The Folly of Using a Debit Card

[llecs]

Prior to rebuilding our credit, DW and I were cash only. We never had a problem with using cash for car rentals, hotels, and the like. Even today, with better credit, if given the choice between using a CC or cash, we still use cash.

This week, the family and I are in Houston, TX. I reserved a multi-night stay at a Residence Inn while we visit family (they have only one extra bedroom and didn't want to sleep our family of 5 on the floor). I secured the room with my BofA Debit Card. Dumb! I know. Considering that I had plenty of other CCs to choose from.

Fast forward to the weekend. I check in and they ask if they would like to use the card on file (debit card). I say no and pay about $1200 in cash. They did say they wanted to secure the room with a credit or debit card to cover for "incidentals". I guess they thought our 4 yo would party too much. If I were to use a debit card, it would be $50/night or $300 all together. For a CC, it is just $50 and used that.

Well, I looked online after staying here for a couple days and noticed they charged my debit card for $1240 after paying cash. This charge was a temporary charge but zapped needed-budgeted cash for this trip. Annoying!!! They finally released the funds this morning, but we had to face the decision to either change our plans, take from savings, or use CCs, none of which I wanted to do.

This is the last time I'll ever use a debit card for a hotel.

[MidnightVoice]

I am surpised you got caught in this trap.    This is one of my major anti-Dave Ramsey rants - when they block out that money it can take up to two weeks to unblock it 

I always use a CC for hotels and car rentals, even if I then decide to pay the bill in cash.

I hope you still manage to have a good holiday

[llecs]

At the chagrin of fellow mods, DR is a good guy, but I do disagree with him on points such as this. The only way to avoid this problem would be to NOT reserve the room and show up paying cash. Of course I'd have to also fork out the extra, refundable $300 for incidentals. At least the hotel returned the $$$. They also offered to return the $50 used as security. I told them to keep it as they have yet to meet our kids.

[MidnightVoice]

This is a classic example of why using a CC can save you money.

If you can control yourself and use it sensibly that is    DR seems to be useful for addicts

Message Edited by MidnightVoice on 12-23-2008 10:54 AM

[Lel]

In general, the use of debit cards is not as secure as the use of credit cards.  If your credit card is stolen and used fradulently, then you can dispute the charges and get a new card and not have any liability for the fraudulent charges.  You're free to use the card and your credit line, though you might get some phone calls from the credit card company to make sure that any new charges are legitimate.  If your debit card is stolen, it takes a lot longer for the mess to be cleaned up, and in the meantime your cash is inaccessible until everything is resolved.

[MidnightVoice]

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Lel wrote:

If your debit card is stolen, it takes a lot longer for the mess to be cleaned up, and in the meantime your cash is inaccessible until everything is resolved.

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Unless it WAMU, when it is never resolved and the cash is never returned (DD's debit card # was stolen and used in Canada) 

[haulingthescoreup]

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llecs wrote:
At the chagrin of fellow mods, DR is a good guy...

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We love you anyway, llecs!

I mostly agree --he has good ideas, but he gets on his hobbyhorse and rides it far beyond the point of common sense.

[llecs]

**************UPDATE**************

Wowzers......this vacation of ours sure is teaching us a lesson.

1) I paid cash to the Residence Inn.....they did reverse the $$$ and all was well. Unfortunately, DW, the kids and I returned after a day of family on Christmas Day to a room we were locked out of. The keys didn't work at all. I left everyone next to our room door and marched down to the front office only to find that locked. My room key didn't work and nobody was on duty. I banged the door over and over and over. Rang the door bell. Called 411 to call the office. No luck. So, I loaded up the kids to find another hotel. We drove around some, but came back to ours to find it staffed once again.

If we could not get into our room, I could dispute the charges if a CC and get the $$$ back for that one night. I can't dispute a cash payment.

2) Our trip then took us to New Orleans, where we are now. DW used her BofA Amex to book a hotel off Canal street for a "large suite, non-smoking" room. The pictures made it look so good, but at $59/night, I was very skeptical. Nonetheless, we checked in and paid Cash in lieu of a CC for 2 nights. The room was terrible. The floor was wet. There was "stuff" caked on the sheets. There was dirt in the bed. It was a reg. sized room. There was no hot water. And the room was a smoking room and was adorned with ash trays. Finally, I guess being Sugar Bowl weekend, people ran up and down the halls and banged on the doors at all hours. DW wanted out so we went down the street to the Marriott.

We insisted they refund us for the night we didn't stay (tonight) and they said "No". I asked to speak to the manager and again said "No". So, with a lobby full of potential customers, I proceeded to tell them everything wrong with our room and included every detail, "caked-on" stuff and all. The manager then said to follow him and he took me to a back office and locked the door. I restated everything in detail and he obliged to a cash refund.

Had I used a CC, even DW's BofA Amex, then all we had to do is dispute and that would be that. The pictures we took do NOT lie.

[haulingthescoreup]

Eeeeewwwww!

I'm so sorry, that sounds like WAY more of an adventure than anyone needs, especially with little kids in tow.

A great first-person report of how CC's can be useful.

I hope the Marriott is treating you better. We stayed at the Homewood Suites on Poydras. Not exactly vintage New Orleans decor, but clean and comfortable, with a separate LR and BR. And they serve red beans and rice on Monday nights, as God intended things to be!

Fingers crossed for happier stays from here on out!

[llecs]

Marriott is way better. We are on Canal St. but closer to the water than the other hotel. Spent time at the aquarium, had begnits (sp?) and coffee at Cafe du Monde. We asked a couple locals for the best cajun place and both independently said "Acme Seafood Co.". Awesome place (line stretched a half block). We all split seafood gumbo, fried crawfish, crawfish etouffette (sp?), oysters on the half shell (DD is an oyster addict), and we also split up an oyster and shrimp po boy. For dessert, the kids had ice cream, I had bread pudding, and DW had a banana fosters' cheesecake. I'm TJing my own post, but I am hungry again. Sadly, we are leaving in the morning.