I
have mentioned this before. STOP USING DEBIT CARDS. The past couple
weeks I've been eating out for restaurant week and I see which
credit cards people are using. At Nougatine on Monday two people
we...
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I
have mentioned this before. STOP USING DEBIT CARDS. The past couple
weeks I've been eating out for restaurant week and I see which
credit cards people are using. At Nougatine on Monday two people
were using debit cards so I went off on my little rant.
DEBIT CARDS ARE SCARY. Debit cards (ATM cards with Visa/MC logos on
them) can be used like credit cards, except they pull money from
your checking account. So if you drop your debit card, someone can
pick it up and use it. And when they charge a bunch of stuff to
your account, YOUR RENT CHECK BOUNCES. So scary.
Why you shouldn't use debit cards:
1. Cash is instantly pulled from your accounts.
a. this means if you lose your card, someone can really mess with
your finances
b. you aren't making interest on the money like you would with a
credit card that gives you a month+ to pay
2. Disputing charges. You get a credit card statement each month
where you can look over your charges and make sure things are ok
before paying. If there's a bad charge, call the credit card and
they will pull it INSTANTLY. Then you can deal with the paperwork
or questioning to see what happened.
With a debit card, you have instantly lost that money from your
account. They say you are protected BUT YOU ARE NOT. YOU MAY NOT
GET YOUR MONEY BACK. I can quote sources here, but just
google debit card
fraudulent charges. Even if you want to believe your bank will
help you, why take that risk? Why not see a statement before you
pay?
A good credit card like Amex or Citibank will always side with you
when it comes to a credit card dispute.
3. Credit cards offer protection on items you buy. This has always
included protection against you being scammed by a merchant. But
now it includes protection against accidental loss, theft, or
damage to items. Some cards double warranties on items. I would
never buy anything valuable on anything but my amex card. I broke
my iPhone, and I got a new one for free with a single phone
call.
4. With credit cards you get points. Use them for miles, cash back,
gift cards, whatever. Anytime you use a card with a visa/mc/amex
logo, that card company gets 2-3% from the merchant. Companies like
Amex are giving you part of this back through their reward programs
(and the other protection they offer). Using your debit card means
your bank is getting this extra money and giving you nothing in
return (and even less protection).
STOP USING DEBIT CARDS. Get a couple free credit cards and use
them. Be safe. You can call your bank and get ATM cards that are
not debit cards. They only work with pin numbers. That's what I
have from BofA. I have never had a debit card and I never ever
will.
