Re: Banks/debit card signatures as Credit Cards wo... - Page 9

WenGirl42 · ‎07-05-2012

@Mominohio wrote:
I think I heard some rumblings about this, maybe from my husband, but I don't have a debit card, and don't want one.

I'm pretty much down to paying cash, or using a CC if I'm out and about, and right now, 99% is done in cash, with my CC always in my wallet for emergencies or unforeseen circumstances.

Not being snarky, but what was the advantage/lure of using a debit card as credit? I really don't know, as I haven't done it.

There are a couple of ways it could be advantageous to use your debit card as a "credit" transaction.

Not everyone has or wants credit cards. Using your debit card is a way to pay only with the "cash" you have, without having to make trips to the bank to get the cash and carry it around with you. It's the convenience of using a card (and getting rewards) without extending yourself at all, because you can only pay with what's in the bank.

Using your debit card as debit means having to enter your PIN, usually right out in the open in the store, where anyone who wants to can see the numbers you're entering. You don't have to enter your PIN when you use your debit card as credit.

And as @SahmIam mentioned, she gets charged fees to use her debit card as a debit card for merchant transactions (but not if she uses it as a credit card), so if she doesn't want to use a credit card and she doesn't want to carry around cash, using her debit card as credit makes the most sense.

millieshops · ‎03-09-2010

@SahmIamI have no debit cards at all because when they first came about, they had far fewer protections than they do now and no banks were giving bonuses for using them. Bonuses were even new to most credit cards and were much less than now. I don't believe I've ever had those credits add up to $1000, but I have not recently checked in with my banks to see what they're offering for using their debit cards. I'll look

SeaMaiden · ‎03-10-2010

@Kachina624 wrote:

@SeaMaiden wrote:
After having fraud done with our debit card last month..... we started using a credit card instead of using the debit card for everything we buy. No more debit card unless we go the the bank to make a withdrawal. It works out the same. I pay the credit card off at the end of the month... same money spent PLUS I AM GETTING POINTS for using the card that I trade in for free gift cards!

I recomend that everyone start doing this and stop using your debit card. To much risk of losing all your money. With the credit card it is THEIR MONEY.
@SeaMaiden. My account is with Bank of America and they treat debit cards exactly like credit cards. They cover any type of fraudulent activity. I've had a couple of instances of this and they immediately refunded my money.

@Kachina624 Thank you for sharing. Yes, we also are with BOA. When we had the debit card compromised, they immediately refunded the money with a temporary credit while they " investigate the incidents. There were two. This could take up to a month. Also had to get new cards...new pins....Bla Bla Bla. BOA was really helpful and everything.

But now I do not want to risk that anyone could go to an ATM and withdraw a bunch of MY MONEY on my debit card.....so a I will just use my BOA visa....get points$$$$ and pay the bill in full at months end. Same difference but no one will be able to commit fraud using my Debit card ever again or have access to MY MONEY.

ChillyTulip · ‎03-11-2010

I almost never use my bank card except to get cash. I use my credit card for everything. If someone steals my credit card, one call to my credit card company and it's taken care of. On the other hand, if someone steals your debit card it's like giving them free reign to YOUR money. If this should happen while you'ere on vacation or on a weekend or holiday it is a nightmare because your cash is gone. Not too mention any bills that get paid from that account may go unpaid and you'll have to deal with that mess as well.

I haven't used my debit card in a store ever since they got rid of mandatory pins and instead let anyone and their uncle steal my card, sign, and walk away. At least back in the day when they were all pin protected you had a fighting chance. I would love to see them do away with the "credit" feature and go striclty back to pin protected debit. That's what Target does now with their credit card after a very expensive lesson on their part!

Besides, my credit card gives me amazing awards and I have much more consumer protection allotted to me than I would if I paid with a debit card (essentially a cash purchase).

Mominohio · ‎08-08-2010

@WenGirl42 wrote:
@Mominohio wrote:
I think I heard some rumblings about this, maybe from my husband, but I don't have a debit card, and don't want one.

I'm pretty much down to paying cash, or using a CC if I'm out and about, and right now, 99% is done in cash, with my CC always in my wallet for emergencies or unforeseen circumstances.

Not being snarky, but what was the advantage/lure of using a debit card as credit? I really don't know, as I haven't done it.
There are a couple of ways it could be advantageous to use your debit card as a "credit" transaction.

Not everyone has or wants credit cards. Using your debit card is a way to pay only with the "cash" you have, without having to make trips to the bank to get the cash and carry it around with you. It's the convenience of using a card (and getting rewards) without extending yourself at all, because you can only pay with what's in the bank.

Using your debit card as debit means having to enter your PIN, usually right out in the open in the store, where anyone who wants to can see the numbers you're entering. You don't have to enter your PIN when you use your debit card as credit.

And as @SahmIam mentioned, she gets charged fees to use her debit card as a debit card for merchant transactions (but not if she uses it as a credit card), so if she doesn't want to use a credit card and she doesn't want to carry around cash, using her debit card as credit makes the most sense.

@WenGirl42

Thank you so much for that answer. It does indeed clear up some things, and give me some information I didn't know or consider in the past!

Mominohio · ‎08-08-2010

@ChillyTulip wrote:
I almost never use my bank card except to get cash. I use my credit card for everything. If someone steals my credit card, one call to my credit card company and it's taken care of. On the other hand, if someone steals your debit card it's like giving them free reign to YOUR money. If this should happen while you'ere on vacation or on a weekend or holiday it is a nightmare because your cash is gone. Not too mention any bills that get paid from that account may go unpaid and you'll have to deal with that mess as well.

I haven't used my debit card in a store ever since they got rid of mandatory pins and instead let anyone and their uncle steal my card, sign, and walk away. At least back in the day when they were all pin protected you had a fighting chance. I would love to see them do away with the "credit" feature and go striclty back to pin protected debit. That's what Target does now with their credit card after a very expensive lesson on their part!

Besides, my credit card gives me amazing awards and I have much more consumer protection allotted to me than I would if I paid with a debit card (essentially a cash purchase).

@ChillyTulip

I've had people say that now, the bank settles a dispute/theft of debit just like and as fast as they do credit.

I don't have a debit and don't want one, but I still can't see how, if you have a debit, and it is compromised to the point someone steals your money, it wouldn't be a huge mess. If, in the time it takes to notify the bank and get it fixed, other electronic or paper check debits roll in, and there isn't sufficient funds (because they were stolen), there will be charges incurred from all those, and late fees if your payment doesn't clear etc.

Can anyone tell me if this now is somehow no longer a concern when just using a debit card in general and it get's compromised?

Kachina624 · ‎03-10-2010

@ChillyTulip wrote:
I almost never use my bank card except to get cash. I use my credit card for everything. If someone steals my credit card, one call to my credit card company and it's taken care of. On the other hand, if someone steals your debit card it's like giving them free reign to YOUR money. If this should happen while you'ere on vacation or on a weekend or holiday it is a nightmare because your cash is gone. Not too mention any bills that get paid from that account may go unpaid and you'll have to deal with that mess as well.

I haven't used my debit card in a store ever since they got rid of mandatory pins and instead let anyone and their uncle steal my card, sign, and walk away. At least back in the day when they were all pin protected you had a fighting chance. I would love to see them do away with the "credit" feature and go striclty back to pin protected debit. That's what Target does now with their credit card after a very expensive lesson on their part!

Besides, my credit card gives me amazing awards and I have much more consumer protection allotted to me than I would if I paid with a debit card (essentially a cash purchase).

@ChillyTulip. You obviously didn't read any of the many posts on this thread where debit card users relate having fund immediately replaced when they were defrauded. Your statement is untrue; your money is not gone.

New Mexico☀️Land Of Enchantment

Sadiesadie · ‎08-05-2011

@SahmIam: Thank you for the reply. I wonder why we incur no fees. My husband uses the debit for small items and will get cash back sometimes. I can get cash back from various vendors and still no fee.

If it is a state thing I’m surprised Arizona doesn’t institute this as it would be something they would do.

NYC Susan · ‎03-13-2010

@Kachina624 wrote:
@ChillyTulip wrote:
I almost never use my bank card except to get cash. I use my credit card for everything. If someone steals my credit card, one call to my credit card company and it's taken care of. On the other hand, if someone steals your debit card it's like giving them free reign to YOUR money. If this should happen while you'ere on vacation or on a weekend or holiday it is a nightmare because your cash is gone. Not too mention any bills that get paid from that account may go unpaid and you'll have to deal with that mess as well.

I haven't used my debit card in a store ever since they got rid of mandatory pins and instead let anyone and their uncle steal my card, sign, and walk away. At least back in the day when they were all pin protected you had a fighting chance. I would love to see them do away with the "credit" feature and go striclty back to pin protected debit. That's what Target does now with their credit card after a very expensive lesson on their part!

Besides, my credit card gives me amazing awards and I have much more consumer protection allotted to me than I would if I paid with a debit card (essentially a cash purchase).
@ChillyTulip. You obviously didn't read any of the many posts on this thread where debit card users relate having fund immediately replaced when they were defrauded. Your statement is untrue; your money is not gone.

Exactly. My bank protects my money in the same way whether it's debit or credit. And other posters have said the same.

Lipstickdiva · ‎03-10-2010

Back in the day when debit cards first came out, some banks were charging a small fee if you used them as a debit card instead of a credit card. My bank was never one that charged a fee regardless of how you used the card. 99% of the time I used my card as a credit card, by-passing entering the PIN, unless I wanted cash back.

I used my debit card 3 times yesterday at various stores. At all 3 stores, when I inserted my chipped card into the machine, the initial screen prompted me to enter my PIN. All I had to do was press either the cancel button, the green button or the yellow button, depending on the store, and it then went through as a credit, no PIN required.

I have to wonder if this isn't more of a store issue than a banking regulation issue.