Why would one ever use a debit card over a credit card?

[Anonymous]

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@wasCB14 wrote:

Possible reasons...

3. Occasionally there are discounts or surcharges, depending on the method of payment.

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In Michigan the gas stations charge extra, usually 10 cents a gallon. With gas being well under $2 a gallon the surcharge cancels reward points. Use a debit card, no surcharge. 

Off subject: in my support for small local restaurants I'm paying cash. My short term loss for their gain.

[Anonymous]

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@wasCB14 wrote:

Possible reasons...

3. Occasionally there are discounts or surcharges, depending on the method of payment.

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Right

One thing apparently missed by many is that some debit cards do pay rewards.

I personally have"good" (i.e. reward positive) uses, making use of such debit cards  , e.g. Paypal Business Debit which usually pays 1%, this month 2%

1) Verizon FiOS auto payment.   There is a discount for setting up autopay with a debit card.  On my spend, the discount + 1% cashback is better than a credit card alternative

2) Paying income tax through the IRS approved processers.   Generally a small (e.g. $4) fee for using a debit card, vs a ~ 2% fee for a credit card.   So the small fee + 1 or 2% back can outweigh cc rewards after the fee.    When you could use the PPMC as backup (RIP) this generated 3% rewards for a tiny fee.   (This year I used my 5% credit card though)

[vic6string]

Religious reasons. They worship at the Church of Dave Ramsey.

[CAS2019]

I will use my debit (or cash if I have it on me) when paying for purchases if the business is a local, small business.  The debit "fee" businesses have to pay, is less.  Small businesses have a much more difficult time absorbing costs in this economy than larger companies

[Anonymous]

I remember 25-30 years ago a radio DJ announced how to pay for a program he was discussing. He said, or use your credit card, then said softly, "its like not paying for it at all".

People run up balances and pay just the minimum, and they don't feel it as the minimum payment goes up negligibly. Many who have done that got into big trouble. Then they switched to debit and won't touch credit cards again.

If you have problems managing money and debt, use debit. If you are able to manage cards easily, use credit.

[kdm31091]

With finances things are very rarely one size fits all. Some people don't like using any type of card/electronic payment and use cash for everything. Some don't want a bank account and use prepaid cards.

In the case you are asking about, many people do not feel they are disciplined enough to pay a credit card off in full every month. Whether their belief is justified or not, it's not worth getting 1-5% back in rewards if you are paying 15 or 20 or 25% interest. And since many people will rack up a balance and only pay minimum, they'd lose more than they gain by using a credit card. For those, debit is better.

And some people may not have the debt concern but just do not like using credit cards, out of principle. Whether I agree that with that or not, it's their finances and their choice.

[icednightpaper]

Self-Control, Discounts for autopay/debit, Ignorance (willful or not)...everything that has been said previously. I'd say don't get messed up in how people manage their money. If rewards cards users weren't such a tiny majority, we wouldn't exist at all.

[Racer202]

a friend of mine does extremely well and she uses her debit card everywhere she goes. at this point she is well invested and credit card points and rewards matter little to her. i suppose the convenience of one card suits her.

[Girlzilla88]

I only have my Debit Card set up for some bills that don't accept CC as I noticed it clears faster or pops up faster in my CU then when I put the Routing etc for the Bank itself (not sure why but I have tried it a few times to test it).     It puts a 'hold' for a few days and clears whenever it feels like when it have it set up for Acct vs when I set up the Debit it pops up for that day or the next day shows it cleared out.   YMMV 

[notmyrealname23]

My credit union gives me an interest rate on checking that would be pretty good for a multi year CD, let alone a savings account, for a balance up to $15,000. It's a significant amount of cash back, and it's an incentive to SAVE not SPEND (unlike credit card cash back incentives to SPEND).

The catch is I have to use the debit card for that account 12 times a month.

So I do. Apple Pay helps with that.