Debit cards poised to get much more expensive

LA Times ^ | June 25, 2011 | E. Scott Reckard

[radioone]

Debit cards, a gleam in bankers' eyes 30 years ago, have become the preferred method for people to tap their bank accounts, a free and easy alternative to paper checks, live tellers or cash machines.

U.S. shoppers used them 37 billion times last year, making them more popular than credit cards (19 billion transactions) and checks (18 billion), according to the payments newsletter Nilson Report. Another estimate puts the figure at 45 billion debits.

But big changes are afoot that could make it much more expensive for consumers to use the cards. And with concern rising over data breaches, some privacy advocates are recommending that shoppers return to cash or use credit cards, which provide better protection against fraud losses.

[E. Pluribus Unum]

As long as you pay off the balance every month (I pay mine off online every week), there is no practical difference between using a debit card or credit card.

I do use my debit card to get cash back when I shop because there are no ATM fees attached.

Can't do that with a credit card.

Whatever happens, one of my financial priorities is to make sure I never pay a single fee or interest charge to banks or credit card companies.

If I have to go to keeping my cash under the mattress instead of in a bank, so be it.

[SoldierDad]

Good thing we use our debit card as a credit card for purchases.

[lowbridge]

bump

[kingu]

I will only use a pin at a small business when making a purchase over $25, as they'll save money on the transaction ($24.30, actually, is the horizon point for many small businesses..)

It never ceases to amaze me how few business owners have actually calculated out when they save money for people using their cards as debit vs credit. Some discourage the use of debit by charging a fee to use a card as a debit, not realizing that they're probably giving the card processor an extra buck for using the card as a credit card.

Anywhere else, it is pure credit only. It gives me, as the consumer, the most protection, and the most benefits (I almost always use my paypal debit card, which gives 1% back to me each month for no fee, and directly debits my bank account.)

What drives me nuts is the stupid ID check. It offers zero protection to the business owner or employees from a charge back, it is against the agreement they signed with the credit card company, it is usually against all written policy for the store itself, and it distracts the checker from looking at the most important part of the transaction, the card itself, and verifying that the numbers on the card match the ones used for purchase - recoded cards are the most common form of theft.

I've seen (and then notified security) folks use recoded hotel keys as credit cards, and then happily hand over their fake ID to the checker while putting away their fake card, though very rarely is anything done about it. And I've shocked more than a few checkers by refusing to hand over something with my home address on it if I'm the only one in line, telling them they don't need to see it, and to call the manager if they want to refuse the transaction.

Only once has a checker actually called a manager, and the manager quickly apologized, and told the checker to stop checking ID for credit cards.

[TribalPrincess2U]

If the socialists keep getting their way—as in the healthcare fiasco, one day we will be required to have credit cards/debit cards, no checks (save the trees) and we will have to pay FEES for using the cards, esp. when people don’t carry a balance—we will have no choice.

They don’t make money off of paid balances.

Doing business on line using socialist mandated cards only.

Priceless!

[Gena Bukin]

Good thing we use our debit card as a credit card for purchases.

That's what I do. The only time I used my debit card as a debit card is if I need a little cash back and this isn't very often. I honestly can't remember the last time I used an ATM machine.

[SoldierDad]

What’s an ATM machine??? j/k

[max americana]

Always used cash. What pisses me off are these geniuses who can’t seem to figure out the swipe card system in front of the line and a good number of them look at the machine like it was something out of this world.

[GRRRRR]

I’ve about had it with all the stupid arse rules...

I got a letter yesterday from my bank saying I had violated some Fed Rule “D” by making electronic transfers out of my savings account to checking.

Guess what, you are not allowed to make any more than six on line banking transfers FROM checking to your other accounts per MONTH.

Supposedly, this prevents people from using their savings like a checking account...$10 for exceeding the limit. Aholes...I’m gonna get my $10 back. I have been doing on line banking for many years and NEVER heard of this rule. Turns out it was put in place in 2009...OBAMA strikes again.

FUBO

[Emperor Palpatine]

“So that no one can buy or sell unless he has the mark, that is, the name of the beast or the number of its name. This calls for wisdom: let the one who has understanding calculate the number of the beast, for it is the number of a man, and his number is 666.”

Revelation 13: 17-18

[hattend]

Yep, I get air miles if used as a credit card, I don’t if I use it as a debit.

[packrat35]

My credit union charges me $1.00 most times I use a debit card to pay for something if I use the pin number. But they charge nothing if I use it as credit instead.