Debit vs. Credit Cards

[NoTrespassing]

I have never had a problem using my Amex internationally either. I pay zero annual fee, get a cash back bonus. Internationally I do pay some kind of processing fee on top of the purchase price. There are cards (Amex and non-Amex) that do not have that fee. Once we start traveling again I will find one of those cards to use when I am out of the country.

I do carry a VISA for that rare instance where Amex is not accepted. I bet I use it less than once a month. I do have some recurring charges go on that card. That way if I need to shut the card down to stop those charges I am not nerfing my main card.

Of course I pay them both off in full every month, so I do not care what the interest rate allegedly is.

I brought American Express travelers checks with me to the Philippines in 2006. I couldn't cash them anywhere.

 

[MossRoad]

 

[MossRoad]

What will you do? WHAT WILL YOU DO?

 

[dmccarty]

I have never had a problem using my Amex internationally either. I pay zero annual fee, get a cash back bonus. Internationally I do pay some kind of processing fee on top of the purchase price. There are cards (Amex and non-Amex) that do not have that fee. Once we start traveling again I will find one of those cards to use when I am out of the country.

I do carry a VISA for that rare instance where Amex is not accepted. I bet I use it less than once a month. I do have some recurring charges go on that card. That way if I need to shut the card down to stop those charges I am not nerfing my main card.

Of course I pay them both off in full every month, so I do not care what the interest rate allegedly is.

During our last trip out of the country we had a few places that would not accept AmEx. We used our other cards when that happened. The other issue, which is likely not that big of deal now, was the credit card should have a chip and pin, since this was used by many retailers in Europe. We had a few places that would not take the Visa or Mastercard because it was not chipped. I think all of our cards are chipped and have pins now.

One advantage of having good credit, and spending money on the cards, is service. I lost my AmEx card recently. Went to a store, paid by AmEx, went to another store and noticed the card was missing. Paid with a Visa and went back to the other store to see if they had found the card. No card so I called AmEx to cancel the card. They told me that I would not get a new card until the end of December which was not a big deal. Then Customer Service, said, "Oh, we can FedEx a new card to you tomorrow."

We put everything possible on the cards to earn airline points or cash back. Pay off the cards at the end of the month. The plane tickets for our next trip overseas will cost us very little because of the saved up air line miles.

Still not convinced the airline miles are better than just getting cash back though...

 

[two_bit_score]

Sometimes when I hear people with that story, I am reminded of him. I wonder what'll happen to him if he gets sick, needs long term care, etc?

It's not a life for me, but man, I can see how some folks could justify it.

Seems like a lot more are justifying it every day. The consequences are not what they used to be. I think in the end those of us who actually PAY for what we BUY are paying for all of it anyway.

 

[MossRoad]

Seems like a lot more are justifying it every day. The consequences are not what they used to be. I think in the end those of us who actually PAY for what we BUY are paying for all of it anyway.

Yeah. The only consequences they may have is at worst, they'll be broke with no one to take care of them and they'll be stuck in a government nursing home laying in their own feces on the taxpayers' dime.

 

[two_bit_score]

Yeah. The only consequences they may have is at worst, they'll be broke with no one to take care of them and they'll be stuck in a government nursing home laying in their own feces on the taxpayers' dime.

At that point, to them, it won't matter anyway. They can't see the connection.

 

[scaredychicken]

DEBIT

I hate Credit Cards

I hate Debt

Full Disclosure - I listen to several different sources for Debt Reduction, Debt Free Living, ... including Dave Ramsey and others

 

[Torvy]

DEBIT

I hate Credit Cards

I hate Debt

Full Disclosure - I listen to several different sources for Debt Reduction, Debt Free Living, ... including Dave Ramsey and others

Full Disclosure - I strongly dislike Dave Ramsey. Some of his advice is excellent for anyone. On credit cards, he is dead wrong (unless a person is completely lacking in self control). Like many have noted here, if you use a credit card to pay for your typical and recurring purchases and then pay it in full every month, you are using their money for "free" (or at least at no additional cost to you). Plus, many (most?) cards now offer useful benefits that can earn you additional money.

If I followed Ramsey's advice on credit cards, I would have at least $40,000 USD less over the past 10 years (just on cash back). Hard to calculate beyond that as I would have paid more for insurance, had less money invested, etc.

The reason many people are rich today is that they have learned to manage 'debt'. Rich people make their money work for them. The reason many (most?) people are poor (in US/Canada) is their inability to manage spending, not debt. Of course some of those who don't manage spending then fall into it worse by going into debt and keep spending. I guess they think they are governments...haha.

 

[Oaktree]

Ultimately, for most people Amex is an inferior card, but for a few it has advantages.

I had an Amex back in the 70s. I had a job that involved considerable travel, and they (1) had no credit limit and (2) were one of the few CCs that would issue a card to someone under 25 (I was 23 when I got it). Downside was a fairly steep annual fee and you had to pay it off in full each billing cycle. My employer reimbursed the fee, and was reasonably prompt at reimbursing travel expenses so it worked. At the time I primarily needed a CC for hotels and rental cars, and those all accepted Amex. I cancelled that card when I left that job, as I had no further need for it.

I didn't realize that it was widely accepted outside the hospitality industry these days...sure didn't used to be. Discover didn't used to be accepted as much as Visa/Mastercard, but that seems to have changed too.

Given that most CC have some sort of rewards program now, are the CC fees standardized or have merchants just accepted the higher fees now?