[macgeek]

Originally Posted by yellowsnow

Here's one not mentioned yet. Rebel discounts 5c per gallon if you swipe your Boyd Gaming card!

A nickel is a nickel!

Not any more, they ended the Promotion

Jonathan

[LV2ndHome]

Originally Posted by ElleTea

I do remember this from years past, though, it seems like there was a price difference years ago between cash and credit (like 20+ years ago). I assume this was to offset the fees charged by the cc companies. It seems a bit out of date to me now, in the era of debit cards. Who carries cash anymore? (I rarely do!)

The merchant pays processing fees on debit cards just like they do on credit cards. A growing problem is card issuers keep offering better rewards programs to users, but then charge the merchant more in processing fees on those cards, or in other words, the merchants are largely being forced to absorb the rewards you receive.

Another problem is the merchant is the one that takes it on the chin when there is card fraud. If a merchant accepts a stolen card for example, he is out the merchandise, the card issuer forces a full refund of the charge, plus charges the merchant a huge "charge back" service fee, typically around $35. I don't believe the card issuers really want to fight card fraud... they make a lot of money off of fraud in fees at the merchant's expense.

On the other hand, there is no processing fee to the merchant on cash, and there is practically no risk of fraud costs surfacing after the sale. It seems to me there have recently been more and more merchants offering discounts for cash, and I look for that trend to continue because of all the above.

Also there are several disadvantages to using a debit card compared to using cash even besides the discounts for cash often offered by merchants. One disadvantage is in many cases your bank will place funds on hold for a "pending charge" but then be slow to release those funds. For example, say you check into a hotel and give a debit card as security for any incidentals. Your card will be authorized for say $50 or whatever the hotel requires and your bank immediately places a hold on that sum. You later check out after having incurred no charges for incidentals and the hotel cancels that charge authorization. But your bank will not release their hold on those funds for typically at least 2 additional business days after the hotel cancels the authorization. During this time, you do not have the use of this $50, and you will even incur insufficient funds service charges if that $50 is needed to cover some other charge(s) you made within that 2 business day or longer waiting period.

Another disadvantage of debit cards is that they usually have a daily limit as to how much you can withdraw, typically around $2k to $3k. So even if you have a million dollars in your account, you can't access but around $2500 of it per day by a debit card.

Yet another disadvantage of debit cards is that they aren't accepted everywhere. If you want to buy something from an individual for example, most likely he won't be able to accept a debit card.

For all of these reasons, I still carry a lot of cash, and I know a lot of other people that do as well.

[clutchcargo777]

There are costs associated with accepting cash. Somebodies got to count it and take it to the bank. Then there's employee theft, the risk of accepting counterfeit currency, getting robbed or just plain losing it.

I do agree with most of your debit card caveats though. Until more merchants start playing with discounts or ignore VISA/Mastercard/Amex agreements and try to charge a surcharge for credit cards, using a rewards CC and paying it off every month is your best payment method.

[MadManofBethesda]

Originally Posted by clutchcargo777

....using a rewards CC and paying it off every month is your best payment method.

Couldn't agree more. That's how I've operated ever since such programs began; in fact, I used to take it to an extreme. I used to sign up for an airline-affiliated VISA or MC, get the 25k or 50k bonus miles for doing so (enough for one or two free tickets), then cancel the card sometime during that first year before the annual charge kicked in, and immediately sign up for a different airline's card. I'm not quite that dedicated these days.

[clutchcargo777]

Originally Posted by MadManofBethesda

Couldn't agree more. That's how I've operated ever since such programs began; in fact, I used to take it to an extreme. I used to sign up for an airline-affiliated VISA or MC, get the 25k or 50k bonus miles for doing so (enough for one or two free tickets), then cancel the card sometime during that first year before the annual charge kicked in, and immediately sign up for a different airline's card. I'm not quite that dedicated these days.

I'm still doing that to some degree. Between regular cashback and sign-up bonus's I average about $3,000 per year tax free.

[ElleTea]

A $3k limit on spending per day with debit has NEVER been an issue for me!

I don't feel safe carrying cash. I can also track my spending much better with debit. My bank will even produce a report for me telling me where my money goes each month.

Merchants pay a processing fee, I know. (I was self employed for a bit) but that's just the cost of doing business just like paying the bank a fee to process cash, and that fee is very common these days.

[clutchcargo777]

Originally Posted by ElleTea

A $3k limit on spending per day with debit has NEVER been an issue for me!

I don't feel safe carrying cash. I can also track my spending much better with debit. My bank will even produce a report for me telling me where my money goes each month.

Merchants pay a processing fee, I know. (I was self employed for a bit) but that's just the cost of doing business just like paying the bank a fee to process cash, and that fee is very common these days.

Debit cards have dangers. The simplest way I can explain is each time you hand your debit card to someone you are giving them all the info they need to take as much of YOUR money as they want. When you hand a credit card to someone you give them all the info they need to take as much of the ISSUING BANKS money as they want. See the difference?

Sure, both have built in protection (credit card protection is better) but the bottom line is, which do you think will get returned faster, the banks money or your money?

[ElleTea]

Originally Posted by clutchcargo777

Debit cards have dangers. The simplest way I can explain is each time you hand your debit card to someone you are giving them all the info they need to take as much of YOUR money as they want. When you hand a credit card to someone you give them all the info they need to take as much of the ISSUING BANKS money as they want. See the difference?

Sure, both have built in protection (credit card protection is better) but the bottom line is, which do you think will get returned faster, the banks money or your money?

I had someone make fraudulent charges on my debit card last summer. My bank returned the funds immediately, then began their investigation. They even reversed an overdraft fee I incurred due to the false charges.

[clutchcargo777]

Originally Posted by ElleTea

I had someone make fraudulent charges on my debit card last summer. My bank returned the funds immediately, then began their investigation. They even reversed an overdraft fee I incurred due to the false charges.

I dont have credit cards.

It really depends on the banks policy when it comes to debit cards. I would say you have a good bank or that you lucked out. I've heard and read MANY stories that did not end as well. One bit of advice is ALWAYS choose signature over PIN. Many banks treat a PIN transaction as proof that you made the charge. Signature invokes more protection.

[MadManofBethesda]

Originally Posted by ElleTea

I don't feel safe carrying cash.

You can be robbed while carrying $5 just as easily as when you're carrying $500. The amount of cash you carry won't impact your safety. In fact, if you are jacked and you're carrying your debit card in lieu of any cash, the assailant may just take you to an atm and force you to withdraw the maximum from your account. It wouldn't be the first time that has happened. [/quote]