Explain Debit Cards To Me - Again!

[Razors Edge ★]

Looks like credit cards are growing in this graph, but debit looks to grow even faster are a larger portion.  I still wonder what I am missing, since they seem like the worst of both world (cash & credit).  Still, it is good to see cash dropping further below 50% - even with the increased threshold.

Likewise, this is heartening as well:

“Major card issuers have made a big commitment this year to deliver contactless cards to their customers, so I think the more people are concerned about speed, the more they should be looking at either mobile payments or contactless cards,” Rossman said.

Mobile payments are also typically even more secure than chip-enabled credit cards because they usually require biometric authentication, such as a fingerprint or face scan.

[Longjohn ★]

I have used nothing but debit cards for a long time. You don’t have to carry cash and you don’t have to remember to pay it back, it’s done and you can forget about it. I used to forget to pay my credit card and they would add interest or even penalties. I don’t need that. My banker talked me into playing their credit card game a couple years ago. Use your card for $1000 in purchases in the next 90 days and they give you $200. I also got 3% rewards at the place of my choosing. I would sit in my car and pay off the charge I just made before going home. I only used the card for a month and then I took the money and ran. I really hate spending my time playing those games. Leave Mick do that, he enjoys it.

[Razors Edge ★]

14 minutes ago, Longjohn said:

Leave Mick do that, he enjoys it. 

He does have it down!

You can "autopay" most credit cards, so you never miss a payment.  And, as Mick often mentions, there are ways to make a CC really work.

[bikeman564™]

17 minutes ago, Longjohn said:

and you don’t have to remember to pay it back,

but you have to remember if you have sufficient funds in your checking account

[12string]

21 minutes ago, Longjohn said:

really hate spending my time playing those games.

That's why I use my credit card like I do.  In addition to purchases, I have a number of bills autopaid on my credit card.  At the end of the month, I pay one bill - the credit card.   Saves time, and I get money off the principal of my mortgage.

[shootingstar]

I'd rather not use debit. I don't want to mindlessly debit. CC disciplines me and abit of small cash for snacks, etc. 

[Further]

If you pay it off at the end of the month a credit card is free money. And offers more protection than debit.

I still like cash. Never had a dollar bill bounce.....But the times they are a changin.... 

[groupw]

I have a Visa/local bank debit card. We treat it like cash. We pay our bills the day after the check is deposited. WoW tells me how much we have in budget for groceries, fuel etc. We live within that. 

Our local bank has a better fraud protection system than most major cards. They have called us to verify we were not at a location where a suspicious activity was flagged while it was happening! If I have an issue, I call Cheryl. She takes care of it or works with us to resolve it. Been with them for 23 years. We don’t have any huge accounts, but they treat us like we do. I’m sticking with them. 

[ChrisL]

We use our debit card a lot and I rarely have cash on me. Even the parking kiosks at the beach take cards so we don’t have to feed the machines.  I do go in the store and pay for my gas as gas pumps are often targets of card skimmers. Fraud is a concern but the technology is better these days.

We rarely use CC’s & live off our income.

 

[sheep_herder ★]

Never used a debit card, just cc and cash.  Pay off the credit card monthly and all are due on the same day.

[Longjohn ★]

6 hours ago, bikeman564™ said:

but you have to remember if you have sufficient funds in your checking account

That hasn’t been a problem for years.

[shootingstar]

31 minutes ago, sheep_herder said:

Never used a debit card, just cc and cash.  Pay off the credit card monthly and all are due on the same day.

Pay off credit monthly also.  It's not a huge deal.

[bikeman564™]

8 hours ago, Longjohn said:

That hasn’t been a problem for years.

I don't keep lots in my checking. Its in savings.

[donkpow]

A debit card is a simple financial tool. Compared to a credit card, use ignores the time value of money. IOW, a credit card allows you to  make a purchase and still use your money to accumulate interest. Debit cards are more like cash. Make your purchase, transfer funds. Done. The trap for less disciplined individuals with credit cards is, of course, credit. The debit card protects those individuals from a lack of restraint.

[12string]

I rarely use cash or my debit card.  Only for small amounts.  Anything over about $10 goes on a cc.

Lately I've been using my phone instead of the debit card.  It's much safer.  

[Razors Edge ★]

41 minutes ago, 12string said:

I rarely use cash or my debit card.  Only for small amounts.  Anything over about $10 goes on a cc.

Lately I've been using my phone instead of the debit card.  It's much safer.   

Yep.

“Major card issuers have made a big commitment this year to deliver contactless cards to their customers, so I think the more people are concerned about speed, the more they should be looking at either mobile payments or contactless cards,” Rossman said.

Mobile payments are also typically even more secure than chip-enabled credit cards because they usually require biometric authentication, such as a fingerprint or face scan.