topic Re: New app lets you use your credit card like a debit card in Credit in the News

New app lets you use your credit card like a debit card

Anonymous — Fri, 23 Mar 2018 19:08:16 GMT

https://finance.yahoo.com/news/new-app-lets-use-credit-card-like-debit-card-203719715.html

Re: New app lets you use your credit card like a debit card

Anonymous — Fri, 23 Mar 2018 20:49:53 GMT

This looks interesting. Would work for someone like me who pays my balance any chance I get. Just too bad it's only for iOS at the moment.

Re: New app lets you use your credit card like a debit card

DaveInAZ — Fri, 23 Mar 2018 21:08:51 GMT

Debx is an app that lets users automatically pay off credit card purchases right away by linking the card to a checking account.

Um, no thanks. Besides the cashback rewards, another reason I pay everything with a CC is the interest free "float" - right after a statement cuts you get almost 2 months to PIF with no interest, while my $$$ to pay it sits in a savings account earning interest. It's not that freakin' hard to keep in mind your monthly income and not charge more than you can pay in full.

Re: New app lets you use your credit card like a debit card

Anonymous — Sat, 24 Mar 2018 03:57:29 GMT

Easier said that done for many people, unfortunately.

Re: New app lets you use your credit card like a debit card

arkane — Mon, 26 Mar 2018 14:33:29 GMT

Entrepreneur Ben Psillas launched the app last year after looking for a way to remedy one of his biggest pain points.

“Every time I used my debit card I had this negative reaction because I wasn’t getting any points or rewards,” he told Yahoo Finance. “I love my credit card rewards, but I didn’t like paying off a large monthly bill. I knew there had to be a better way.”

Unless you plan on carrying a balance, paying off a "large monthly bill" vs "small daily bill" makes no difference. The way I see it, this app at best is a psychological crutch, and is a 100% unnecessary additional security risk.

I can only imagine how messy this could get if your linked credit card(s) get stolen.

Re: New app lets you use your credit card like a debit card

DaveInAZ — Mon, 26 Mar 2018 15:38:41 GMT

@arkanewrote:
Entrepreneur Ben Psillas launched the app last year after looking for a way to remedy one of his biggest pain points.

“Every time I used my debit card I had this negative reaction because I wasn’t getting any points or rewards,” he told Yahoo Finance. “I love my credit card rewards, but I didn’t like paying off a large monthly bill. I knew there had to be a better way.”

Unless you plan on carrying a balance, paying off a "large monthly bill" vs "small daily bill" makes no difference. The way I see it, this app at best is a psychological crutch, and is a 100% unnecessary additional security risk.

I can only imagine how messy this could get if your linked credit card(s) get stolen.

Two excellent points, especially the last one. I hadn't even considered that one. Your credit card # gets hacked through no fault of your own, like a merchant data breach, and the hacker charges $2k on your CC - Zap!, the app automatically tries to pay it from your $1500 bank balance. Zap! Nice hefty OD charge, but I guess it's not as bad as your having a $2100 balance & the app manages to pay the fraudulent charges.

Re: New app lets you use your credit card like a debit card

arkane — Mon, 26 Mar 2018 15:57:26 GMT

To be fair the article does mention you can set payment rules, such is only paying transactions <$100 automatically from your checking.

Still though the point stands. It's much easier to deal with CC fraud when it's the bank's money on the line, and they have every incentive to get it sorted out ASAP. However when it's your money and you've already lost hundreds (or thousands) of dollars, good luck balance chasing the bank lol.

Rewards debit cards do exist, and if you really can't trust yourself enough with credit, those are a much better option IMHO.

Re: New app lets you use your credit card like a debit card

Anonymous — Mon, 26 Mar 2018 17:49:46 GMT

I can see the risks here stated by above users. Interesting to see how this plays out in the long run.

Re: New app lets you use your credit card like a debit card

Anonymous — Wed, 28 Mar 2018 16:40:21 GMT

@arkanewrote:

I can only imagine how messy this could get if your linked credit card(s) get stolen.

Or if you need to dispute a transaction.

I suspect this app will create more problems then it solves. It's not like we have to wait for the statement in the mail, write a check and put a postage stamp on the envelope to pay off our credit cards anymore. Debit cards already exist and with credit card apps available on smart phones, it's easier then ever to pay off your credit card. I think people who don't like paying off a large monthly bill should instead just make multiple payments throughout the month.