You will laugh, but my concern is WHEN the devit will post.
I hv alwys thought the credit option takes longer to post than the debit due to the hoops the transaction jumps thru. Any thoughts on that/
i'm currently looking at ways to hide money, i have been putting a few grand away into my account without any probs, i earn a decent wage and dont have debts. Dont want to go on to how the money is generated by its not drugs. i still have about 60k to get into my bank and have of way of doing it. I dont mind paying taxes on it to be honest.
There should be some sort of reward for turning in the losers. Like the friend of a friend that collects unemployment, and has an off the books job, whose now debating where she wants to go on vacation.
Personally, that and the war is why I figured out how to stop paying my taxes.
In California, some gas stations (Arco/BP) charge a fee to pay with your debit card. The fee is 45 cents per transaction. They do not accept credit cards; many smaller businesses here don't take credit cards. I once asked Arco why the fee...the cashier said it's to cover the merchant costs they pay to use the ETF processing network. My bank does not charge fees for these transactions.
I almost always use credit. I don't like putting my PIN number in anywhere other than my bank.. I just feel like it's easier to "steal" and that maybe I can't count on the store to process it safely. I sort of assume that my PIN must get copied somewhere before it goes off to the ETF service and I don't know how much I can trust the store to carefully store that data.
What bugs me are stores that run your card as credit but don't require a signature... I think I've found this mostly at fast food type places like Quizno's.
If the post above is correct that some point of sale terminals are treating pin purchases like non bank atm transaction. You need to notify the bank and maybe even file a dispute for the fee. I would. I would also notify the merchant.
I found out some banks and even some merchants charge for pin transactions, most do not . In some states, merchants can not charge a fee. Banks still can.
The reason they want debit card holders to go into the store is the merchant provider puts a larger hold on the card-when used at the pump.
I have never heard of a bank charging a fee to use your debit card. Is this a geographical thing?
Frankly any bank that did that would not get my business.
been charged a fee for choosing debit. Neither have the people I talked to before I wrote this article, but this is an interesting point. If you are getting charged for selecting the debit option, can you let us know please which banks/merchants are responsible please? But to be fair, it's a point that makes the argument for choosing credit even stronger.
I am going on 110 days of a card dispute involving my debit card. I have done all my homework, but I still am at the mercy of the bank honoring the unauthorized amount. It comes down to your word against theirs when your account is compromised. If you use a debit card casually like I once did, consider opening another checking account and controlling the money you transfer to it... no overdraft protection, etc. I am waiting on $2000. Until then I am S.O.L.
Because of skimmers I have comtemplated using only cash. Therefore no one has access to my accounts but me. This month I did it. I went and cashed my paycheck giving up on debit/credit cards and checks too. All fees have vanished as well. No ATM fees as I took out all my check in cash. Paying my mortgage was an issue but all other bills could be paid in cash. You can see my success and problems with dealing only with cash at ChangeJarSavings.com.
Using debit can lead to hefty ATM fees at the end of the month. Some bank charge as much as $1.50 for use a non-bank ATM. So imagine buying gas, groceries, dinner, lunch, etc over the course of a month using "debit".
You didn't mention that most debit transactions have a fee associated with them. Your readers seem to have picked up on it, but it's a pretty big point to be leaving out of the debate.
I've never encountered any fraud when using my debit card. I only use the credit option at gas stations and purposely ignore the "come indoors if you're using a debit card" signs. The only impact I've seen in regards to this method is delayed billing (one to two days before the transaction shows up on my bank account). I would love to see the thumbprint being adopted over a four digit PIN number! I saw this method being adopted in some supermarkets in Europe.
I spend money on food every day in order to save time. I could cook everything from scratch (much cheaper), but not only do I not do that I also go to the other extreme of buying premade meals and takeout on the way home from work to save even more time (it takes forever to put that sandwich together myself!). :)
I'm I'm getting cash back, or it's a pain in the butt system, I select debit. If the store has an easy system (credit button) I use credit. My reasoning is simple. I signed up by debit card with visa to earn rewards, but in order to get the points I have to run it as credit.
In my comment above I meant to say when I travel or shop unusually I use a credit CARD, not the credit option on my debit card, in order to limit access to my actual cash in case of a merchant mistake or fraud.
I was going to mention hiring a service to do your lawn to save time/money, but with that photo, I don't think I'll mention it(though I already did). :)
You are forgetting that your bank almost certainly also offers fraudulent use protection - I believe all card companies and banks are required to limit your liability to $50 on fraudulent transactions (and most will not even charge you the $50).
So when you use "debit" you're not really giving up any protections. If the merchant charges you for the wrong amount, it's going to hit your checking account one way or the other and then you'll file a report with your bank contesting the charge. Usually your bank will front you the money back while they investigage (but not always). I'm a banker and have had many clients claim fraud and the process is the same whether they selected "debit" or "credit" at checkout as far as I know.
Personally I always select "debit" in order to help the local merchants that I frequent. As you mention, they avoid a 1-3% fee when a customer uses debit or cash. Plus the transaction hits the account sooner, helping me with budget tracking.
However if I'm making a big purchase or I'm out of town I often use "credit" in case of fraud or mistakes - that way I won't risk overdrawing my actual checking account if there's a problem.
I try to use this method when deciding Credit or Debit... If I am purchasing something that has the chance of being returned, I use credit. Why? Because when I return something the merchant puts it directly back on my card, no questions asked. If I had used debit, 99% of the time I have been given cash on the spot, and now that's something I have to keep up with.
For all other purchases, I just randomly pick one... most of the time I do credit but when I need a quick $20, I'll do debit.
My credit union charges me a fee every time I use debit (except at their ATM). So I always say credit (unless for some reason I'm getting cash, but that's rare). I'll let the store pay the fees.
I actually had a clerk (at a small boutique-style store) ask me to use debit, saying that using credit would cost them more money. I responded that using debit would cost me money and if it was a problem, I'd just make my purchases somewhere else.
With the way a lot of grocery stores are open 24 hours a day, it's very easy to tamper with the credit card scanners on the self check out machines.
There was a large case of this in the EU where they collected millions of cards + pins accross the entire EU and made sure NOT to use them until almost 6 months later, so it was near impossible to track how they initially got the card information. Almost nothing has been done to stop this kind of attack because they don't know where to start.
Do not type your PIN in any machine. If you need need cash, do it during the day with an attendant inside your bank. Obviously if you're trashed outside a bar and just want another 20 bucks, maybe this advice will seem harsh.
The gift I remember most and used the most in college wasn't expensive. The mother of a friend bought me a box of individual laundry detergent tabs and a jar of quarters. Totally useful!
My mother also bought me my vanity url of my first and last name. That has become more useful as I've started establishing myself in business and online.
You will laugh, but my concern is WHEN the devit will post.
I hv alwys thought the credit option takes longer to post than the debit due to the hoops the transaction jumps thru. Any thoughts on that/
i'm currently looking at ways to hide money, i have been putting a few grand away into my account without any probs, i earn a decent wage and dont have debts. Dont want to go on to how the money is generated by its not drugs. i still have about 60k to get into my bank and have of way of doing it. I dont mind paying taxes on it to be honest.
There should be some sort of reward for turning in the losers. Like the friend of a friend that collects unemployment, and has an off the books job, whose now debating where she wants to go on vacation.
Personally, that and the war is why I figured out how to stop paying my taxes.
In California, some gas stations (Arco/BP) charge a fee to pay with your debit card. The fee is 45 cents per transaction. They do not accept credit cards; many smaller businesses here don't take credit cards. I once asked Arco why the fee...the cashier said it's to cover the merchant costs they pay to use the ETF processing network. My bank does not charge fees for these transactions.
I almost always use credit. I don't like putting my PIN number in anywhere other than my bank.. I just feel like it's easier to "steal" and that maybe I can't count on the store to process it safely. I sort of assume that my PIN must get copied somewhere before it goes off to the ETF service and I don't know how much I can trust the store to carefully store that data.
What bugs me are stores that run your card as credit but don't require a signature... I think I've found this mostly at fast food type places like Quizno's.
If the post above is correct that some point of sale terminals are treating pin purchases like non bank atm transaction. You need to notify the bank and maybe even file a dispute for the fee. I would. I would also notify the merchant.
I found out some banks and even some merchants charge for pin transactions, most do not . In some states, merchants can not charge a fee. Banks still can.
The reason they want debit card holders to go into the store is the merchant provider puts a larger hold on the card-when used at the pump.
I have never heard of a bank charging a fee to use your debit card. Is this a geographical thing?
Frankly any bank that did that would not get my business.
been charged a fee for choosing debit. Neither have the people I talked to before I wrote this article, but this is an interesting point. If you are getting charged for selecting the debit option, can you let us know please which banks/merchants are responsible please? But to be fair, it's a point that makes the argument for choosing credit even stronger.
I am going on 110 days of a card dispute involving my debit card. I have done all my homework, but I still am at the mercy of the bank honoring the unauthorized amount. It comes down to your word against theirs when your account is compromised. If you use a debit card casually like I once did, consider opening another checking account and controlling the money you transfer to it... no overdraft protection, etc. I am waiting on $2000. Until then I am S.O.L.
Because of skimmers I have comtemplated using only cash. Therefore no one has access to my accounts but me. This month I did it. I went and cashed my paycheck giving up on debit/credit cards and checks too. All fees have vanished as well. No ATM fees as I took out all my check in cash. Paying my mortgage was an issue but all other bills could be paid in cash. You can see my success and problems with dealing only with cash at ChangeJarSavings.com.
Using debit can lead to hefty ATM fees at the end of the month. Some bank charge as much as $1.50 for use a non-bank ATM. So imagine buying gas, groceries, dinner, lunch, etc over the course of a month using "debit".
I have not used the debit option since my wife and I racked up $30 in ATM fees in a single month using our check card for groceries, gas, etc.
Paul Michael,
You didn't mention that most debit transactions have a fee associated with them. Your readers seem to have picked up on it, but it's a pretty big point to be leaving out of the debate.
-Nate
I've never encountered any fraud when using my debit card. I only use the credit option at gas stations and purposely ignore the "come indoors if you're using a debit card" signs. The only impact I've seen in regards to this method is delayed billing (one to two days before the transaction shows up on my bank account). I would love to see the thumbprint being adopted over a four digit PIN number! I saw this method being adopted in some supermarkets in Europe.
I spend money on food every day in order to save time. I could cook everything from scratch (much cheaper), but not only do I not do that I also go to the other extreme of buying premade meals and takeout on the way home from work to save even more time (it takes forever to put that sandwich together myself!). :)
I'm I'm getting cash back, or it's a pain in the butt system, I select debit. If the store has an easy system (credit button) I use credit. My reasoning is simple. I signed up by debit card with visa to earn rewards, but in order to get the points I have to run it as credit.
In my comment above I meant to say when I travel or shop unusually I use a credit CARD, not the credit option on my debit card, in order to limit access to my actual cash in case of a merchant mistake or fraud.
I was going to mention hiring a service to do your lawn to save time/money, but with that photo, I don't think I'll mention it(though I already did). :)
You are forgetting that your bank almost certainly also offers fraudulent use protection - I believe all card companies and banks are required to limit your liability to $50 on fraudulent transactions (and most will not even charge you the $50).
So when you use "debit" you're not really giving up any protections. If the merchant charges you for the wrong amount, it's going to hit your checking account one way or the other and then you'll file a report with your bank contesting the charge. Usually your bank will front you the money back while they investigage (but not always). I'm a banker and have had many clients claim fraud and the process is the same whether they selected "debit" or "credit" at checkout as far as I know.
Personally I always select "debit" in order to help the local merchants that I frequent. As you mention, they avoid a 1-3% fee when a customer uses debit or cash. Plus the transaction hits the account sooner, helping me with budget tracking.
However if I'm making a big purchase or I'm out of town I often use "credit" in case of fraud or mistakes - that way I won't risk overdrawing my actual checking account if there's a problem.
I try to use this method when deciding Credit or Debit... If I am purchasing something that has the chance of being returned, I use credit. Why? Because when I return something the merchant puts it directly back on my card, no questions asked. If I had used debit, 99% of the time I have been given cash on the spot, and now that's something I have to keep up with.
For all other purchases, I just randomly pick one... most of the time I do credit but when I need a quick $20, I'll do debit.
I use my credit card to take advantage of the rewards and the purchase protection, and pay the balance off each month.
My credit union charges me a fee every time I use debit (except at their ATM). So I always say credit (unless for some reason I'm getting cash, but that's rare). I'll let the store pay the fees.
I actually had a clerk (at a small boutique-style store) ask me to use debit, saying that using credit would cost them more money. I responded that using debit would cost me money and if it was a problem, I'd just make my purchases somewhere else.
With the way a lot of grocery stores are open 24 hours a day, it's very easy to tamper with the credit card scanners on the self check out machines.
There was a large case of this in the EU where they collected millions of cards + pins accross the entire EU and made sure NOT to use them until almost 6 months later, so it was near impossible to track how they initially got the card information. Almost nothing has been done to stop this kind of attack because they don't know where to start.
Do not type your PIN in any machine. If you need need cash, do it during the day with an attendant inside your bank. Obviously if you're trashed outside a bar and just want another 20 bucks, maybe this advice will seem harsh.
The gift I remember most and used the most in college wasn't expensive. The mother of a friend bought me a box of individual laundry detergent tabs and a jar of quarters. Totally useful!
My mother also bought me my vanity url of my first and last name. That has become more useful as I've started establishing myself in business and online.
I've heard similar things from other people recently - I might write a new article about this soon.