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10 Places not to use your Debit Cards
- Thread starter TraderTactics
- Start date
I think since debit cards acts more like cash, it enables them to withdraw money or to have the cost of purchases charged directly to their bank account. Service charges are levied. And although they don't get rewards like credit cards, they are not being charged with interests and all that as well.Quote from GTS:
I've never understood the attraction of debit cards and when they are forced on me by my bank I simply stick them in a safe for storage never to be used.
Why would you ever want to use a debit card instead of a credit card when the latter gives you cash back (or other rewards), free use of money until the end of the billing cycle and better consumer protections backed by law?
The only advantage of the debit card I can see is for weak-minded people who can't control their spending with a credit card and end up racking up cc bills they can't pay off at the end of the month.
There is a little trick to avoid being charged interest on your credit card - its called paying off your balance every month.Quote from TraderTactics:
And although they don't get rewards like credit cards, they are not being charged with interests and all that as well.
If you are still confused, watch this video, it explains everything:
http://videosift.com/video/SNL-Dont-Buy-Stuff-You-Cant-Afford
Quote from GTS:
Free transactions?!? Amex pays me (in cash) to make transactions using their credit card, that's a heck of a lot better than free in my book.
Also how is security better with the debit card?
I have a 6 digit pin number, with a credit card number I can make purchase where ever I want over the phone or internet and all I need is your card number. Even in person all I need to do is forge your signature and I have what I want. Credit card fraud costs credit card companies/consumers 500 million per year.
With debit card fraud the amount of work needed to swindle people is more considerable. Usually they use fishy machines that keep your magnet information and use cameras to catch you inputing your pin number.
In the end with both types of cards you will get your money back if someone steals from you, but credit card fraud is alot more successful and easy to do.
As far as Amex giving you cash on your purchases, do you pay a yearly fee for this card? I assume there is an interest rate for outstanding balances? Alot of businesses around here don't even take Amex...so the benefit of 2% cash seems to be not worth the downsides.
I'll grant your point about the PIN security but with a debit card your money is gone from you bank account until they agree to put it back (possibly causing other payments to bounce), with a credit card if there is a fraudulent transaction you just dispute it and that's the end - you are never out the money even temporarily.Quote from Frostie:
In the end with both types of cards you will get your money back if someone steals from you, but credit card fraud is alot more successful and easy to do.
As far as Amex giving you cash on your purchases, do you pay a yearly fee for this card? I assume there is an interest rate for outstanding balances? Alot of businesses around here don't even take Amex...so the benefit of 2% cash seems to be not worth the downsides.
Amex does not have an annual fee on its Blue Cash card, its 5% cash back on gas,groceries and drugstores and 1.25% on everything else. I have no idea what the interest rate is as I never carry a balance so its of no concern to me. Not pushing Amex, plenty of other Visa/Mastercards with different rewards (airline miles, etc) - whatever floats your boat.