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Posts: 30,826
Registered: ‎02-07-2013
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Re: Using Credit Cards in public instead of using a Debit Card


Roarmeister wrote:

myjourney wrote:

Not sure about the dangers but I use CC's for the reward points and then just pay off the bill monthly...

Why use a debit card which comes directly from my bank account when I can get money or miles out the deal with the same  amount of money out of my bank account?


My debit card gives me air miles rewards.  And my bank guarrentees me Zero liability for stolen debit card / errors (as all Canadian banks do!).  Debit card fees are a lot cheaper for stores than credit cards per transaction and thus they are more willing to pay me back with rewards.  I don't see the downside.  But then again I'm Canadian and we lead the world in debit card usage by a w-i-d-e margin.  I got my first real debit card back in 1983 which was 3 years before the other banks even figured out what the Interac and Plus debit system were!

 


InterestingSmiley Surprised

Thanks for the info

You all have better Healthcare too...If it wasn't for all that snow I might move..Lol

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Have you done your research of the CC?
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New Contributor
Posts: 59
Registered: ‎03-23-2013
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Re: Using Credit Cards in public instead of using a Debit Card

"People who prefer making money and are generally more financially knowledgeable don't use debit. When I first got my USAA debit card, it did offer rewards, but USAA cancelled that a few years ago. I don't know of any debit cards that earn rewards anymore. So, of course, everyone uses credit now. Using debit when you have rewards cards is not smart. I think most people have this kind of common sense, which is why I don't actually know anybody who uses a debit card. Wouldn't you rather earn extra money just for living and doing your normal everyday spending?"

Using my debit card 12 times a month gives me a super Hugh interest rate which equates to paying me 75$ per month. It's also zero liability.
Frequent Contributor
Posts: 351
Registered: ‎04-21-2012
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Re: Using Credit Cards in public instead of using a Debit Card


myjourney wrote:

Roarmeister wrote:

myjourney wrote:

Not sure about the dangers but I use CC's for the reward points and then just pay off the bill monthly...

Why use a debit card which comes directly from my bank account when I can get money or miles out the deal with the same  amount of money out of my bank account?


My debit card gives me air miles rewards.  And my bank guarrentees me Zero liability for stolen debit card / errors (as all Canadian banks do!).  Debit card fees are a lot cheaper for stores than credit cards per transaction and thus they are more willing to pay me back with rewards.  I don't see the downside.  But then again I'm Canadian and we lead the world in debit card usage by a w-i-d-e margin.  I got my first real debit card back in 1983 which was 3 years before the other banks even figured out what the Interac and Plus debit system were!

 


InterestingSmiley Surprised

Thanks for the info

You all have better Healthcare too...If it wasn't for all that snow I might move..Lol


Well better is a matter of opinion... yes the health care is universal and easier to access.  A major problem like cancer or a heart attack won't bankrupt you financially.  Speedy it is not!  But we are making strides to improve that.

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____25k________25k________20k________31k________25k___
Starting Score: 732 October 2007; Current Score: 800 EQ; TU 826, November 2016; Goal Score: 810 by end of 2016
Oldest Reporting Account: 14.8 years; EQ AAoA: 6.7 years; typical credit utilization 1.6% typical single card utilization 9.8%
Moderator Emerita
Posts: 27,204
Registered: ‎09-13-2012
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Re: Using Credit Cards in public instead of using a Debit Card

I rarely use my debit card. last week when I was in DMV to register my DS motorcycle (they don't take cc's Smiley Mad) my mouth fell open trying to remember the stupid PIN. Luckily, my DS knows my PIN and helped me out of an awkward situation.

Jeez, I must be getting old.
Super Contributor
Posts: 6,236
Registered: ‎02-23-2011
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Re: Using Credit Cards in public instead of using a Debit Card


Dubious wrote:

When you use a debit card, it's your money at risk.


+1

 

I can't imagine a more uncomfortable notion than something with a direct link to my bank account.  Not only will I refuse to use a Debit and/or ATM card, but I any amount in excess of $1,000 automatically is swept into a brokerage account where it is impossible to tap into by any outside source.

New Contributor
Posts: 74
Registered: ‎03-07-2013
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Re: Using Credit Cards in public instead of using a Debit Card


jugstore wrote:

Any time you use your card in public you make it suceptible to skimming devices.  Credit cards are not less likely to get skimmed, but if you are going to get defrauded then it's "better" if someone fraudulently uses your credit card and not your debit card.  The overall risk of getting your card information collected and used fraudulently is low, but it happens.

 

Scenario 1:  Joe Schmoe has $2000 in his checking acct and uses his debit card for everything.  Someone skims his debit card info and makes a $1500 purchase for international plane tickets.  Joe's landlord called because his $800 rent checked bounced.  He gets evicted and dies a lonely death on the street because his $1500 was tied up and unavailable during the bank's investigation and he couldn't pay the bills.

 

Scenario 2:  Joe Einstein uses his credit card everywhere.  His card also gets skimmed and those same geniouses are buying more international plane tickets with Mr. Einsteins card info.  Joe sees the fraudulent purchase and the credit card company takes care of it before his next statement posts.  Joe Einstein's only disappointment:  Chase immediately  took back those UR points earned on the fraudulent ticket purchase.  Smiley Sad bawww

 

 

Scenario 1 didn't play out all the way in my case (whew!) but I had to stretch things reaaaallllll thin for almost a week while the bank sorted out a large fraudulent purchase that almost emptied my checking account.  Had the purchase been made on a CC it would be much less of a headache.


Lol, solid explaination.

 

I never use my debit card for purchases nowadays. The only thing I use it for is depositing money into my checking account at my bank (I don't use direct deposit, I like going to the bank in person.)

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Super Contributor
Posts: 6,236
Registered: ‎02-23-2011
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Re: Using Credit Cards in public instead of using a Debit Card


Commandolam wrote:

I never use my debit card for purchases nowadays. The only thing I use it for is depositing money into my checking account at my bank (I don't use direct deposit, I like going to the bank in person.)


These days, I use mobile deposit exclusively.  Now, I'm not sure if it's any safer, but I guess we'll find out in the next several years!  Smiley Very Happy

Valued Contributor
Posts: 2,489
Registered: ‎01-22-2012
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Re: Using Credit Cards in public instead of using a Debit Card


sergi0wned wrote:

I'll wait for the experts to chime in, but from my understanding I think a lot of it comes down to fraud protection.

 

Debit cards are linked directly to your bank account, so if the security were to be compromised, it's gives the hacker direct access to your money. From what I understand, it's a more difficult process to get your money back after fraudulent activity when dealing directly with a bank.


Credit cards add an extra layer of security between your purchases and your bank account. Most credit cards will give you $0 fraud liability, and disputing fraudulent charges is easier since there's additional protection of your funds.


There's 2 main reasons IMO to use credit over debit:

 

1. Fraud protection, which others have mentioned several times already in this thread

2. MUCH higher financial return (via points) when compared to using debit.

 

A third reason (for those cards that offer it such as Amex) would be purchase protection (and other related) benefits.

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Super Contributor
Posts: 7,132
Registered: ‎02-27-2013
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Re: Using Credit Cards in public instead of using a Debit Card


CreditScholar wrote:

sergi0wned wrote:

I'll wait for the experts to chime in, but from my understanding I think a lot of it comes down to fraud protection.

 

Debit cards are linked directly to your bank account, so if the security were to be compromised, it's gives the hacker direct access to your money. From what I understand, it's a more difficult process to get your money back after fraudulent activity when dealing directly with a bank.


Credit cards add an extra layer of security between your purchases and your bank account. Most credit cards will give you $0 fraud liability, and disputing fraudulent charges is easier since there's additional protection of your funds.


There's 2 main reasons IMO to use credit over debit:

 

1. Fraud protection, which others have mentioned several times already in this thread

2. MUCH higher financial return (via points) when compared to using debit.

 

A third reason (for those cards that offer it such as Amex) would be purchase protection (and other related) benefits.


+1

jugstore also gave a very nice detailed example.

Some banks are able to issue you provisional credit for fradulent debit transactions, whereas some banks will force you to wait until the investigation is over.

I would really avoid using debit cards unless I absolutely have to (i.e. at DMV).

 

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Valued Contributor
Posts: 2,489
Registered: ‎01-22-2012
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Re: Using Credit Cards in public instead of using a Debit Card


enharu wrote:

CreditScholar wrote:

sergi0wned wrote:

I'll wait for the experts to chime in, but from my understanding I think a lot of it comes down to fraud protection.

 

Debit cards are linked directly to your bank account, so if the security were to be compromised, it's gives the hacker direct access to your money. From what I understand, it's a more difficult process to get your money back after fraudulent activity when dealing directly with a bank.


Credit cards add an extra layer of security between your purchases and your bank account. Most credit cards will give you $0 fraud liability, and disputing fraudulent charges is easier since there's additional protection of your funds.


There's 2 main reasons IMO to use credit over debit:

 

1. Fraud protection, which others have mentioned several times already in this thread

2. MUCH higher financial return (via points) when compared to using debit.

 

A third reason (for those cards that offer it such as Amex) would be purchase protection (and other related) benefits.


+1

jugstore also gave a very nice detailed example.

Some banks are able to issue you provisional credit for fradulent debit transactions, whereas some banks will force you to wait until the investigation is over.

I would really avoid using debit cards unless I absolutely have to (i.e. at DMV).

 


I'm going to risk sounding like a bit of an idiot here, but there are banks that force you to wait until the investigation is over instead of a provisional credit?

 

Every time this has happened to me (only a few thankfully), I've always received a provisional credit while they looked into it.

EX 798, EQ 789, TU 784
American Express Platinum (NPSL) || Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Barclays American Airlines Aviator Red World Elite Mastercard - $20,000 CL || Chase IHG Rewards World Mastercard - $25,000 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL || Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank Hilton Reserve Visa Signature - $20,000 CL || J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL

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