Saturday, February 02, 2008
I have mentioned this before. STOP USING DEBIT CARDS. The past couple weeks I've been eating out for restaurant week and I see which credit cards people are using. At Nougatine on Monday two people were using debit cards so I went off on my little rant.
DEBIT CARDS ARE SCARY. Debit cards (ATM cards with Visa/MC logos on them) can be used like credit cards, except they pull money from your checking account. So if you drop your debit card, someone can pick it up and use it. And when they charge a bunch of stuff to your account, YOUR RENT CHECK BOUNCES. So scary.
Why you shouldn't use debit cards:
1. Cash is instantly pulled from your accounts.
a. this means if you lose your card, someone can really mess with your finances
b. you aren't making interest on the money like you would with a credit card that gives you a month+ to pay
2. Disputing charges. You get a credit card statement each month where you can look over your charges and make sure things are ok before paying. If there's a bad charge, call the credit card and they will pull it INSTANTLY. Then you can deal with the paperwork or questioning to see what happened.
With a debit card, you have instantly lost that money from your account. They say you are protected BUT YOU ARE NOT. YOU MAY NOT GET YOUR MONEY BACK. I can quote sources here, but just google debit card fraudulent charges. Even if you want to believe your bank will help you, why take that risk? Why not see a statement before you pay?
A good credit card like Amex or Citibank will always side with you when it comes to a credit card dispute.
3. Credit cards offer protection on items you buy. This has always included protection against you being scammed by a merchant. But now it includes protection against accidental loss, theft, or damage to items. Some cards double warranties on items. I would never buy anything valuable on anything but my amex card. I broke my iPhone, and I got a new one for free with a single phone call.
4. With credit cards you get points. Use them for miles, cash back, gift cards, whatever. Anytime you use a card with a visa/mc/amex logo, that card company gets 2-3% from the merchant. Companies like Amex are giving you part of this back through their reward programs (and the other protection they offer). Using your debit card means your bank is getting this extra money and giving you nothing in return (and even less protection).
STOP USING DEBIT CARDS. Get a couple free credit cards and use them. Be safe. You can call your bank and get ATM cards that are not debit cards. They only work with pin numbers. That's what I have from BofA. I have never had a debit card and I never ever will.
DEBIT CARDS ARE SCARY. Debit cards (ATM cards with Visa/MC logos on them) can be used like credit cards, except they pull money from your checking account. So if you drop your debit card, someone can pick it up and use it. And when they charge a bunch of stuff to your account, YOUR RENT CHECK BOUNCES. So scary.
Why you shouldn't use debit cards:
1. Cash is instantly pulled from your accounts.
a. this means if you lose your card, someone can really mess with your finances
b. you aren't making interest on the money like you would with a credit card that gives you a month+ to pay
2. Disputing charges. You get a credit card statement each month where you can look over your charges and make sure things are ok before paying. If there's a bad charge, call the credit card and they will pull it INSTANTLY. Then you can deal with the paperwork or questioning to see what happened.
With a debit card, you have instantly lost that money from your account. They say you are protected BUT YOU ARE NOT. YOU MAY NOT GET YOUR MONEY BACK. I can quote sources here, but just google debit card fraudulent charges. Even if you want to believe your bank will help you, why take that risk? Why not see a statement before you pay?
A good credit card like Amex or Citibank will always side with you when it comes to a credit card dispute.
3. Credit cards offer protection on items you buy. This has always included protection against you being scammed by a merchant. But now it includes protection against accidental loss, theft, or damage to items. Some cards double warranties on items. I would never buy anything valuable on anything but my amex card. I broke my iPhone, and I got a new one for free with a single phone call.
4. With credit cards you get points. Use them for miles, cash back, gift cards, whatever. Anytime you use a card with a visa/mc/amex logo, that card company gets 2-3% from the merchant. Companies like Amex are giving you part of this back through their reward programs (and the other protection they offer). Using your debit card means your bank is getting this extra money and giving you nothing in return (and even less protection).
STOP USING DEBIT CARDS. Get a couple free credit cards and use them. Be safe. You can call your bank and get ATM cards that are not debit cards. They only work with pin numbers. That's what I have from BofA. I have never had a debit card and I never ever will.