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With a debit card, the money comes out of your bank account before you walk away from the register. With a credit card you write one check at the end if the month.
I lost my debit cards a couple times and had no problem cancelling and getting a new one sent in a couple days at most 7. But I guess I caught it soon enough because the money was still on it... so don't know how long it would've took to get it back.
But you can just link a free savings account or another (free) checking account to your debit card you use and just keep most of your money in that account. That's what I do. You can't do that with a credit card. Thousands and thousands of dollars in one place on one card. Nope... don't like that. I never have to worry about anybody stealing a lot of money off of my debit card... or losing it. I have a savings account too where I kept most of my money (all of it) and I just go online whenever I want and transfer whatever amount I need from my savings straight into my checking account linked with my debit card. I make sure I never keep more than a couple hundred on my debit card just incase it gets lost or stolen. Only like 1% of my total life savings. You're stuck with your credit card... you can't do that. Just gotta hope it doesn't get stolen.... then go through whatever you gotta go through to get it back.
Doing it that way makes credit cards less secure.
Less secure for the bank. Not less secure for me, as it's not my money the thieves have stolen, but the bank's. At most I'm only liable for $50.
But I agree with your approach on how to keep debit cards reasonably secure. I just don't think that the average person thinks to do that. And if they keep a large amount of money in an account linked to a debit card and that card gets compromised by someone who goes off on a shopping spree, they may find themselves learning a very painful lesson. Knowing you'll get your money back eventually is scant consolation when you need that money NOW to pay your bills.
Because it is earning 0.05% and I see no reason to care.
That's the point. If you were in a situation where you needed to pay work expenses out-of-pocket and wait for reimbursement, you would have to keep more money available in a cash account earning no interest rather than investing it in something less liquid that offers a better return.
If it's something you do a couple of times a year for a few bucks it's no big deal, but some people who travel frequently for work can run up thousands of dollars' worth of business expenses a month. Those folks are much better off investing that money and using a credit card for their expenses rather than simply cycling the cash through their checking accounts every month.
That's the point. If you were in a situation where you needed to pay work expenses out-of-pocket and wait for reimbursement, you would have to keep more money available in a cash account earning no interest rather than investing it in something less liquid that offers a better return.
If it's something you do a couple of times a year for a few bucks it's no big deal, but some people who travel frequently for work can run up thousands of dollars' worth of business expenses a month. Those folks are much better off investing that money and using a credit card for their expenses rather than simply cycling the cash through their checking accounts every month.
Precisely. Why loan my money to my employer when I don't have to?
Chase does 5% cash back for purchases from Amazon.com Oct-Dec
Also consider the issue of temporary authorizations (aka "holds") , these are extra invisible charges, over and above the amount you expect to spend, that temporarily lock part of your credit or bank balance.
Renting a hotel room or a car with any sort of card usually puts a "hold" on your account above the actual amount of your total reservation (Some hotels tack on a hold of $50-$200 per day!). With either card, holds can cause transactions to fail, but on a debit card this might mean bounced checks and the associated fees, etc.
What happens if you miss a payment, even by just one day? Banks offer you these things in the hope that you miss payment, that you keep the card after the initial 0%APR and then hit the lowest APR available of 10-20+% and miss payments. Credit cards are risk, debit cards are not. Security breaches can occur with or without a debit card used, just look at Home Depot.
My main credit card is on an automatic payment plan so if I missed payments by just one day it is either the bank or the credit card company's fault.
There is usually tools or a method to allow you to manage your credit or money no matter which system of payment you use, unless it is cash only I suppose. I still use my debit card for some places but less and less
Also consider the issue of temporary authorizations (aka "holds") , these are extra invisible charges, over and above the amount you expect to spend, that temporarily lock part of your credit or bank balance.
Renting a hotel room or a car with any sort of card usually puts a "hold" on your account above the actual amount of your total reservation (Some hotels tack on a hold of $50-$200 per day!). With either card, holds can cause transactions to fail, but on a debit card this might mean bounced checks and the associated fees, etc.
I'd never run with such a low balance as to have any danger of this happening...
I'd never run with such a low balance as to have any danger of this happening...
I put 8k on my cc last week for work and it would be very rare that I have that much in my checking account. There is a lot more flexibility outside of temp authorizations and holds. You are aware of this but would rather argue just to do it
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Precisely. Why loan my money to my employer when I don't have to?
Chase does 5% cash back for purchases from Amazon.com Oct-Dec
