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76 Comments
- NYConcepts, on 11/09/2009, -0/+40Well, I've been using my debit card online for years now and I'm yet to have any problems. I definitely see how it could be a problem, but until I have one....
- borez, on 11/09/2009, -1/+31Sponsored by the major credit card issuers.
Debt... it's a mugs game. - Hybred1234, on 11/09/2009, -0/+22Yeah, same here. A lot of these are easily avoided by simply adding an 11th line. "Don't be stupid".
- LostRiot, on 11/09/2009, -1/+22I'd rather not have a credit card, everyone I know with one started paying it off every month and now just makes the minimum repayments, too easy to get into debt if you don't have a fixed income.
These risks really aren't proper risks, they're just differences. - nuketrap, on 11/09/2009, -1/+21Ummm that kind of felt like propaganda to get people back onto credit cards...
1) Well for one, I don't have a credit card, I only buy ***** if I have the bloody money
2) I have never come across an instance where I haven't been able to return something with a debit card used to buy it, other than it being a store policy on no returns
3) How the ***** can someone buy ***** with your debit card without your pin?
4) My debit card is linked with PayPal and if something does wrong they can fix it, plus if something gets bought online using my account I usually get the receipt via email, which would probably tell me that somethings suss and I can tell them it wasn't me to get it cancelled...
5) If you tie your Mobile to your bank account for authorized banking. no one can transfer funds to an account that isn't held by you unless they put the code sent in the SMS.
6) People are morons and should be able to tell if a site is dodgy, it's common sense, no one will sell a brand new laptop for $50...
7) This article is just to scare people back into using their credit cards
But there are some conveniences in using your credit card... - AmyVernon, on 11/09/2009, -2/+22Some good tips here - a lot of them are exactly why I do all my holiday purchases on credit cards. That way if there are any issues, it's easier to resolve them and not get ripped off. I don't carry my debit card around most of the time anyhow.
- hivoltage815, on 11/09/2009, -0/+176. Do use cash or checks when not using a credit card.
Do realize that nobody accepts checks anymore and that getting cash stolen is a lot harder to do something about than getting a debit card stolen. - calibud, on 11/09/2009, -0/+11When you sign for a transaction using your debit card (i.e. Visa or Mastercard debit card) you carry the same protection as a normal credit card. This article is referring to PIN based transactions.
You'll find many articles like this one: http://www.thesunsfinancialdiary.com/personal-fina ...
"It’s important to know that Visa debit cards carry the same protections as Visa credit cards. For example, all Visa cardholders (prepaid, debit or credit) are protected by Visa’s Zero Liability policy. This policy means you pay nothing if unauthorized purchases are made on either a Visa Credit card or Visa Check card when you choose to sign for your transactions." - topgigmedia, on 11/09/2009, -0/+9agreed. I typically don't buy things online that I am not 100% positive about purchasing. I haven't had any issues and have shopping online for over a decade.
- mdraper, on 11/09/2009, -1/+10That's why I opt for Cash. If you pay in cash and take the product back to the store, they give you cash back. Working on a budget? Just bring the amount you budgeted and BAM! No more going over budget :P
- ibdav, on 11/09/2009, -0/+8Boils down to one point - Debit cards (as far as you are concerned) are not really very well insured.
I'm still not quite sure why (assuming you have fairly decent control over your spending habits) one would use a debit card over credit. I know my primary credit card here in the UK gives me 72 days to pay off purchases as they are put on, which can be a fair amount of interest saved by having the money sat in the bank. - phogasmic, on 11/09/2009, -0/+7I use mine online all of time as well and never had a problem.
- Saprta, on 11/09/2009, -1/+8I only use my debit for purchases. Why? Because if i buy something for $10, I know I'll be paying $10 dollars. Screw you credit companies and your interest rates.
- vinod1978, on 11/09/2009, -3/+9What???
"2. Don't use your debit card for online purchases — ever." -- Yeah just use your credit card and pay the incredibly high interest rate. Just use reliable online stores like Amazon so you can return whatever you want. Whoever wrote this is a moron.
"5. Do use credit cards instead of debit cards." - I'm beginning to think whoever wrote this works for a credit card company.
"6. Do use cash or checks when not using a credit card." -- Yeah if you live in the 18th century.
"7. Do maintain multiple accounts." -- and then pay the fees for every single account that you have...Smart! (NOT) - sgerwel1985, on 11/09/2009, -0/+6Personally i'd rather use my debit card. Seeing as now you can set up the accounts so that they can't be drawn beyond your current cash value. Which is rather nice cause you can 1) avoid overdraft fees 2) control your spending.
While i understand why they say advocate using a credit card instead, i rarely purchase much stuff online. Usually when i do purchase items online i do purchase items through trusted vendors i have used in the past. However, don't get the impression after reading this article that credit cards can't be exploited the way debit cards can.
Either way, be careful where you buy. Regardless of using credit or debit. - nicksilvestri, on 11/09/2009, -0/+5*Dos and Don'ts
!!!!!!! - KeithLM, on 11/09/2009, -0/+5You only pay interest if you don't pay your bill in time, and on a lot of cards you get an 20+ days from the statement closing date before your bill is due. I'm beginning to think people commenting here complaining about interest as if it happens instantly are the morons, definitely not the author of this article.
1. Buy only what you can afford.
2. Keep your money in an interest bearing account until the day your payment is due.
3. Take advantage of credit cards with benefits. I get 1% to 5% back on my credit card depending on where I make purchases and the specials my bank is running. And I have never paid them interest. - Hayley3AM, on 11/09/2009, -0/+4argh i use my debit card all the time. like even for things that cost .39 cents :C. however, i've never used it online. so, that's one good thing going for me, right?
- KeithLM, on 11/10/2009, -0/+4Why? Is it a trap to use other people's money for as long as I can without paying them interest? I got a lot more money in the bank than I have on credit cards, and I'm not paying one cent of interest on those cards, yet I'm earning interest on the money in the bank. Seems like a good situation to me. Credit cards are only a trap if you are too stupid to pay attention to how much you are spending and how much you have in the bank.
- mr1337, on 11/09/2009, -0/+4Sounds like a lot of FUD to me. When you use your DEBIT card as a CREDIT card (i.e. sign instead of giving PIN) you receive all of the protections that a credit card gives. This includes buying online. (I have never seen an online retailer that asked for my PIN.)
- MScrip, on 11/09/2009, -0/+4I tried shoving cash into my floppy drive... it didn't work!
- Treshnell, on 11/09/2009, -0/+4Is it hard to limit yourself to not spending more than you can afford? So yeah, you don't have a fixed income? Then don't spend more than you can cover yourself for.
A credit card is a tool and when you know how to use it properly, can be extremely useful. - geoboy, on 11/10/2009, -0/+3Does a debit card really so magically fix your budgeting problems? I've known people who quit credit cards and switched to debit cards only to find themselves overdrafting on their account all the time. I'd rather pay interest than pay ridiculous overdraft fees. At least that way you get all the benefits of credit.
- OverDriven, on 11/09/2009, -0/+3I've been using my debit card pretty much every single day for 10 years without any of the problems mentioned in this article. It's a Bank of America card and FWIW, they do closely monitor it and will instantly refund fraudulent or incorrect charges.
- eadnams, on 11/09/2009, -0/+3Wow, in before confused Canadians (Who have a really good Debit system, without these issues).
- MScrip, on 11/09/2009, -0/+3For real. I got a new checking account 2 years ago, and I have never ordered checks. I do everything online.
Money is just digital bits nowadays. Why write a check, use a stamp, and mail the bill in... so they will turn the check back into digital bits and discard the check? Just send the bits digitally! - KeithLM, on 11/10/2009, -0/+3Yay! Finally someone on digg that mostly gets it. One thing is there is a transaction fee the vendor pays each time they charge your card. The bank makes money whether or not you pay them interest as they get paid per transaction. Still you are profiting with this method, so good for you. It's what I do also.
And gasp! I like to purchase things with store cards that give me free interest for an extended period of time. Yes, I know what they hope I'll do, but I never pay a dime on those, and the money gets to sit in my checking account earning 4% until the last possible moment. When Rooms To Go offered me 48 months no interest with a small monthly payment I said "Yes please!". I could have paid it all off, but instead I'm paying it off in equal installments that should have it paid 1 month before the plan expires. And that's automated thanks to my bank.
A little bit of self discipline is all it takes and credit cards are a great thing. - atlasdugged, on 11/09/2009, -4/+7Did not realize the risk with debit cards online...good tip
- KeithLM, on 11/10/2009, -0/+3Why? Is it a trap to use other people's money for as long as I can without paying them interest? I got a lot more money in the bank than I have on credit cards, and I'm not paying one cent of interest on those cards, yet I'm earning interest on the money in the bank. Seems like a good situation to me. Credit cards are only a trap if you are too stupid to pay attention to how much you are spending and how much you have in the bank.
- Sabin8, on 11/10/2009, -0/+31) Heres a tip for debit cards, don't use them.
2) Get a credit card, much easier to solve disputes with charges.
3) Also, don't be a tard with your credit card, buy things only if you have the money in your account to pay off your debt. I'm only 20 and I have 3 credit cards, 1 debit card and 0 credit card debt because I manage my money well. Also, take advantage of online pay for both your bank and credit card, makes things much smoother.
4) Happy spending. - mirunit, on 11/10/2009, -0/+3@LostRiot
Then.... stop .... using .... it. If you have issues with cash flow, the solution is called a budget. Also, you can go online or call the credit card company and they will be happy to tell you your balance. - SecretMiracle, on 11/09/2009, -2/+4Buried for credit card propaganda.
- KeithLM, on 11/09/2009, -1/+3I do almost all my spending on my credit card each month. And I pay it off, therefore I pay only for my purchases and not for interest. Then I get 1% to 5% back depending on where I purchased the items from and what specials my bank is offering. Because of the way my billing cycle runs if I buy something expensive today I won't have to pay it off until about new years, and I'll be earning 4% on the cash in my checking account until then. Seems like a no-brainer to me.
- ventg4fun, on 11/09/2009, -0/+2"6. Do use cash or checks when not using a credit card.
This is a much safer way to conduct transactions. With cash or checks, there are fewer ways for an individual to steal your debit card number or accidentally double-swipe your card." THAT, I don't buy. In the course of my job, I've talked to too many computer security people who've told me that paper checks are much more vulnerable to theft/I.D. theft that debit cards. Some of the other items there are good advice, but I would chuck this one. - ventg4fun, on 11/09/2009, -0/+2They do, but it's a f*****g hassle to get it approved. half the time, their pos scanners won't read it properly, so another big hassle getting managers approval, etc., etc. Not worth it to me anymore.
- KeithLM, on 11/09/2009, -0/+2I'd prefer never to have a debit card due to the risks with it. However with my bank if I use my debit card 15 times per month I get 4% interest on my checking account. So I purchase lunch and other small purchases with it, things I'd never need to return. Everything else goes on my credit card.
- schnikies79, on 11/09/2009, -1/+3In response to #3
They can run your debit as a credit card, which most allow since they are Visa/Mastercard debit cards. - TheEggAndI, on 11/09/2009, -0/+2i try to avoid using my credit card as much as possible as to not dig myself into debt. but i prefer buying things online. i used to use my debit card for these purchases til my dad's accountant told me i shouldnt do that at all.
but does anyone know where paypal falls into this situation? is it any safer even if its linked to my bank account/debit card? - dvsbastard, on 11/09/2009, -0/+2I love my CC, but that's only because it doesn't cost me anything... With no fee's and all my balance paid before interest is accrued, that means I get free credit... and so I still get an interest return for up to a month on the money that I would have otherwise spent - which means the banks are actually losing money - and I am gaining it!
I'm sticking it to the banks 1 dollar at a time (plus I love the convenience). - Treshnell, on 11/10/2009, -0/+2The vast majority of budgeting problems stem from user error. People just don't care enough to keep track of their own finances.
I'm not saying things can't happen to leave you hurting. A single accident or health problem can wipe you out if you're not prepared, financially. I know what that's like and I fear it happening again when I decide to get a large loan for a house. I can afford the loan and have a little extra to put into savings each month, but an emergency or two later, and that might not be the same situation. - KeithLM, on 11/09/2009, -0/+21. I know people that do this and very few people ask for ID.
2. Your card is technically invalid without your signature on the back. A merchant should refuse it according to their agreement with the credit card companies. Granted few cashiers know or care about that.
I know some people that use similar logic for not signing it thinking that if it's not signed they will be asked for ID. Stupid, stupid, stupid. - MewtwoReturns, on 11/10/2009, -0/+2You should ALSO sign the card in addition to writing ask for ID. Technically, even if you show ID along with an 'ask for ID' card, it's not a valid card, and stores are not obligated to accept it. (I work in a store whre Visa has sent us documentation asking us to refuse unsigned credit cards unless the customer not only shows ID, but signs the card in front of us, and the ID, credit card signature panel, and sales slip signatures all match.)
Do stores actually refuse sales based on this? Not very often. Mainly if someone's a jerk or something.
The other danger of only writing ASK FOR ID is that if your card IS stolen, and they find out you never signed it, suddenly they have an out -- "you never signed your card, so it's not valid, so we're not paying these fraudulent charges." With how unscrupulous banks have become over the years, would you be suprised if your bank tried something like this if your unsigned card was stolen? - LostRiot, on 11/10/2009, -0/+2I'm from the UK so I don't really know, but I'm pretty sure these "issues" are basically false
- hankscorpio123, on 11/10/2009, -0/+2Wow, what bank do you use that gives you 4% interest nowadays??!
- aurisor, on 11/10/2009, -0/+2People really should consider the source before trusting information. This article was written by "creditfyi.com" and syndicated by yahoo. Creditfyi is owned by freescore.com, which you may remember as the shady company that Ben Stein was hawking not too long ago.
While some of the information in there may be true, you need to remember that FreeScore's business depends on people using credit cards. The point is to scare you away from debit cards, not to give you the information you need to make an informed decision.
I'm not saying the article is false...just consider the author's agenda when considering the facts he presents you with. - VitriolAndAngst, on 11/10/2009, -0/+2I've done ALL MY PURCHASES for the last 7 years with a Debit Card.
My wife snuck in a Target or some such credit card a few years ago when things are tight -- I just found out about it and it jumped up to 20% interest.
I've had one or two fraud issues and they were all resolved. I guess I'm just careful of purchases on the front end.
Absolutely no issue with my Debit card so far.
I'm too forgetful to use a credit card and pay off the balance -- I'm sure NOT using a credit card for ANYTHING has saved me thousands by now. - nuketrap, on 11/10/2009, -0/+1#3 I am pretty sure that's only if it is a debit credit card
#5 is something new my bank took up...
The whole safety factor thing is definitely there, but common sense usually prevails in most circumstances. By common sense I mean, covering your pin, not giving it to anyone, making sure it is on you at all times, calling to get it canceled if it is lost etc. - nuketrap, on 11/10/2009, -0/+1But isn't that ONLY if you have a debit credit card?
- aurisor, on 11/10/2009, -0/+1Unfortunately, our financial system is designed to punish those who avoid debt. Unless you really live in the sticks, you won't be buying your house with cash, and the rates you receive will be based on your credit history. Furthermore, the kind of thing you suggest (penalizing credit card users) is against the agreement retailers sign to be able to accept major credit cards.
I definitely agree with where you're coming from, but unfortunately, the system is stacked against that kind of living.
Personally, I just use a credit card as a buffer. I charge about 40% of my limit every month and pay it in full at the end of the month. Sometimes, if I have a lot of expenses, I'll decide to pay a month's interest and pay it back next month. I also keep an amount of cash equal to my card's limit in a special account as an emergency fund.
It's honestly not really much work at all, and when everyone was getting their rates jacked up a couple months ago, I got a letter from my credit card company saying that they were upping my limit and lowering my rate.
If you don't think you can handle the temptation, you're better off having no credit history than awful credit history and piles of debt, but there are enough financial coercions in place that having a credit card is pretty much necessary. - TwwIX, on 11/10/2009, -1/+2In other words, "Use your Credit Cards to pile up more debt."
***** off! -
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