Credit card vs. Debit card

[Bird]

I use debit card. If your mail is late getting the payment to them or someone at the cc company doesn't process the payment in time you could get hit with late fees

Yeah, but I haven't mailed a payment in years, so I can't have that problem. I just do it online and you can even set the date you want them to post the payment.

Back when I was mailing payments in, once in 1995, I got a bill from the credit card company that showed not only the current month's charges, but the previous month not being paid, so I was due for one month, plus a late charge (as you said) and the previous month's amount. I checked on my checking account with my bank (actually credit union) and sure enough the previous month's check had not come in. So I stopped payment on the check and sent a new one. As it turned out, the credit card company received the first check the same day I sent the second one, they sent it through, and then the credit union returned the first check since I had stopped payment on it.:laughing::laughing: So the credit card company had me charged for a late charge, plus a bounced check, plus interest, and the credit union had me charged for the stop payment. And all because apparently the Post Office lost that check for a month. However, when the credt card company and the credit union realized what had happened, they removed all those extra charges, so it didn't cost me anything but some time. But I'm sure glad I don't have to write checks anymore.:laughing:

In 2011, I wrote 4 checks and gave each of them to the recipient in person; no mail. One was to the roofers, one to a tree removal and pruning company, and the other two to the county tax collector for vehicle registrations.

 

[RoyJackson]

Yeah, but I haven't mailed a payment in years, so I can't have that problem. I just do it online and you can even set the date you want them to post the payment.

So do I...and as a word of advice, print out those confirmations (download a free ".pdf" printer driver if you want to save them on your PC).

I have had one or two occasions that those confirmations saved me a late charge. Some of these credit companies outsource the work to foreign nations...and sometimes the results aren't good.

 

[flyingcow]

Biggest difference between the two is that you have a much greater degree of protection with a credit card purchase then you do with a debit card. If you buy online and you never receive your package, or you have a problem, the credit card can be very good at getting your money back or delaying payment.

As for personal responsiblity, both will get you into trouble.

Eddie

I agree 110% to what Eddie said.

I have both. i prefer to use my credit card(s) for most purchases. i like the protection. i also like the ability to contest a purchase. Only done this , maybe 3 times(in 20 yrs), but it's been a plus.

Debit/ATM cards i use for withdrawing cash from the ATM's. Thats pretty much all I use them for.

 

[Bird]

So do I...and as a word of advice, print out those confirmations (download a free ".pdf" printer driver if you want to save them on your PC).

I have had one or two occasions that those confirmations saved me a late charge. Some of these credit companies outsource the work to foreign nations...and sometimes the results aren't good.

They send confirmations via e-mail and I just save that e-mail until after the next month when it's shown on the new statement, and of course also shown on my monthly bank statement.

 

[flyingcow]

Yeah, but I haven't mailed a payment in years, so I can't have that problem. I just do it online and you can even set the date you want them to post the payment.

Back when I was mailing payments in, once in 1995, I got a bill from the credit card company that showed not only the current month's charges, but the previous month not being paid, so I was due for one month, plus a late charge (as you said) and the previous month's amount. I checked on my checking account with my bank (actually credit union) and sure enough the previous month's check had not come in. So I stopped payment on the check and sent a new one. As it turned out, the credit card company received the first check the same day I sent the second one, they sent it through, and then the credit union returned the first check since I had stopped payment on it.:laughing::laughing: So the credit card company had me charged for a late charge, plus a bounced check, plus interest, and the credit union had me charged for the stop payment. And all because apparently the Post Office lost that check for a month. However, when the credt card company and the credit union realized what had happened, they removed all those extra charges, so it didn't cost me anything but some time. But I'm sure glad I don't have to write checks anymore.:laughing:

In 2011, I wrote 4 checks and gave each of them to the recipient in person; no mail. One was to the roofers, one to a tree removal and pruning company, and the other two to the county tax collector for vehicle registrations.

Good story. i could see how that comedy of errors happened. been there done that!

 

[johnk]

I use my credit card for every purchase I make. Gas, groceries,TSC, Home Depot. I use it online offlinne and in between but the secret is to pay it off every month before it's due. With the points I get on the card its like 2% on gas purchases and 1% on everything else. I drive a v-10 and the points add up quickly. I have 54,000 points on the card this year and they did the bookeeping and I can buy my store cards in different increments from HD,Lowes, etc. for up to $540.00 at this point and it didn't cost me a cent... :thumbsup:

 

[jinman]

Bird's story sure sounds familiar. I always 'print' my confirmation page to an electronic file on my computer for a paperless copy. Just last month, I paid both my credit card and home mortgage online to the same company. I saved both confirmation pages as normal. A few days later, I noticed my mortgage had been debited from my account, but not the credit card bill. I went back to my CC company website and found I had a $30 late fee and no payment. So, I immediately pulled up my receipt. OH FUDGE! The darn thing showed one screen before the final agreement and confirmation.:mur: I had somehow become distracted and did not complete the transaction. My record was actually evidence that I'd blown it.:confused2: Oh well, you can bet I won't let myself get distracted again. It was an expensive $30 lesson.

 

[Bird]

Bird's story sure sounds familiar. I always 'print' my confirmation page to an electronic file on my computer for a paperless copy. Just last month, I paid both my credit card and home mortgage online to the same company. I saved both confirmation pages as normal. A few days later, I noticed my mortgage had been debited from my account, but not the credit card bill. I went back to my CC company website and found I had a $30 late fee and no payment. So, I immediately pulled up my receipt. OH FUDGE! The darn thing showed one screen before the final agreement and confirmation.:mur: I had somehow become distracted and did not complete the transaction. My record was actually evidence that I'd blown it.:confused2: Oh well, you can bet I won't let myself get distracted again. It was an expensive $30 lesson.

Ooops.:laughing: And being subject to doing something like that is why I check both the credit card and credit union websites before the due date to see that it actually has been paid. I pay a little earlier than necessary to give myself that cushion. For instance, I have a credit card that closes out on the 24th, with payment due by the 19th of next month to avoid late charges and interest, so the 25th I print out a copy of the statement, reconcile it, attach the receipts to it and file it. Then I schedule the payment to be posted the 10th of next month. That gives me 9 days in case I have a problem.

 

[Egon]

My purchases are almost all on credit cards. Paid of at the Bank Machine or at a Teller every month.

For online I use a credit card that has a low limit and is not used for much else.

For some reason I'm not confident about Personal Computer Security with wireless routers. That's why I use the Bank Facilities. They are just a short walk away across the river and beside a real nice tool/Toy store.

Ok, so some of the tellers are good looking even if one can't remember why!:laughing:

 

[dmccarty]

I use debit card. If your mail is late getting the payment to them or someone at the cc company doesn't process the payment in time you could get hit with late fees

You use the mail to pay bills?

eBill baaaaabbbbbbbyyyyyyy. :laughing:

To be fair our electronic payment ain't all electronic since some does go by snail mail. Our cc payments are electronic though.

I have not missed a payment with eBilling.

Later,
Dan