What am I missing here...? Why would anyone ever use a debit card with a pin#?

[Reason]

This is what I do...

I have a credit card. This credit card has no fee's. This credit card gives me a small % back at the end of the year in the form of a check.

I use this credit card for most of my purchases, if my card # is stolen & used, I am not liable, the merchant who failed to check ID is liable. When a merchant makes a mistake when charging me (ie: glitch causes a double charge, I click a button & the charge is fixed without any problems whatsoever). I have this credit card setup to automatically pay itself in full every month. This is also building my credit should I ever make the decision to get a home loan.

Am I missing something here?

[Kludge]

Debit card's tied to checking account. >4% APR. Debit cards have lower fees for merchants. No monthly bill, and no risk of absurd interest rates if I don't pay on the right date in the exact amount, but that's a moot point if you use auto-payment like you.

I rarely use the debit card, but it does make my checking account more accessible. If I need cash for something, I can simply drive up to the ATM, take up to $300 out near-instantly, and be on my way.

[specsaregood]

Debit cards have lower fees for merchants.

Fees which get passed right on to the customer. That's right, the more people like you (OP) that use credit cards when you have the debit option, the higher the prices go.

[newbitech]

credit cards require credit. What you are missing is that many purchases require a visa or mastercard logo and a debit card can take care of this requirement without the hassle of having to manage a credit account, or go through approval process, or reading and understanding fine print. With a debit card, this is no need to set up an autopayment since you only purchase with what you actually have on hand. It would be nice if the debit card had a charge back feature, however with the bank I use, that feature isn't a big loss, since my bank will stop a payment just like a check on fraudulent purchases. My only concern would be someone stealing my card and somehow guessing my pin number and withdrawing cash from an atm. I'd still get a fraud research, and most atms are camera monitored, but that cash wouldn't come back like a charge back or stop payment. This is mitigate however by a daily withdraw limit, and a daily POS limit. If I know I am gonna need more than 300 cash, or 600 in purchases, I simply call the bank and up the limits for the day, which happens instantly.

As far as building credit, that is nice and all, but there are only a few types of purchases where that concerns me. Houses, and cars. Since I own my car, and prefer to rent right now, credit is not a concern.

[realtonygoodwin]

Debt = slavery

[Warrior_of_Freedom]

1st of all why does it cost so much to have a place to live. I'd rather build a house than spend 20+ years paying for one.

[Reason]

Fees which get passed right on to the customer. That's right, the more people like you (OP) that use credit cards when you have the debit option, the higher the prices go.

The retailer factors this (cost of accepting credit cards) into their markup for all their products (how many retailers do you know that charge more if you pay with a credit card?) So.... that means that if you pay cash at a retailer that accepts credit cards you're getting f**ked since you're paying the higher markup for other people to use credit cards, meanwhile you don't recoup any of that cost since you don't get a % back at the end of the year...

[Seraphim]

Not if you are a willing participant of that debt.

I have personal debt...that is FAR from what makes me feel like a slave. I'm working like a dog to pay that debt, but I took on that debt through my own decisions.

The government debt/taxes attached to my name...that makes me feel like a slave.


Debt = slavery

[specsaregood]

The retailer factors this (cost of accepting credit cards) into their markup for all their products (how many retailers do you know that charge more if you pay with a credit card?) So.... that means that if you pay cash at a retailer that accepts credit cards you're getting f**ked since you're paying the higher markup for other people to use credit cards, meanwhile you don't recoup any of that cost since you don't get a % back at the end of the year...

I'm pretty sure thats exactly what I said. Also, retailers are forbidden by contract from charging more for credit card customers that is why they don't.

[smartguy911]

Have both and only use credit in case of emergencies.

[smartguy911]

I'm pretty sure thats exactly what I said. Also, retailers are forbidden by contract from charging more for credit card customers that is why they don't.

Yes they are forbidden and I am sure they do take into account cc fees without specifically mentioning them. In the end consumer pays for the % charge.

[Miss Annie]

I am an internet retailer. It costs me more money to process credit transactions. I have to figure this overhead into my prices. It is a fact.

[Feelgood]

The retailer factors this (cost of accepting credit cards) into their markup for all their products (how many retailers do you know that charge more if you pay with a credit card?) So.... that means that if you pay cash at a retailer that accepts credit cards you're getting f**ked since you're paying the higher markup for other people to use credit cards, meanwhile you don't recoup any of that cost since you don't get a % back at the end of the year...

There are many gas stations, as an example, in my area that advertise a lower per gallon cost for the gas, if you use cash and not credit. They have a cash price, and a credit card price. Leads me to believe retailers would much prefer your not using a credit card.

Just one example.

[realtonygoodwin]

Not if you are a willing participant of that debt.

I have personal debt...that is FAR from what makes me feel like a slave. I'm working like a dog to pay that debt, but I took on that debt through my own decisions.

The government debt/taxes attached to my name...that makes me feel like a slave.

Even if you are a willing participant. Back in the day, some people would sell themselves into slavery in order to pay a debt...they were still slaves.

Now, you may say you don't mind being enslaved, or that it is worth it to you. But if you are in debt to anyone, you are their slave.

[Johnny Appleseed]

I have'nt had a credit card in 20 years...I don't have any debt but then again I don't own anything but I enjoy the freedom of nothing.

[Zippyjuan]

Debit card's tied to checking account. >4% APR. Debit cards have lower fees for merchants. No monthly bill, and no risk of absurd interest rates if I don't pay on the right date in the exact amount, but that's a moot point if you use auto-payment like you.

I rarely use the debit card, but it does make my checking account more accessible. If I need cash for something, I can simply drive up to the ATM, take up to $300 out near-instantly, and be on my way.

You get 4% on a checking account? Really? Who is that through?

Merchants prefer you use debit instead of credit cards because the fees for them are lower. That is why most POS terminals default to asking for PIN or debit when you first select payment type. I have a no- fee credit card that I pay in full every month.

[Kludge]

You get 4% on a checking account? Really? Who is that through?

Merchants prefer you use debit instead of credit cards because the fees for them are lower. That is why most POS terminals default to asking for PIN or debit when you first select payment type. I have a no- fee credit card that I pay in full every month.
Local CU, $25k limit. There are a few hoops to jump through.

[Zippyjuan]

Nice! I have a checking with interest account which requires direct deposit but only pays a paltry 0.05 percent- token interest. Basically none. I got like 30 cents last month.