Debit vs. Credit Cards

[RSKY]

Why would anyone use a debit card instead of a credit card? There seems to be no advantage to a debit card. And if you pay it off monthly, several advantages to a credit card.

RSKY

 

[sbeckwith]

In my opinion - Debit cards are used to access cash and cash only. There is zero benefit to purchasing anything with a debit card - it exposes the buyer to too much risk.

 

[Eagle1]

Either way the banks make ~3% of every transaction and you get to pay that "tax"

 

[KennyG]

I think most ATM cards are debit cards, so you get it automatically, even if you don't use it that way.

Main reason is discipline - if you don't have it you can't spend it. Bad credit rating you can still get a debit card.

 

[Rockbadchild]

To answer the why I would say is most people are not good at managing money, so they use they debit card... and the advantage are using a credit card, mainly there is insurance on a credit card, you stole money from your credit card, you won't have to refund it, plus the incentive attributed by a credit card.

 

[NoTrespassing]

The only reason I can think of is a case where my son's school charges an extra 3% to pay tuition by credit card. In this case I pay by debit.

Our credit card pays us 1.5% on all purchases and they owe us over $2,200 right now. We use it as a vacation savings account. It's not the smartest way as it should be put into an interest-bearing account monthly but I'm too lazy to do that.

As far as protection goes, about 5 years ago I used my debit card to purchase gas to keep my cc balance down before leaving the country for a month. Thieves stole my debit card information and charged my account over $3,000 while I was out of the US. When I got back I found out my bank account was locked but thankfully they reimbursed me %100. It's protected by MasterCard. I don't use the debit card for purchases anymore except tuition.

 

[scootr]

In my opinion - Debit cards are used to access cash and cash only. There is zero benefit to purchasing anything with a debit card - it exposes the buyer to too much risk.

I use debit cards exclusively. No high interest credit cards for me. The debit card accesses cash I hold without having to carry cash. I earn 2% on each purchase. Yes earn 2%, have for years. And the seller pays the trnasaction fee not the buyer, hope this helps

 

[sea2summit]

Either way the banks make ~3% of every transaction and you get to pay that "tax"

It's mind boggling to me how few businesses will offer a cash discount anymore.

 

[sea2summit]

And the seller pays the trnasaction fee not the buyer, hope this helps

No they don't...

Change my mind.

 

[scootr]

It's mind boggling to me how few businesses will offer a cash discount anymore.

Most all fuel stations have a lower cash price here