Debit cards are a useless hassle

[Dawn]

As others have mentioned, there are times that a debit card meets someone's needs in ways that a credit card does not.  After a move (and my reluctance to sever ties to my original financial institution) my only "free" source of cash access was obtaining "cash back" at the grocery store, with debit card purchases.  It sure beat cash advances with a credit card that charged transaction fees and did not allow a finance charge grace period for cash advances.

When considering rewards programs, some debit card issuers (Chase is one) are providing rewards programs, but it still doesn't tempt me to switch from my credit card to my debit card.  The only thing I use my new debit/ATM card for at this point is to obtain cash at the ATM machine.  On a side note, I found it interesting that when we opened the Chase account, we were not allowed to opt out of receiving the card.  My husband never uses it, so we shredded his and I guard mine with my life.  :-)

For those who don't keep a generous balance cushion in their checking account (and keep meticulous records of their debit card usage) I would suggest shredding their debit card.  I'm thinking of the youth in my life who tend to use their debit cards at fast food restaurants multiple times a day and end up purchasing some VERY expensive sodas when their account becomes overdrawn.  I would much rather see them use a credit card ... IF ... they can be disciplined enough to PIF on time every month.

Actually ... I would much rather see a system in place that doesn't encourage all of us to use financial payment methods that incease the cost of the merchandise that everyone ends up paying for.  Technology is great ... but with everything ... you pay the price for it.  :-(

[Anonymous]

Seems the debit vs credit card debate is always good for stirring up the pot. We just recently switched from exclusive debit card use (for 10 plus years) to exclusive credit card use (we canceled our debit cards, PIF the CC each month).  We did get a couple of ATM only cards for easy access to our cash, but linked the ATM cards to a separate checking account with no overdraft protection.  There is no doubt that we are taking the threat of identity theft to the max.  And the fact is, it'll probably never be an issue for us.  But there is no "cost" to the way we do things now, and it makes me feel better.

krystofur

[CreditDrama85]

i agree that debit cards def can be evil but the point is clearly to avoid having a high cc balance or balance at all,  when your cc statment closes.

that is why a lot of people use debit for everyday expenses and credit for purchases over a certain dollar amount.

Message Edited by CreditDrama85 on 01-05-2008 07:24 AM

[Anonymous]

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CreditDrama85 wrote:

i agree that debit cards def can be evil but the point is clearly to avoid having a high cc balance or balance at all,  when your cc statment closes.

that is why a lot of people use debit for everyday expenses and credit for purchases over a certain dollar amount.

Message Edited by CreditDrama85 on 01-05-2008 07:24 AM

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Agreed. The problems associated with high credit card debt and are much greater then the current threat of identity theft.

Message Edited by krystofur on 01-05-2008 07:34 AM

Message Edited by krystofur on 01-05-2008 07:34 AM

[rubaty]

I have used a VISA debit card since 1995 and have never had any problems.  I use it for everyday expenses and use a CC for other purchases.  I have 15 major CC's but see no reason to use them all if I have the money in my checking account.   

I have lost my debit card before and all I had to do is call the CU and they instantly closed the account and sent me a new card.  My VISA debit card affords me the same protections that any other VISA provides.  The problem that I have seen people have is that they wait days or weeks before they report the card lost/stolen which is the dumbest thing that you can do!

[Anonymous]

To add one more thing: I don't have to worry about what day the statement date is going to drop or if the CCC will report twice a month. I like the convenience of it taking the money out of my account (which that is what it is supposed to do).

I only use CC's to play the FICO game, the rewards are an extra bonus.

Now to the OP, if you are worried about one customers check being returned and you can't cover it, that is a problem within itself, especially with all of the over-draft protections that are out.