Comments on: Why Banks Push Debit Cards http://thefinancebuff.com/2007/12/why-banks-push-debit-cards.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Chuck H http://thefinancebuff.com/2007/12/why-banks-push-debit-cards.html/comment-page-1#comment-1510 Chuck H Wed, 11 Feb 2009 07:00:10 +0000 http://blog.thefinancebuff.com/?p=199#comment-1510 Acutally, there is a bunch of material above that contridicts my experience using Debit cards almost exclusively. National City Bank Visa Debit Cards - It can take over a week before transactions post to the account. Not all transactions pull immediately. For example, it appears that for credit-style pulls (signature debits above), gas stations only request $1 from the card to prove it's active. The actual sale amount usually takes days to appear. - Restaurants frequently take a long time to appear - Stores frequently take several days to appear - We had a debit card DUPLICATED! and used in a different state to charge $850 or so worth of goods. The bank caught the fraud and shit down the cards. When I finally called to see why the card stopped working, they told me about the fraud and within 24 hours (? memory) we had the money back in the account as a provisional credit, and it took them about 2 weeks to make it permanent. My wife's card worked the entire time, so it was no big deal. - I LOVE my debit card - I get all of the convenience of a Visa card without spending money I don't have. This has helped us cut our credit card debt to almost nothing, since the convenience is the same, but the account balance is the "credit limit" that controls how much we can spend. - We also have several checking accounts with the bank. The debit card is only hooked to the "Cash Account" which is NOT the account the paychecks are deposited in... It only has discretionary funds and items I pay on the card using pre-approved debits (such as day care). Acutally, there is a bunch of material above that contridicts my experience using Debit cards almost exclusively. National City Bank Visa Debit Cards

- It can take over a week before transactions post to the account. Not all transactions pull immediately. For example, it appears that for credit-style pulls (signature debits above), gas stations only request $1 from the card to prove it's active. The actual sale amount usually takes days to appear.

- Restaurants frequently take a long time to appear

- Stores frequently take several days to appear

- We had a debit card DUPLICATED! and used in a different state to charge $850 or so worth of goods. The bank caught the fraud and shit down the cards. When I finally called to see why the card stopped working, they told me about the fraud and within 24 hours (? memory) we had the money back in the account as a provisional credit, and it took them about 2 weeks to make it permanent. My wife's card worked the entire time, so it was no big deal.

- I LOVE my debit card – I get all of the convenience of a Visa card without spending money I don't have. This has helped us cut our credit card debt to almost nothing, since the convenience is the same, but the account balance is the "credit limit" that controls how much we can spend.

- We also have several checking accounts with the bank. The debit card is only hooked to the "Cash Account" which is NOT the account the paychecks are deposited in… It only has discretionary funds and items I pay on the card using pre-approved debits (such as day care).

]]> By: Chris S http://thefinancebuff.com/2007/12/why-banks-push-debit-cards.html/comment-page-1#comment-1378 Chris S Fri, 23 Jan 2009 07:45:40 +0000 http://blog.thefinancebuff.com/?p=199#comment-1378 Bit different here in Britain. Over the last few years the push has been to do away with signature purchases in favour of chip and pin cards as these are seen as more secure and less likely to lose the banks money as result of fraud. Either way, however, the retailer pays the same fee per transaction, and the customer is not charged at all. Bit different here in Britain. Over the last few years the push has been to do away with signature purchases in favour of chip and pin cards as these are seen as more secure and less likely to lose the banks money as result of fraud. Either way, however, the retailer pays the same fee per transaction, and the customer is not charged at all.

]]> By: Terry B http://thefinancebuff.com/2007/12/why-banks-push-debit-cards.html/comment-page-1#comment-777 Terry B Sat, 02 Aug 2008 03:36:10 +0000 http://blog.thefinancebuff.com/?p=199#comment-777 It seems to me that banks hold credits to debit cards for their investment purposes. People with low account balances are more plentiful than those with large accounts. Also people with big bank accounts probably never use a debit card. Debits show up against a person's account immediately, while credits can take 10 days to appear even when bank personnel can see the credit sitting on the card, they claim they can not transfer the funds to the checking account. Apparently some guru on another planet must breathe on the account first. I am done with debit cards. What a scam. It may not be illegal, but it is immoral. It seems to me that banks hold credits to debit cards for their investment purposes. People with low account balances are more plentiful than those with large accounts. Also people with big bank accounts probably never use a debit card. Debits show up against a person's account immediately, while credits can take 10 days to appear even when bank personnel can see the credit sitting on the card, they claim they can not transfer the funds to the checking account. Apparently some guru on another planet must breathe on the account first. I am done with debit cards. What a scam. It may not be illegal, but it is immoral.

]]> By: Dan L http://thefinancebuff.com/2007/12/why-banks-push-debit-cards.html/comment-page-1#comment-689 Dan L Wed, 11 Jun 2008 13:38:00 +0000 http://blog.thefinancebuff.com/?p=199#comment-689 I found a bank that is giving back to the customer for using their debit/credit card. I read about it first on clarkhoward.com. The website is smallenoughtocare.com. They offer a 6% checking account. Read all the fine print though. You must have ten point of sale transactions on your debit/credit card each month to get the high interest rate (and other requirements). I found a bank that is giving back to the customer for using their debit/credit card. I read about it first on clarkhoward.com. The website is smallenoughtocare.com. They offer a 6% checking account. Read all the fine print though. You must have ten point of sale transactions on your debit/credit card each month to get the high interest rate (and other requirements).

]]> By: Adeem http://thefinancebuff.com/2007/12/why-banks-push-debit-cards.html/comment-page-1#comment-349 Adeem Mon, 10 Dec 2007 21:57:00 +0000 http://blog.thefinancebuff.com/?p=199#comment-349 Interesting. Up here in Canada we have less complications. We have only the ATM debit cards (no debit cards with VISA or Mastercard) and regular credit cards. Interesting. Up here in Canada we have less complications. We have only the ATM debit cards (no debit cards with VISA or Mastercard) and regular credit cards.

]]> By: TFB http://thefinancebuff.com/2007/12/why-banks-push-debit-cards.html/comment-page-1#comment-345 TFB Mon, 10 Dec 2007 05:38:00 +0000 http://blog.thefinancebuff.com/?p=199#comment-345 Ted,<br/><br/>I've never seen a retailer accepting Visa/MasterCard but not accepting ATM debit cards. Visa itself operates a large EFT network which charges less than its credit card network. <br/><br/>Clicclic,<br/><br/>Thank you for your compliments. I read Jonathan's My Money Blog too. It's a good blog.<br/><br/>Incidentally I just posted part two of the agency bond story:<br/><br/><a HREF="http://thefinancebuff.com/2007/12/how-callable-bond-worked.html" REL="nofollow">How a Callable Bond Worked</a><br/><br/>Hope you find it helpful. Ted,

I've never seen a retailer accepting Visa/MasterCard but not accepting ATM debit cards. Visa itself operates a large EFT network which charges less than its credit card network.

Clicclic,

Thank you for your compliments. I read Jonathan's My Money Blog too. It's a good blog.

Incidentally I just posted part two of the agency bond story:

How a Callable Bond Worked

Hope you find it helpful.

]]> By: clicclic http://thefinancebuff.com/2007/12/why-banks-push-debit-cards.html/comment-page-1#comment-342 clicclic Fri, 07 Dec 2007 15:27:00 +0000 http://blog.thefinancebuff.com/?p=199#comment-342 Oh, sorry about the last off-topic rant. <br/><br/><br/><br/>The solution to this sig debit vs PIN debit is simple: Don't use Debit cards!<br/><br/><br/>You are essentially unprotected should someone get hold of your debit card and go to town on it. Your money is gone, and you won't get it back until you've proven it was stolen. <br/><br/>Just use plain-old boring credit cards. Debit cards are a young fool's game. These kids don't get how easy it is to steal from a debit card. Oh, sorry about the last off-topic rant.

The solution to this sig debit vs PIN debit is simple: Don't use Debit cards!

You are essentially unprotected should someone get hold of your debit card and go to town on it. Your money is gone, and you won't get it back until you've proven it was stolen.

Just use plain-old boring credit cards. Debit cards are a young fool's game. These kids don't get how easy it is to steal from a debit card.

]]> By: clicclic http://thefinancebuff.com/2007/12/why-banks-push-debit-cards.html/comment-page-1#comment-341 clicclic Fri, 07 Dec 2007 14:41:00 +0000 http://blog.thefinancebuff.com/?p=199#comment-341 Dude, this is a great blog. I've been following mymoneyblog for several years and this blog may be a tinge better. The jury's out. I love Jonathan (sorry if I spelled it wrong J!), but your blog is just great.<br/><br/>I really really appreciate you talking about Government Sponsored Enterprise (GSE) bonds or "F-bonds" back in July: <br/><br/>http://thefinancebuff.com/2007/06/agency-bonds-for-higher-yield-over.html<br/><br/> I keep getting those stupid "Do what Senators do and invest in F-series bonds" things in the mail (great kindling) and was wondering what all the fuss was about. Thank you so much for covering this. <br/><br/>We'd all love to find a safe vehicle that pays close to double the U.S. gov't's announced inflation numbers (total B.S. numbers by the way). I guess I need to keep looking... Dude, this is a great blog. I've been following mymoneyblog for several years and this blog may be a tinge better. The jury's out. I love Jonathan (sorry if I spelled it wrong J!), but your blog is just great.

I really really appreciate you talking about Government Sponsored Enterprise (GSE) bonds or "F-bonds" back in July:

http://thefinancebuff.com/2007/06/agency-bonds-for-higher-yield-over.html

I keep getting those stupid "Do what Senators do and invest in F-series bonds" things in the mail (great kindling) and was wondering what all the fuss was about. Thank you so much for covering this.

We'd all love to find a safe vehicle that pays close to double the U.S. gov't's announced inflation numbers (total B.S. numbers by the way). I guess I need to keep looking…

]]> By: Anonymous http://thefinancebuff.com/2007/12/why-banks-push-debit-cards.html/comment-page-1#comment-340 Anonymous Fri, 07 Dec 2007 14:25:00 +0000 http://blog.thefinancebuff.com/?p=199#comment-340 One benefit to the consumer that you omit is that almost all retailers accept the Visa/MC debit cards. Not all accept ATM debit cards.<br/><br/>Also, there is the convenience factor for the consumer. Doesn't it make sense that the bank is compensated for handling the transaction.<br/><br/>Ted One benefit to the consumer that you omit is that almost all retailers accept the Visa/MC debit cards. Not all accept ATM debit cards.

Also, there is the convenience factor for the consumer. Doesn't it make sense that the bank is compensated for handling the transaction.

Ted

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