Hey, Lay off of my Debit Card!!

Discussion in 'Off The Beaten Track' started by nubka, Mar 10, 2011.

  1. nubka

    nubka Well-Known Member

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  2. Satellitegirl

    Satellitegirl New Member

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    It's not a problem if it's a Visa(or other type) debit...because you can just use the credit card option.
  3. BigB08822

    BigB08822 Well-Known Member

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    If they are going to cap it at something as low as $100 or even $50 then just do away with them all together. I might as well carry cash for amounts below $100 and certainly for amounts below $50. I doubt this ever happens, if it does then I will just go to cash. I think banks are trying very hard to become a thing of the past.
  4. vesperholly

    vesperholly Well-Known Member

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    WTF!! I only ever use my debit card. Cash is like water through my hands. However, I almost always sign it instead of entering my PIN. The only time I use my pin is if I want cash back under $20, like $5 to get coffee.
  5. FiveRinger

    FiveRinger Well-Known Member

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    I understand that the banks make all of their money on fees, now, especially since there are so many people who are having financial problems and the other ways in which the banks made money aren't guaranteed. But this is just ridiculous. I just hope people don't go back to stuffing money under mattresses to avoid all of this.
  6. Lanie

    Lanie Well-Known Member

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    I use my debit card a lot. I prefer it to cash because I always know how much money I've got in my bank account. I can get why they charge for things (ie I now have a checking fee, whatever) but...this is kind of ridiculous. BAH.
  7. talulabell

    talulabell New Member

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    The problem with this is, it will only hurt the customer. I use my debit card a lot, and often it's more than $50. It's a great way to stay out of debt and not have to carry cash. If they cap it, what option does that give me? I now have to use credit, putting me into debt.

    Dumb question: why is the fed meddling in this fee? the store pays 44 cents to the credit card company. Are the stores lobbying to get this fee reduced? And why would the reduction be over 70%?? Thats a huge reduction all at once.

    If you ask me (not that anyone would), this is not the type of reform that wall street needs.
  8. Jenny

    Jenny From the Bloc

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    Not sure how many posting on this thread are American, but I can tell you this would be a very hard sell in Canada. As I understand it, usage by Canadians is among the highest if not the highest in the world, with more transactions by debit than cash for years now.

    When I lived in the US for a couple of years, I was surprised at how little Americans used debit by comparison, and how in many places it was a big fuss when you asked to pay that way (ie cashiers having to dig out machines and not sure of what to do).
  9. milanessa

    milanessa engaged to dupa

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    That may be because using a credit card provides more protection for the consumer (under American law, don't know about Canadian law) so most Americans tend to use that rather than a debit card. I know I do.
  10. genevieve

    genevieve drinky typo pbp, closet hugger Staff Member

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    I'm in the US and most people use debit cards for everything. I tend to still carry some cash, but I know plenty of people who never have cash at all.

    Now that I've read the article...wow. Commerce has really shifted in the last 15 years toward use of debit cards. Few businesses will accept checks anymore, and encouraging people to use credit cards seems like a slippery slope after the crash a few years ago. This really feels like going backwards.
  11. Jenny

    Jenny From the Bloc

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    Might have been a New York thing - it tends to be an island in more ways than one :lol:
  12. milanessa

    milanessa engaged to dupa

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    Not in this part of the US. Merchants take them but I almost never see someone using it except at an ATM or the grocery store.
  13. HisWeirness

    HisWeirness Yay, new board!

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    In my experience, cash is used a lot more in NY than in other areas of the US. There are a lot more cash-only places in NY. I always have to stop at the ATM before heading to NY to make sure I have enough cash. Also, restaurants in NY often refuse to split checks so you need the cash to split the bill with your dining companions.
  14. numbers123

    numbers123 Well-Known Member

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    I only use my debit card to get cash out. We use our Discover card for everything except gas which we use a AAA card. Both of those cards give us cash back and we pay them off. The use of these cards allow us to determine where/what our spendig habits are. We use cash for things like fast food/small purchases - but that is too easy to loose track of what your expeditures are
  15. KCC

    KCC Active Member

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    Yes, merchants lobbied hard to get fees reduced because customers were using their debit cards to pay for very small cost items. 44 cents on high-cost items is not the same as 44 cents on a cup of cheaper coffee. Banks probably did not see this regulation coming. I have always use my credit cards and never debit -- just by habit -- I get to make a tiny bit more interest on my cash in the bank, and then I pay off the credit cards at the end of every month to avoid all financing fees. Debit has advantages, too, but I never felt the need to switch over from credit.
  16. PrincessLeppard

    PrincessLeppard Well-Known Member

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    I belong to a credit union, and I get 10 cents back for every debit transaction, sent out in a check at the end of the year.

    To avoid fees, see if you can join a credit union. They just seem to treat their people better, in my experience. YMMV.
    LadyNit and (deleted member) like this.
  17. Hannahclear

    Hannahclear Well-Known Member

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  18. genevieve

    genevieve drinky typo pbp, closet hugger Staff Member

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    Another fan of credit unions here, although I only use credit unions for savings right now, so I've never used a debit card for one. But I belong to 2 credit unions that are giving me between 6-7.25% on my cash. The dinky saving account attached to my main checking account (which I just keep for more liquid cash) is something like .5% :scream:
  19. Anita18

    Anita18 Well-Known Member

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    I only use credit cards (except when shopping at small local businesses), but I'm never in debt because I pay my balance off in full every month. It's a sweet way to get rewards. :D

    Using a debit card scares me because it's a direct line to my checking account. If someone steals that thing...:scream: A friend of mine had a hell of a time trying to get money back from Washington Mutual when someone stole her account information and they didn't believe that her PIN and debit card info could be stolen. :rolleyes: If someone steals my credit card info, I just cancel it and they'll refund my money and send a new card no sweat.

    I also prefer using a credit card because I don't always have the money sitting in my checking account - every month I transfer the exact amount I need to pay my bills from my savings account. It maximizes interest, which is a bit silly right now because the rates are so low, but it's a habit that I haven't gotten out of, and I know exactly how much I'm spending every month. :lol:

    I know what you mean though. My bf associates credit cards with debt so he ALWAYS uses debit. I figure we don't share accounts, so if his info gets stolen it's not my money on the line. :shuffle:
  20. JILEN

    JILEN New Member

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    So they will force us to make more transactions to raise revenue? or force us to use cash so they can charge us often to go to ATM? Brilliant idea :confused:.
  21. mmscfdcsu

    mmscfdcsu Skating Pairs with Drew

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    I have never used a debit card. My financial advisor says they are unsafe and have fewer protections than a credit card. Um...you can't get into credit card debt if you pay the bill in full every month. :shuffle:
  22. attyfan

    attyfan Well-Known Member

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    I heard the same thing ... apparently the 50 limit that you can get hit with if your credit card is lost or stolen doesn't apply to debit cards. I'm another who uses only a credit card -- that is paid off in full each month, so no debt.
  23. Skate Talker

    Skate Talker Active Member

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    I also never use debit. I use credit card 99.99% of the time except for purchases under about $7.00. Like Anita18, I pay off the card in full each month, (in fact it is automatically paid from my chequing account on the due date), and find this is absolutely the best method for me to keep track of my expenses each month. And I too have been in the habit of only transferring enough money into my chequing account just before that date so that I can maximize any interest in my savings account. In addition I have a cash-back credit card. When my mother re-furnished her living room we used my card for the transactions. The due date on it always worked out really great compared to her own credit card. We were able to keep her money in her savings account for almost an additional month and she was definitely getting a good interest rate there, so both of us were winning on these transactions.

    On the other hand, I seem to recall a recent news story up here in Canada, that merchants were trying to encourage consumers to use their debit cards instead of their credit cards because the bank fee to the merchant is significantly LESS for the debit card. Of course, if at all possible they would prefer the consumers to use cash rather than any type of card, but although the odd merchant was offering reduced charges for cash transactions, not too many were going that far. Merchants were basically telling consumers that the more they use credit cards the more everyone will be paying for their purchases because of course the merchants couldn't possibly absorb these costs. (When have they ever been willing to do that?)
  24. canbelto

    canbelto Well-Known Member

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    I don't use debit either except to get money out of the ATM. I use my credit card, but pay off my balance in full each month so they don't make money off of me.
  25. nubka

    nubka Well-Known Member

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    I like to use my debit card, because it's easier for me to hang onto the receipts and keep track of how much money I'm spending (I deduct them from my check ledger every week.) I don't use on-line banking because I feel like it doesn't always give a totally acurate picture of how much money I really have at any given time. Also, computers can be testy, so I like knowing that I can pick up my checking register and always know what my balance is.

    If I used my credit card all month long, I would be in for a very nasty suprise everytime the bill came in...
  26. milanessa

    milanessa engaged to dupa

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    You do what's comfortable for you and that's good. But can't you keep the credit card receipts and achieve the same result? You can subtract them from your register just like a debit card receipt knowing that that money is spent. Doesn't really matter, like I said whatever is comfortable for you as long as you know you're losing a lot of benefit and protection.
  27. nubka

    nubka Well-Known Member

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    Yes, I thought about that as I was typing that post, lol! I guess I'm just a creature of habit and luuuuuv my debit card... :)
  28. Rex

    Rex Well-Known Member

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    I food shop around once or twice a month and I can easily put more than these puny amounts on my debit card! :mad:.

    Don't be gittin' all stoopid, Mr. Greedy Bank Executives; you will get stomped! :mad:
  29. skaternum

    skaternum Grooving!

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    Well, if you pay the bill at the end of the month, it's not really "debt" to me. Technically you have a credit card, but you're never going to carry a balance on it.
  30. Polymer Bob

    Polymer Bob New Member

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    I have a Dividend Mastercard. I only use my debit card for the ATM.
  31. danceronice

    danceronice Corgi Wrangler

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    Does anyone still use cards that DON'T have a Visa/MasterCard logo on them? Even my credit union debit/check card is a Visa. I can run it however I want.
  32. Spareoom

    Spareoom Well-Known Member

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    I don't know if this counts, but Target offers store credit and debit cards that aren't Visa.
  33. NancyNC

    NancyNC Well-Known Member

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    I use my debit card (which is also a Visa card) for 75% of my transactions. My bank (Wachovia, now part of Wells Fargo) has a fantastic fraud unit. They have contacted me a few times to make sure it was me making a purchase. My husband's card number was obtained and used in Tennessee while we were on vacation in Florida. Wachovia called him and when he confirmed that he wasn't in Tennessee using it, they canceled the card number. He wasn't liable for any of the fraud in Tennessee (it was a few hundred dollars).
  34. WindSpirit

    WindSpirit OmnipresentAdmeanistrator

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    For a regular savings account? If yes, I obviously belong to the wrong credit union.

    I get 0.35% And it always makes me laugh when in some months I get less than in previous ones even though the amount in my savings account is always increasing. I need to think about putting my money somewhere else.

    As for debit cards, I use mine all the time (always as credit, have never used it as a debit card, don't even remember my PIN) It would suck big time if I had to go back to checks or start carrying cash with me all the time.

    I heard leaving one's home is quite dangerous, too. :)

    I've never had a problem with a debit card. The difference in protection doesn't wary much from a credit card. Usually you have less time to notify them about a suspicious transaction/theft.

    I can't imagine paying for groceries, etc. with a credit card. I use my credit card online or for stuff like renting cars/paying for hotels/etc. But mostly online.
  35. KikiSashaFan

    KikiSashaFan Well-Known Member

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    I don't know anyone who has a combination credit/debit card. I use my debit card for everything, and I track it all through my online banking.
  36. Skittl1321

    Skittl1321 Well-Known Member

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    I only use a debit card to get a deal with my credit union. If there are a certain number of charges a month (12? At an average of $5 a charge, and you have to run it as credit, no PIN) then you get 5% (annual) interest up to $25,000 in the account. After that it's about the rate you mentioned.

    I use my debit card until my husband and I hit 12 transactions, and then we put it away. I think it has the same fraud protections as a credit card (it is VISA branded) but with the direct link to the account, I prefer to use a regular credit card (and then we get rewards points from them).

    But I use the debit card, because it's a lot of money to give up otherwise!


    I'd love to hear what credit unions offer 6-7.25% rates on normal accounts! It's hard to find CDs that even offer any sort of decent rate anymore.
  37. Karina1974

    Karina1974 Well-Known Member

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    I have one, through my (local) bank. It's a Mastercard. When I use it, I always select "credit" instead of 'debit" otherwise I will get charged with a $1.00 Point of Sale Purchase charge.
  38. Wiery

    Wiery Well-Known Member

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    I just use my credit card and pay the balance every month.
  39. genevieve

    genevieve drinky typo pbp, closet hugger Staff Member

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    Both for saving and checking accounts - but only on the first $500 (which is kind of an important detail). Amounts over that are the regular rate. So I deposit a portion of each paycheck into each of the 3 accounts that earn that high rate. When I get over $500 I either open a CD (not now since CD rates are so crappy), use the $$ to pay something off, or just leave it because even the regular interest rate is higher than what I get at Bank of America.
  40. numbers123

    numbers123 Well-Known Member

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    I prefer to use the credit card as the credit card protection is a wonderful thing to have. Several years ago when my husband and sons were on a sailing trip, I got a phone call about someone using the credit card in Key West. I veified that my sons used it to rent several movies (whichis where the charge was done) and let the card company know that it was a legit use. Apparently people will do small charges on a stolen card first before using it big time.

    My parents gave out some bank information/credit card information about 3 years ago. Immediately after hanging up, they realized that it was most likely a scam and called the card company. Within the time of the scammers getting numbers and parents calling the card company, probably 20 minutes, the card had been used in Little Rock. They were not responsible for the charges.

    We had a credit card stolen about 9 years ago. My husband downloads charges on a weekly basis so it was discovered rather quickly. The account was closed and a new card was issued. It was a headache for at least 18 months because we have some annual things, like journal subscription renewals, on an automatic renenwal and had to submit new card information. I can not imagine the headaches associated with a debit card cancelation and new card issued because of the monthly, quarterly and annual things that automatically are deducted.

    So for me, using a credit card and paying it off each month makes more sense. As I posted earlier - I use the debit card to withdraw cash. I haven't written a check for at least 2 years, probably more.