Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This part of the article reiterates what I wrote earlier in this thread about why I absolutely refuse to ever use my bank ATM card as a debit card:
Quote:
The real difference between a debit card and a credit card when it comes to fraud is in how you get your money back. When a fraudulent transaction occurs on your credit card, you have lost no money. You can report the fraud, get a credit on your statement, and the issue will never affect your bank account.
With a debit card, your bank account balance is affected from the moment the fraudulent transaction takes place. If the transactions are significant, you could experience a domino effect of financial headaches. Fraudulent charges can tie up funds so that legitimate charges are declined or cause overdrafts.
As I wrote earlier, a cloned credit card is one phone call to the bank with their web interface up so I can tell them which recent transactions are OK and which are fraudulent. The new card shows up FEDEX 2 days later. With an ATM card, it could be a huge PITA with all kinds of bounced checks or failed auto-payments that all have fees associated with them. I don't use my bank ATM card anywhere but in a real bank ATM machine. Unless it's urgent or I'm traveling internationally and need foreign currency, I try to always use an ATM from my own bank's ATM machines.
Something the feds cracked down on with Dodd-Frank IIRC. Now you have to "opt in" for overdraft protection like that, otherwise the bank will simply decline/return IIRC.
My bank decided to start charging $50/year for my $5K overdraft line of credit when those regulations kicked in. That was a "What's this $50 charge?" phone call and a bit of a rant about declining service when I told them to ditch the overdraft protection. I just have to pay a bit more attention to keeping my checking account balanced.
But yeah, best not to use a debit card anywhere really. Far less protection than a credit card and fraud aside an oops could leave you with an empty checking account for weeks while they take their time to fix it.
Yes, I was glad to be reminded of this in another thread. I was using my debt card before I got a rewards card but was carrying around my debit as back-up. Now I carry a second cc and a very small amount of cash.
My bank decided to start charging $50/year for my $5K overdraft line of credit when those regulations kicked in. That was a "What's this $50 charge?" phone call and a bit of a rant about declining service when I told them to ditch the overdraft protection. I just have to pay a bit more attention to keeping my checking account balanced.
It is becoming far more difficult today to get the "over draft" line of credit protection many of us remember of old (1980's 1990's, etc...).
Many banks today either treat such applications as one for a personal loan or some such which requires a hard credit report hit. Some banks will charge you an overdraft fee *and* one for going below any monthly minimum balance requirement before paying an overdraft from such "protection".
Yes, as you say often just better to manage one's accounts properly and avoid the whole overdraft mess.
Yes, I was glad to be reminded of this in another thread. I was using my debt card before I got a rewards card but was carrying around my debit as back-up. Now I carry a second cc and a very small amount of cash.
Exactly!
Use my Amex for things that would otherwise be a "cash" purchase instead of debit card. At least am getting something (points) for my troubles. At end of month Amex sends a bill and it is paid.
Have seen and or heard too many horror stories about someone using their debit card an it turns out the thing had a skimmer or whatever. You don't know what hell is until your account has been drained and you've got to fight with your bank to get that money back.
Lots of people are like Dave Ramsey and pathologically incapable of responsibly using debt. Since the choice is either bankruptcy or cutting up their credit cards, they've cut up their credit cards. It might seem weird to you or me, but look at it from their perspective where the fact that it is never possible to use a credit card without succumbing to uncontrollable spending and bankruptcy and it makes sense in a way.
We are quite capable of responsible debt use which is the reason we have no debt and amazingly enough we also have no trouble renting vehicles, hotels, tickets, etc with a debit card.
Your assumption that everyone who is debt free succumbs to uncontrollable spending and bankruptcy is wrong on many levels.
For many of us it is a conscious decision to pay cash for everything so we actually own the item instead of renting it from the bank, credit card company, department store or mortgage company.
We have monthly payments for our chosen necessities, no interest being paid to anyone and all titles and deeds are clear.
It really depends upon the agency. I've had some that will take a debit card, but I am a known customer, who is a frequent renter from the agency. That said, I never use a debit card, though did once in an emergency when my wallet was missing and I had to have a new CC issued, since my debit card was securely locked in the hotel safe, not in my wallet. My wallet was not stolen, rather it fell out in a colleague's vehicle, something he didn't tell me until the next day, after I had already hit the panic button on canceling and reissuing CCs.
When I brought the car back, I explained the issue, and opted to pay with the debit card to avoid any delay in processing though it should not have been a problem to use the old credit card as the charge was initiated before the cancellation and was a bona fide transaction. The interesting thing is when I went to rent again, I was asked if I wanted to use the debit card or the credit card, since they had captured both, and there was no issue giving me a Mercedes rental car with only a debit card, but I want rentals on a specific CC both for points and for the enhanced CDW/LDW offered, with few exceptions such as Ireland and Israel.
Even when you bring back a rental without a situation as I had with CCs being reissued, the customer service agents ask if you want to keep the balance on the card you used at the outset of the rental, so there would be no problem to switch said balance to a debit card, should you wish to do so. Non-airport Enterprise locations are the absolute worst, though some of their airport locations are also aggravating, which is why I prefer to deal with National and Alamo when dealing with Enterprise Holdings. I do not know if it's the Enterprise customer profile, but the level of inquiry and manner in which you get the car from them, after having to go over it in detail, is a waste of time. I could see a debit card being a hassle at such a rental counter.
__________________
All the world's a stage, and all the men and women merely players: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.
~William Shakespeare (As You Like It Act II, Scene VII)
Use my Amex for things that would otherwise be a "cash" purchase instead of debit card. At least am getting something (points) for my troubles. At end of month Amex sends a bill and it is paid.
Have seen and or heard too many horror stories about someone using their debit card an it turns out the thing had a skimmer or whatever. You don't know what hell is until your account has been drained and you've got to fight with your bank to get that money back.
My bank actually restores it immediately. It's happened. They would have taken it back away if I didn't follow their procedures, but they instantly gave it back on a temp basis, so with them I am not as worried as other people, it's just a good practice.
Even if my bank keeps this policy there are other protections afforded with credit cards for purchases. And it doesn't cause an issue with my bank balance if a hold is placed or whatever.
Regarding overdraft: people talking about problems with this, do you not have savings with the same back to serve as overdraft protection? I think mine charges me $15 if they have to overdraft from my savings, but that hasn't happened in a long time. And they are nice. As long as you're not doing something (anything) on a regular basis they will reverse any fees as a courtesy.
It really depends upon the agency. I've had some that will take a debit card, but I am a known customer, who is a frequent renter from the agency. That said, I never use a debit card, though did once in an emergency when my wallet was missing and I had to have a new CC issued, since my debit card was securely locked in the hotel safe, not in my wallet. My wallet was not stolen, rather it fell out in a colleague's vehicle, something he didn't tell me until the next day, after I had already hit the panic button on canceling and reissuing CCs.
When I brought the car back, I explained the issue, and opted to pay with the debit card to avoid any delay in processing though it should not have been a problem to use the old credit card as the charge was initiated before the cancellation and was a bona fide transaction. The interesting thing is when I went to rent again, I was asked if I wanted to use the debit card or the credit card, since they had captured both, and there was no issue giving me a Mercedes rental car with only a debit card, but I want rentals on a specific CC both for points and for the enhanced CDW/LDW offered, with few exceptions such as Ireland and Israel.
Even when you bring back a rental without a situation as I had with CCs being reissued, the customer service agents ask if you want to keep the balance on the card you used at the outset of the rental, so there would be no problem to switch said balance to a debit card, should you wish to do so. Non-airport Enterprise locations are the absolute worst, though some of their airport locations are also aggravating, which is why I prefer to deal with National and Alamo when dealing with Enterprise Holdings. I do not know if it's the Enterprise customer profile, but the level of inquiry and manner in which you get the car from them, after having to go over it in detail, is a waste of time. I could see a debit card being a hassle at such a rental counter.
Rent from National/Enterprise all the time, and to best of my knowledge you cannot take out a vehicle with a debit card except under certain circumstances. Paying upon return is another matter.
However people should know that reserving a vehicle on one CC then paying final charges on another or even a debit card in most all instances invalidates the CC "rental insurance". If that is the coverage one was intending to use in case of a damage or liability claim, then you could be out of luck unless the entire rental from start to finish is on the same card.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
