Debit vs. Credit Cards

[nbking]

We use the Citibank Costco credit card for everything. Never use my debit card, except to get cash out of the ATMs.

 

[jyoutz]

In my opinion - Debit cards are used to access cash and cash only. There is zero benefit to purchasing anything with a debit card - it exposes the buyer to too much risk.

Theoretically probably. In practice I have been using debit cards for 30 years without any catastrophic problems.

 

[MossRoad]

AMEX !

You should know AMEX is the only major credit card company that requires merchants to sign a waver allowing AMEX to use the customers purchase history information for profit.
I wouldn't let my dog carry this card. And we banned it's use in protest at our business.

I gave up on American Express over 30 years ago. They kept sending my advertisements to join, then kept rejecting me.

At that point, it just felt like they wanted me to feel bad, so I quit applying. We get along fine without them. So as Bill the Cat would say....

 

[jyoutz]

We're seeing a lot of small businesses that do offer cash discount, AND some that ONLY accept cash. Especially restaurants.

I’m seeing the opposite. Many businesses discourage cash. Especially large businesses such as Walmart only have one or two check outs that take cash. And I have seen no small businesses that give cash discounts.

 

[MossRoad]

I’m seeing the opposite. Many businesses discourage cash. Especially large businesses such as Walmart only have one or two check outs that take cash. And I have seen no small businesses that give cash discounts.

I think it's mostly small businesses.

 

[Cougsfan]

From what I have seen, people with extremely poor financial habits use their credit cards and don't pay the balance at the end of the month. Equally bad are people who use a debit card with no money in the bank to back it up. People who have a little better, but still less than ideal, financial habits regularly use their debit cards within the limits of their finances (mostly young people seem to do this). The smartest way is to use a credit card with a high payback rate and religiously pay of the balance each month.

All this is easy to say for most of us whose income is greater than our minimal expenses for necessities, which unfortunately not always true for everyone.

 

[beowulf]

We use the most advantageous credit card we could find (regarding discounts, cash back etc. ). It was my understanding that debit cards were riskier than credit cards because your money was gone - and with credit cards you were not liable except perhaps for $50 if you delayed reporting an issue. I could be wrong about this, maybe things have changed.

I use a debit card only at ATMS at our bank or other no-fee ATMS. I did once consider using a debit card at certain gas stations - those that only took debit cards. The gas was cheaper per gallon but they charged a bit for using it. Anyway, I did the math, figured the cost using a debit card to get a less-per-gallon cost, added in the debit card fee, and compared all that with using my credit card which added to the cost per gallon, but gave me a percentage off of the cost. It was a wash. And credit card interest rates don't matter as we pay everything off each month - some don't and I guess that is how they subsidize the rewards we get on our cards.
We also get a number of other benefits with our credit card - extended warranties, replacement of things are lost, broken or stolen within a certain time frame. . . etc.

 

[NoTrespassing]

From what I have seen, people with extremely poor financial habits use their credit cards and don't pay the balance at the end of the month. Equally bad are people who use a debit card with no money in the bank to back it up. People who have a little better, but still less than ideal, financial habits regularly use their debit cards within the limits of their finances (mostly young people seem to do this). The smartest way is to use a credit card with a high payback rate and religiously pay of the balance each month.

All this is easy to say for most of us whose income is greater than our minimal expenses for necessities, which unfortunately not always true for everyone.

A lot of people consider things to be necessities that aren't truly necessary. I lived on minimum wage for a time. I lived in a crappy apartment in a dangerous part of town with two roommates in a one-bedroom apartment. I lived in the basement of an old house with an extension cord to the neighbors for electricity, no phone, no cable tv, no car, only a bicycle and bus for transportation and never took a government handout. Even now we live well below our means. Our household income is about 4 times our expenses.

 

[Cougsfan]

A lot of people consider things to be necessities that aren't truly necessary.

Ain't that the truth! It would be great if more people had the discipline to live within their means.

 

[Jstpssng]

I see businesses with minimum purchase amounts, usually ten dollars. Cash discounts on gas are up to a dime per gallon now. I get 2% rewards which offsets some of that.
The last restaurant I went to adds a 3% surcharge for using plastic. Had I known before I got to the register I would have left a bigger tip on the table, rather than putting some on the card. (Some for the government, some for the waiter...)

As I've stated in another discussion, if I have checks out and somebody scams my debit card it could get expensive... all of my payments go through my checking account. Sure I'll get it back but if my insurance cancels because I didn't know the money was gone...

I use 3 cards; one for my truck, one for my various garden and livestock costs, and one for general purposes. I also keep a $100 bill with me at all times.