Using Debt card as a Credit Card at pruchase!??? (insurance, bank, work)

[rlrl]

they may have the right to get a pending hold on your card for an amount that is more then the actual purchase amount, and then when the actual receipt amount is posted then the hold becomes adjusted to the actual price you paid

This has happened to me at hotels and for other services i charged with my debit card and the amount is always adjusted down to what was actually charged. I never had a problem with that

[shadowwalker]

Thanks for all the information and help.

[IonRedline08]

It is not illegal.

Also, I am not sure how a thread about a company putting a hold on your debit card came to be about people not knowing how to manage their finances because they use a debit card.

Do what works for you, and leave it at that

[deerislesmile]

Originally Posted by Dd714

I suspect that goes back to one of the 2 reasons you need to - because of lack of discipline or irresponsible use of credit cards to incur debt . If you have that personal financial problem - use a debit card. If your Ramsey source says anything different, then post the source and we can take a look at and comment. I suspect it doesn't.

A financial advisor will not recommend carrying a high interest revolving credit balance, period. That's obvious. But that is an issue that goes beyond responsible credit card vs debit card usage.

The Basics of Your Debit Card

Think a credit card is safer to use than a debit card? Most people do. They convince themselves that credit cards carry a better track record, and you're less likely to have your money stolen from you when you use a credit card. Sadly, those people are wrong.

[Dd714]

Deerislesmile -
Yes I saw that Ramsey article back when we had this original discussion and it agrees with the crux that I was trying to explain. Ramsey is a big proponent of carrying no debt and believes that the temptation of credit card is just to much. That comes from his history of debt problems and his pledge to "never again take debt", so his dislike of credit cards is personal and biased.

But I would agree also not to use credit cards for revolving credit cards, but simply as debit cards with you chosing to pay the balance yourself a month later. Nothing in his article disputes what I was trying to explain. On top of that, he gives about 5 "tips" for debit card safety that are kinda scary: check you bank statement, check your credit report, know your pin, etc. Yes we all do that but I don't expect to see unexplained debits on my bank statement with a credit card, we still have to check the credit card statement but, big difference, the money is still in my bank account.

[Asheville Native]

Yep, that is the way Debit Cards work. It really helps if the card holder understands how this works before using them.

Because they would only place a hold on $50 when you inserted the card, pumps would shut off at $50 when gas was going for $4/gal last summer, and fill-ups were taking 60 - 70 bucks.

[wheelsup]

I had an instance several years ago where I had money taken out of my checking account via my debit card. Because I keep the bare minimum in my checking account (practically nothing for an interest rate) it impacted me several times that day before I knew it (it was a large sum, over $1000 taken out). $35 here and there for overdrafts, suddenly that $10 burger cost $45.

I personally like to use credit because if it gets stolen I dispute it and am not responsible for the charges above $50 (? is that right, not sure, maybe that's for your debit account) but I can't overdraft on my credit card and if I do it's not me doing it...I'll take the recourse of credit over losing actual money out of my bank account any day. Why not? Credit cards are free to use as long as you pay off the balance any way.

If you can't physically stop yourself from buying crap then yeah, I agree with sticking to cash/debit, but for the 99% of us out there that aren't shop-a-holics credit works great IMO.

[rtjr]

Originally Posted by shadowwalker

Well I just got off the phone with a bookeeper at a Convience/Gas station,again. Again on our bank site they have overcharged my debt card and recharged my debt card. This has happened several time since this summer. I don't agree with when I fill with gas. They first charge $50.00 or $75.00 right off. No matter how much or little gas I get. Then a few hours or days they readjust my card to the origional purchase. BUT, for that time I have the money taken out of my checking account. Thankfully I don't run my account anywhere near the bottom. So this doesn't affect it. But when they don't readjust the origional 50 or 75 that is when I have to call to make them do it. Is this rampant or just here in wyoming? I now have to keep my reciepts for weeks in case I have to show it to some bookeeper at the store. And yes I have to do this from time to time. So far I have always got this fixed but hell, it sure is a problem. And now we have to check our bank accounts online about every other day if not every day. I don't get gas at places that do this twice to me.
I feel for the people that live from paycheck to paycheck and have to pay overcharges on stuff because of things like this,and, they have the money in the bank.Somewhere.
Now,my question. I posed this to a buddy he said to run the debt card as a credit card and they will charge only the amount I spent. No funny movement of money or hassel. Is this possible?

Most gas stations give you the option of paying with either debit or credit at the pump. If you select debit, it will only debit your account for the amount of the purchase plus in some cases, you can receive a discount as this is considered a "cash" purchase. If you select credit, it will treat your debit card as credit and will authorize a certain amount as a hold.

[sonarrat]

I will use my debit card if I'm buying gas at Costco or at other local stores I trust.. if I'm in an unfamiliar area, I'll just pay cash. It's not worth trying to deal with an uncooperative bank if they screw up.

[nightbird47]

I just recieved my new debit card. Master card has extended their 0 dollar fraud protection to debit mastercard. I still won't use it on sites I've never heard of, but then they are the only ones I've ever had a problem with.

I know a number of people who do not have credit cards and who do not want them. I would suspect that as people look at the debut they've added up on their credit cards and cease to use them debit cards will become an even larger choice for making payments. The solution here lies in better protection of fraud rather than telling those who for reasons only known by them know its not a good idea.

One friend has a debit card arrainged through one of the check cashing outlets. His check is automatically deposited and the card has a credit chip. The difference is if a charge comes through larger than the balance it is refused. They cannot pay unless there is sufficent funds for the whole amount. And he is notified immediately. A long time ago I had two accounts. One was for the debit card and one a checking account without one. As things were to be spent money was transfered. The balance was never high enough to lose much. The only problem in this case was an incorrect debit on the part of the bank which took monts to resolve and afterwards accounts were closed.

I have lost cash more often than anything else. I use my card at stores and online in reputable places and have never had a problem with them. I learned my lesson with one of those things you order off tv however and would send any of them a money order.