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Thread: Which do you use more often: debit or credit card?

  1. #1
    SAINTSational Nica's Avatar Nica is offline
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    Which do you use more often: debit or credit card?

    Will debit cards outstrip credit?
    People still pull out the plastic, but often they're not charging anything. That leaves banks scrambling to make up the revenue they've lost from their more-profitable credit cards.


    Raquel Garcia is serious about avoiding debt. The 18-year-old customer-service representative for U-Haul recently canceled her credit card. Now she gets her entire paycheck deposited onto a prepaid debit card, which she uses for all her purchases.

    Because she can access only what's in the account, Garcia no longer worries about breaking her budget. "I'm spending just what I need," she says.

    For consumers reeling from a series of economic body blows, debit cards are increasingly becoming the plastic of choice.

    Some use the cards, which pull money directly from a bank or other account, as a budgeting tool to limit spending. Others embrace them out of necessity as banks clamp down on credit.

    All told, debit purchases are expected to climb 13% in 2008, to $1.2 trillion, according to The Nilson Report, an industry newsletter -- compared with a 3% rise, to $1.9 trillion, for credit card transactions. At Visa, the No. 1 card company, debit spending could surpass credit this year.

    Build credit without a credit card
    For the banks issuing the debit cards, the trend seems bittersweet. On the plus side, debit cards don't pose a threat to the banks' books like credit card accounts do (credit card losses are mounting as borrowers fall behind on payments). But the profits on debit cards aren't as plump because banks don't collect interest on them.

    Issuers largely make money from debit card fees, which pale next to those on credit cards. Retailers, for instance, fork over 1.6% of credit purchases to banks, three times the amount on debit transactions.
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    SAINTSational Nica's Avatar Nica is offline
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    But don't shed a tear for the banks just yet. Time and again they've shown an uncanny ability to adapt to a new profit landscape, and the debit card business appears no different.

    Consider the evolution of overdraft fees. It used to be that banks denied debit purchases when consumers didn't have enough money in their accounts. Now 14 of the 15 largest banks approve transactions but hit customers with a fee if they exceed the funds. It's not unlike getting charged for bouncing a check. A recent study by Bankrate.com found that overdraft fees now approach $29, up 3% in the past year.

    Those penalties are easier to trigger, too. In the past customers had up to a couple of days -- the time it takes for some debit transactions to clear -- to deposit cash. But now many banks hit them with fees as soon as purchases are made.

    "Banks have turned to this as a major source of revenue," says Jean Ann Fox, the director of financial services for advocacy group Consumer Federation of America.

    The practices have become so prevalent that the Federal Reserve has proposed rules that would rein in perceived abuses (see "When banks turn evil"). The banks argue that they provide a necessary service to consumers.

    "There's a balancing act to ensure folks who do need to occasionally go over the limit have (the protection) while having a deterrent in place for people who abuse it," says Doug Johnson, a policy adviser for the American Bankers Association, an industry group.

    Will debit cards outstrip credit? - MSN Money
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    Registered User iPicong's Avatar iPicong is offline
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    King Dutty is this your Nigerian investment pardna?
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    Hadha min fadhle Rabbi Juancito Trucupey's Avatar Juancito Trucupey is offline
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    I use debit. I have a debit card with a visa logo on it but that is about it

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    I breed Ank Panty Droppa's Avatar Panty Droppa is offline
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    Quote Originally Posted by Picong View Post
    King Dutty is this your Nigerian investment pardna?
    me, m. vick and plaxico opening up ah kennel, gun range and roti shop all in the same store front

    wha chu think bout that

  6. #6
    Registered User iPicong's Avatar iPicong is offline
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    Quote Originally Posted by King Dutty View Post
    me, m. vick and plaxico opening up ah kennel, gun range and roti shop all in the same store front

    wha chu think bout that
    Roti, guns, pitbulls.....yuh cah go wrong wit dat.......security system we could use my goggles to monitor d Nigerian known as Nica
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  7. #7
    Poca
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    I only use debit,

    I do not own a credit card, as a matter of fact i do not owe anyone anything.
    It feels really good not having monthly credit payments.

  8. #8
    .................... sweetredbutta's Avatar sweetredbutta is offline
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    Debit...............
    Tasty.......

  9. #9
    Dragon Singh IslandmixUSA's Avatar IslandmixUSA is offline
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    Debit for everyday use and credit for biz

  10. #10
    Sweetness4life Mrs. Yankee Doodle's Avatar Mrs. Yankee Doodle is offline
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    debit card for me...
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  11. #11
    THE BATTLE FOR EVERYTHING soca cowboy is offline
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    it takes good savings practices and acceptance by merchants at most places you shop, but I use credit cards for all my daily purchases + pay in full + earn rewards points for flight discounts and hotel discounts for carnival time

  12. #12
    Registered User Vincent Vega's Avatar Vincent Vega is offline
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    for deh essentials debit, everyting else, credit...cant remember deh last big purchase i made cash...
    "If you can blame yourself, the fix is pretty easy"

  13. #13
    $ CASH MONEY PROMOTIONS$ Dark & Lovely's Avatar Dark & Lovely is offline
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    Quote Originally Posted by Moderator View Post
    Debit for everyday use and credit for biz
    Ditto
    "TOO BLESSED TO BE STRESSED
    TOO ANNOINTED TO BE DISAPPOINTED"

  14. #14
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    L O S T .'s Avatar . is offline
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    dont use cc
    only debit

  15. #15
    T-MAKAA
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    Its easier at times to use debit. Credit you have to take time and sign, debit I could just put in a pin.

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