would Visa and Mastercard make money? Or is what I said wrong?

visa and mastercard get a cut of the purchase itself. American Express charges more of a % than the others, which is why its not so widly accepted, but they have some of the best benifits. Now Visa and Mastercard have charged the same for both credit and debit cards. However, a debit card is basically like a check, so the businesses are losing TONS of money because Visa and Mastercard may take 3% off the top. That can add up very quickly. From what I can recall of the letter, if the business has an option of entering your pin (such as best buy), they dont get such a big cut. What Visa and Mastercard did was not distinguish between debit cards and credit cards, so the business had no idea that they were a debit card, even though they might have rejected the use of it. They were being charged the same % off the top for both, when the debit card should have been MUCH lower (cut in half or more). Ill have to read more into it, but thats a brief summery.

 

[dabuddha]

Originally posted by: Angrymarshmello
It's called spending within your limits. It helps prevent some people from spending what they don't have. And wow, a whole nickel of interest on your checking account! Break out the bubbly! I personally never use it for anything except ATM withdrawls because I'm paranoid if someone got a hold of the number, but I can understand the folks that do use it

Exactly. I don't want to get caught up in the whole I bought this and that on credit. My philosophy is if I can't afford to pay cash for it, I can't afford to own it yet.

 

Originally posted by: dabuddha

Originally posted by: Angrymarshmello
It's called spending within your limits. It helps prevent some people from spending what they don't have. And wow, a whole nickel of interest on your checking account! Break out the bubbly! I personally never use it for anything except ATM withdrawls because I'm paranoid if someone got a hold of the number, but I can understand the folks that do use it

Exactly. I don't want to get caught up in the whole I bought this and that on credit. My philosophy is if I can't afford to pay cash for it, I can't afford to own it yet.

except for emergancies. That is why I have one...that and online spending, but I make sure I have the cash first.

 

[mugs]

Originally posted by: PipBoy

Originally posted by: mugsywwiii

Originally posted by: Aboroth
With credit cards, you can build a credit history which can be important for many things. Debit cards can't do that.

Someone recently suggested that there ought to be a credit FAQ out there somewhere... I second that idea. I've heard all sorts of different information about credit, and I really don't know what is right and what is wrong. I read one place that it's bad to use your credit card for everyday purchases then pay it off at the end of the month, because it still looks like you're carrying a balance (because you almost always have a balance on the card). Then I've also heard that it's good to use it and pay it off. I've also heard that it's good to use it and NOT pay it off completely, because that makes you look profitable to credit card companies. I'd just love it if someone who could speak with some authority (not hearsay) would put it all in black and white.

I use my Discover for everyday purchases, have a Visa for places that don't take the big D, and pay them both off every month. My credit score is almost 800. I charge about $25k per year. It isn't that complicated.

Yeah, it's that simple... there aren't any other factors involved at all...

Lesson in logic:
If A then B
B is true
A is not necessarily true.

I didn't want people to post their personal experience, I want someone who can post with some authority about how credit scores are computed.

 

[RU482]

Originally posted by: Chumpman
With credit cards if you play the margin correctly you don't have to pay for something for 60 days, the whole while incurring interest on the money. Do you people really not have that much self control?

Your one of those guys that not only tries to pricematch every hot deal, but argues with 3 or 4 CSR's before you get the deal, AREN'T YOU

 

[mjquilly]

Originally posted by: boggsie
In my case, I use a credit card and absolutely REFUSE to have a debit card issued by my bank.

If my wallet is taken and my credit card is fraudulently used, the money initially comes out of the pockets of the credit card company. Yes, I must submit the paperwork to substantiate the fraudulent use of my card, but during this process, the money is in an 'escrow' account. My money is in my bank account.

If the same scenario occurs with a debit card, the situation is completely reversed. Initially, the money comes out of my checking account and I have to go through the process in order to get the money back into my account.

Also, when I pay for gas with a credit card, I might only buy $5 worth of gas, but because I pay at the pump and authorize before paying, a hold for $40 is placed on my credit card. Again, the situation is different in the case of my bank account and a debit card.

This is why I DO NOT use a debit card.

My debit card only shows $1 temp charges for gas purchases, I've never seen higher than that.

 

[elanarchist]

visa and mastercard get a cut of the purchase itself. American Express charges more of a % than the others, which is why its not so widly accepted, but they have some of the best benifits. Now Visa and Mastercard have charged the same for both credit and debit cards. However, a debit card is basically like a check, so the businesses are losing TONS of money because Visa and Mastercard may take 3% off the top. That can add up very quickly. From what I can recall of the letter, if the business has an option of entering your pin (such as best buy), they dont get such a big cut. What Visa and Mastercard did was not distinguish between debit cards and credit cards, so the business had no idea that they were a debit card, even though they might have rejected the use of it. They were being charged the same % off the top for both, when the debit card should have been MUCH lower (cut in half or more). Ill have to read more into it, but thats a brief summery.

But, this was better for consumers, because when you have to pay using your PIN, your bank charges you at least 50 cents. With debit, there is no extra charge for you, because its the merchant whos paying all of the transaction costs.

 

[Yossarian]

Originally posted by: mugsywwiii

Originally posted by: PipBoy

Originally posted by: mugsywwiii

Originally posted by: Aboroth
With credit cards, you can build a credit history which can be important for many things. Debit cards can't do that.

Someone recently suggested that there ought to be a credit FAQ out there somewhere... I second that idea. I've heard all sorts of different information about credit, and I really don't know what is right and what is wrong. I read one place that it's bad to use your credit card for everyday purchases then pay it off at the end of the month, because it still looks like you're carrying a balance (because you almost always have a balance on the card). Then I've also heard that it's good to use it and pay it off. I've also heard that it's good to use it and NOT pay it off completely, because that makes you look profitable to credit card companies. I'd just love it if someone who could speak with some authority (not hearsay) would put it all in black and white.

I use my Discover for everyday purchases, have a Visa for places that don't take the big D, and pay them both off every month. My credit score is almost 800. I charge about $25k per year. It isn't that complicated.

Yeah, it's that simple... there aren't any other factors involved at all...

Lesson in logic:
If A then B
B is true
A is not necessarily true.

I didn't want people to post their personal experience, I want someone who can post with some authority about how credit scores are computed.

Do your own fvcking research then.

 

Originally posted by: elanarchist

visa and mastercard get a cut of the purchase itself. American Express charges more of a % than the others, which is why its not so widly accepted, but they have some of the best benifits. Now Visa and Mastercard have charged the same for both credit and debit cards. However, a debit card is basically like a check, so the businesses are losing TONS of money because Visa and Mastercard may take 3% off the top. That can add up very quickly. From what I can recall of the letter, if the business has an option of entering your pin (such as best buy), they dont get such a big cut. What Visa and Mastercard did was not distinguish between debit cards and credit cards, so the business had no idea that they were a debit card, even though they might have rejected the use of it. They were being charged the same % off the top for both, when the debit card should have been MUCH lower (cut in half or more). Ill have to read more into it, but thats a brief summery.

But, this was better for consumers, because when you have to pay using your PIN, your bank charges you at least 50 cents. With debit, there is no extra charge for you, because its the merchant whos paying all of the transaction costs.

depends on the bank. I get free transactions with mine, as my mother is one of the managers.

But true, the consumers were winning. The businesses though were losing huge, thats why only businesses are invited into the class action, and they can take either side of it.

 

[Sid59]

hrm .. pay immediatly or wait 60-90 days and realize you withdrew too much money and can only pay x% of the bill. Not fun.

 

[djheater]

Originally posted by: RossMAN
I only use my debit card for two types of transactions:

1) Paying for groceries and stuff at Albertson's, Walmart, K-Mart, CostCo, Safeway, USPS and you can get cash back for whatever amount you want.
2) ATM to withdraw cash

Other than that 100% credit card.

I get points on my Debit card. It's against all conventional wisdom and I'll prolly get burned for it someday, but I use it for everything.

I've gotten about $300 in gift certificates so far this year from it.

 

[boggsie]

Originally posted by: jjsole

Originally posted by: boggsie
In my case, I use a credit card and absolutely REFUSE to have a debit card issued by my bank. If my wallet is taken and my credit card is fraudulently used, the money initially comes out of the pockets of the credit card company. Yes, I must submit the paperwork to substantiate the fraudulent use of my card, but during this process, the money is in an 'escrow' account. My money is in my bank account. If the same scenario occurs with a debit card, the situation is completely reversed. Initially, the money comes out of my checking account and I have to go through the process in order to get the money back into my account. Also, when I pay for gas with a credit card, I might only buy $5 worth of gas, but because I pay at the pump and authorize before paying, a hold for $40 is placed on my credit card. Again, the situation is different in the case of my bank account and a debit card. This is why I DO NOT use a debit card.

how do you get cash then?

The classic ATM card that can only be used as an ATM card.

 

[Miramonti]

Originally posted by: boggsie

Originally posted by: jjsole

Originally posted by: boggsie In my case, I use a credit card and absolutely REFUSE to have a debit card issued by my bank. If my wallet is taken and my credit card is fraudulently used, the money initially comes out of the pockets of the credit card company. Yes, I must submit the paperwork to substantiate the fraudulent use of my card, but during this process, the money is in an 'escrow' account. My money is in my bank account. If the same scenario occurs with a debit card, the situation is completely reversed. Initially, the money comes out of my checking account and I have to go through the process in order to get the money back into my account. Also, when I pay for gas with a credit card, I might only buy $5 worth of gas, but because I pay at the pump and authorize before paying, a hold for $40 is placed on my credit card. Again, the situation is different in the case of my bank account and a debit card. This is why I DO NOT use a debit card.

how do you get cash then?

The classic ATM card that can only be used as an ATM card.

ah, forgot about them...them cards from 'back in the day'.

 

[boggsie]

Originally posted by: jjsole

Originally posted by: boggsie

Originally posted by: jjsole

Originally posted by: boggsie In my case, I use a credit card and absolutely REFUSE to have a debit card issued by my bank. If my wallet is taken and my credit card is fraudulently used, the money initially comes out of the pockets of the credit card company. Yes, I must submit the paperwork to substantiate the fraudulent use of my card, but during this process, the money is in an 'escrow' account. My money is in my bank account. If the same scenario occurs with a debit card, the situation is completely reversed. Initially, the money comes out of my checking account and I have to go through the process in order to get the money back into my account. Also, when I pay for gas with a credit card, I might only buy $5 worth of gas, but because I pay at the pump and authorize before paying, a hold for $40 is placed on my credit card. Again, the situation is different in the case of my bank account and a debit card. This is why I DO NOT use a debit card.

how do you get cash then?

The classic ATM card that can only be used as an ATM card.

ah, forgot about them...them cards from 'back in the day'.

 

[psianime]

I carry two things in my wallet for protection and one of them is a credit card. :beer:

 

[NikPreviousAcct]

You don't have to have a credit approval for a debit card.

Chumpman, try asking the question the other way around

What's with people who use Credit Cards? Do they not have the self control to wait until they have the money to buy something because they just GOTTA HAVE IT?

 

[chiwawa626]

Can't buy money orders on credit...so for that debit is better i guess...other then that i really dont know...but its easyer not having to pay bills you just spend the money you have..

 

[her209]

Bah, CC sucks.