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Debit in place of credit? - 8/20/2008 4:28:30 AM   
500 lb. koolaid man



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Joined: 5/22/2006
From: Palm Harbor, FL, USA
Status: online 		Lets say you have a debit card that says mastercard on it for example, can you use that(charge like a debit) on websites that accept mastercard credit cards? My sister says yes but I've never done it before. Thanks.


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RE: Debit in place of credit? - 8/20/2008 4:39:08 AM   
ob1n



Posts: 389
Joined: 6/25/2005
From: Bridgeport, NE, USA
Status: offline 		Yes......just don't overdraw those babies.....cause the banks give hefty fees for that! And don't think they will NOT pay the bill if you do not have enough funds. WRONG! Federal law mandates the bank to pay the bill/charge and then(their favorite) they get to charge you the hefty fees! I learned that first hand. I thought that if the bank did not have the money, they wouldn't pay it and I would be fine.

I was being trained to sell debit/credit machines a couple years back. Truth be known, debit is actually better for everyone involved(retailer and customer) in saving both money from fees. In fact, most of the time banks give 'rebates' back to you for using your debit card more often.

Of course, this information is based off of what I was being trained by Vericom 2-3 years ago. And, no, I did not pursue that profession. I went into another rip-off industry......insurance!

Now, I've wised up and gone into the Powerline industry and selling the world's number 1 oil.....AMSOIL. Hey, I'm not judging anyone......just stating my opinion.

Hope this helps.

Ob1n of RCU

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RE: Debit in place of credit? - 8/20/2008 4:42:32 AM   
Anomie



Posts: 3695
Joined: 4/15/2005
From: Livermore, CA, USA
Status: offline 		Ob1n is correct. The card is treated as a major credit card by almost all retailers, and the same online.

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RE: Debit in place of credit? - 8/20/2008 5:19:43 AM   
500 lb. koolaid man



Posts: 1143
Joined: 5/22/2006
From: Palm Harbor, FL, USA
Status: online 		Thanks guys.


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RE: Debit in place of credit? - 8/20/2008 6:08:03 AM   
sheograth



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From: Berkeley, CA, USA
Status: online 		Figure its worth mentioning since we're on the general subject. NEVER give out your pin number online - I've seen people do it.

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RE: Debit in place of credit? - 8/20/2008 6:14:51 AM   
RCtruckRacer



Posts: 3437
Joined: 6/2/2005
From: Eugene, OR, USA
Status: online 		A debit card works as an electronic check, withdrawing monies out of your checking account when your purchase is completed. So yes, be careful you don't overdraw! It's no different than writing a bad check!

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RE: Debit in place of credit? - 9/28/2008 7:21:19 AM   
gravediggerracing



Posts: 3962
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From: SW Burbs of Chitown, IL, USA
Status: offline
quote:

ORIGINAL: 500 lb. koolaid man

Lets say you have a debit card that says mastercard on it for example, can you use that(charge like a debit) on websites that accept mastercard credit cards? My sister says yes but I've never done it before. Thanks.

Yes you can use your debit/check card like a credit card. Your checking or savings account balance is your spending limit. I personally would never use a debit/check card online for anything, no matter how secure it seems. They are directly linked to your checking or savings account...not good if someone gets ahold of your info and drains the accounts you use to pay your bills, etc. Always use a credit card-you are less vulnerable that way in case the worst happens.

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RE: Debit in place of credit? - 9/28/2008 7:26:06 AM   
gravediggerracing



Posts: 3962
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quote:

ORIGINAL: ob1n



I was being trained to sell debit/credit machines a couple years back. Truth be known, debit is actually better for everyone involved(retailer and customer) in saving both money from fees. In fact, most of the time banks give 'rebates' back to you for using your debit card more often.


Hope this helps.

Ob1n of RCU

Actually that is wrong. Let's use the very common debit/master card or visa check card most all of us have as an example here. If you use your check card as a debit card, you get charged a fee and the bank doesn't get charged anything. That's why they would prefer you to use it as debit. If you use the same exact card as credit, you don't pay a fee and the bank does. I never use debit, only credit. It's one way to stick it to the bank for wanting to charge me to spend my own money.

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RE: Debit in place of credit? - 9/28/2008 1:30:30 PM   
DaveG55



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From: Stockbridge, GA, USA
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quote:

ORIGINAL: gravediggerracing


quote:

ORIGINAL: ob1n



I was being trained to sell debit/credit machines a couple years back. Truth be known, debit is actually better for everyone involved(retailer and customer) in saving both money from fees. In fact, most of the time banks give 'rebates' back to you for using your debit card more often.


Hope this helps.

Ob1n of RCU

Actually that is wrong. Let's use the very common debit/master card or visa check card most all of us have as an example here. If you use your check card as a debit card, you get charged a fee and the bank doesn't get charged anything. That's why they would prefer you to use it as debit. If you use the same exact card as credit, you don't pay a fee and the bank does. I never use debit, only credit. It's one way to stick it to the bank for wanting to charge me to spend my own money.




Really you are both wrong. But a bit right too.
First whether or not you are charged a fee for using debit is up to your individual bank. I do not pay any fees at all for using my debit/check card for any purchase. Nor do I get rebates. It is true that retailers prefer you to use debit because then they do not face the 2% (or whatever) charge for a credit transaction. And make no mistake, you are not sticking it to any bank using credit - the retailer pays the fee - the bank collects it. In fact, the BANK PAYS NO FEES to anyone (unless they are giving a promotional rebate or something), they only charge fees - and they don't are who they charge, they just want to make a profit. So in the long run, by using credit, you are increasing the price YOU pay because that retailer is not just going to absorb that fee, they will increase their price to cover it. Also, when using debit, the retailer is paid immeadiatly and does not have to wait for the credit system to pay them.

But credit is safer than debit for the consumer. If you use the card as a credit card then you are accorded the same rights as a credit card customer as far as your liability and reporting guidelines. With a debit transaction however, you must report any theft/fraud much sooner (within 2 days of finding the theft) and if you don't report within those guidelines you can be liable for much larger losses (up to your eniter balance AND any line-of-credit that is tied to that account).

So, really, instead of making sweeping generalizations, people need to check with their bank to find out what their fees and guidelines are.

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RE: Debit in place of credit? - 9/28/2008 3:07:28 PM   
AutoXMan



Posts: 5970
Joined: 1/12/2006
From: Trumbull, CT, USA
Status: offline 		I've always been told not to use debit cards online. If somehow your number gets used again, there isn't a smuch protection as credit would have.


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RE: Debit in place of credit? - 9/28/2008 4:14:32 PM   
RCtruckRacer



Posts: 3437
Joined: 6/2/2005
From: Eugene, OR, USA
Status: online 		Typically the merchant fee for Visa MC is around 2-3%. It goes down to around 1.5-1.75% for a debit purchase (because there is a far less chance of a fraudulent charge). Amex charges up to 6% for merchant fees and Discover around 4-5%. The actual merchant fee varies, as the more purhcases made at a particular store will lower the merchant fee - This is all worked out on your contract when you set up a shop and have the POS (Point of Service) system installed. I used to manage offices, and have personally negotiated a POS contract. It's been a few years, but I doubt things have changed very much.

And your debit card should have all of the same protections as a typical Visa/MC. I know mine does. No doubt it depends on your bank. I have never heard of a bank charging for a debit purchase, and I would suggest anyone change banks if that is the case. However, most do charge a fee to withdraw monies from an ATM of a different bank - and that would usually be done with your debit card as they are also normally your ATM card.

edit: Just as an aside, I know that the offices I managed had the credit card deposits hit the bank account the day after the purchases were made. I can't say if that was because of our bank, or if that is typical. That's just how it was for us.

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RE: Debit in place of credit? - 9/28/2008 5:02:49 PM   
Ttam Says Blarg



Posts: 1132
Joined: 2/22/2008
From: Lake Arrowhead, CA, USA
Status: online 		Just go to walmart and buy a prepaid visa I see them all the time. If you lose it its no big deal because its not linked to your bank account and two it shouldn't have anymore than 200 dollars on it.

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RE: Debit in place of credit? - 9/28/2008 5:35:39 PM   
DaveG55



Posts: 6634
Joined: 1/12/2005
From: Stockbridge, GA, USA
Status: offline
quote:

ORIGINAL: RCtruckRacer

And your debit card should have all of the same protections as a typical Visa/MC. I know mine does. No doubt it depends on your bank.


You should maybe double check that.
Debit cards, like credit cards, limit your liability to the first $50. Debit cards however have different requirements on notification of theft/fraud. You must notify the bank within 2 days of discovery of the false transaction and should you be foolish enough to wait 60 days then you can be liable for everything that can be taken from your account - including any overdraft or line-of-credit linked to that account. Also unlike credit cards which pretty much remove any disputed charges right away a debit card theft can take a lot longer to get your funds restored.

The moral I guess is to always keep up with your account statements and know what YOUR banks rules and policy's are.

Personally TSB's suggestion sounds like a decent idea - but I have not really researched the prepaid credit cards much.

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RE: Debit in place of credit? - 9/28/2008 10:44:10 PM   
gravediggerracing



Posts: 3962
Joined: 7/21/2005
From: SW Burbs of Chitown, IL, USA
Status: offline
quote:

ORIGINAL: DaveG55


quote:

ORIGINAL: gravediggerracing


quote:

ORIGINAL: ob1n



I was being trained to sell debit/credit machines a couple years back. Truth be known, debit is actually better for everyone involved(retailer and customer) in saving both money from fees. In fact, most of the time banks give 'rebates' back to you for using your debit card more often.


Hope this helps.

Ob1n of RCU

Actually that is wrong. Let's use the very common debit/master card or visa check card most all of us have as an example here. If you use your check card as a debit card, you get charged a fee and the bank doesn't get charged anything. That's why they would prefer you to use it as debit. If you use the same exact card as credit, you don't pay a fee and the bank does. I never use debit, only credit. It's one way to stick it to the bank for wanting to charge me to spend my own money.




Really you are both wrong. But a bit right too.
First whether or not you are charged a fee for using debit is up to your individual bank. I do not pay any fees at all for using my debit/check card for any purchase. Nor do I get rebates. It is true that retailers prefer you to use debit because then they do not face the 2% (or whatever) charge for a credit transaction. And make no mistake, you are not sticking it to any bank using credit - the retailer pays the fee - the bank collects it. In fact, the BANK PAYS NO FEES to anyone (unless they are giving a promotional rebate or something), they only charge fees - and they don't are who they charge, they just want to make a profit. So in the long run, by using credit, you are increasing the price YOU pay because that retailer is not just going to absorb that fee, they will increase their price to cover it. Also, when using debit, the retailer is paid immeadiatly and does not have to wait for the credit system to pay them.

But credit is safer than debit for the consumer. If you use the card as a credit card then you are accorded the same rights as a credit card customer as far as your liability and reporting guidelines. With a debit transaction however, you must report any theft/fraud much sooner (within 2 days of finding the theft) and if you don't report within those guidelines you can be liable for much larger losses (up to your eniter balance AND any line-of-credit that is tied to that account).

So, really, instead of making sweeping generalizations, people need to check with their bank to find out what their fees and guidelines are.

Whatever. I know what my two banks charge and don't charge me, and know what I need to do to spend my money for free. I do agree that using the card as credit is always better than debit though.

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RE: Debit in place of credit? - 9/28/2008 11:23:13 PM   
sheograth



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