Credit or Debit card.

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Credit or Debit card.

Postby boukra » Wed Mar 25, 2009 1:13 pm

During recent discussion with my Lloyds TSB bank manager about other matters, the subject of buying goods on-line came up, specifically the supposed safeguard of using a credit card for expensive purchases and the convenience of a debit card for less expensive items.

Almost conspiringly, or as he put it, " Between you and me " he stated that he would never use his bank debit card on-line and used a credit card always. His reasoning was that if anything fraudulent occurred with a debit card transaction all my banking services would be compromised for a period. He assured me that although I would be reimbursed for any loss eventually, it could be a "right pain in the arse." If anything similar happened with a credit card however, it would be a problem completely separate from my bank.

I am now in a quandary about what card to use for further purchases of cheap tobacco and viagra. If you read the warnings on the cig packets you will realise the two are not completely unrelated.
Anyway, did I receive words of wisdom or was it bullshit?

As a first time poster I have lurked around the forums long enough to know my rite of passage is to receive a good kicking. I have tried to minimise this by carefully checking my speeling, choosing a fairly innocuous topic, avoiding tales of speeding in my merc, or asking for help with my journalism course.

So ok, it's not about Glasgow, but I promise my next post will be a full critique of the Kellor-Mann building.
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Re: Credit or Debit card.

Postby Bing Buzby » Wed Mar 25, 2009 1:54 pm

The bank manager is dead right. The safeguards against fraud on a debit card are almost non-existent compared to a credit card.

A friend of mine got his bank account cleaned out by a lapdancing club in Latvia, they put multiple transactions of about £2.5K through the POS system, until the account was dry. He didn't get a brass razoo back from the bank. It turned into a painful lesson about using a debit card, whilst drunk and abroad.

When discussing this with the bank they were quite frank in telling him, had it been on his credit card, the conversation they would be having would have been entirely different.

In short, when you use a credit card, you are paying with the banks money, with a debit card it's your own money. When transactions go wrong, it is better that it is the banks money that is being argued about, not yours.
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Re: Credit or Debit card.

Postby Dot » Wed Mar 25, 2009 3:06 pm

I am glad this topic was posted.
I don't have a debit card but I do have a credit card. Do many on HG forums use debit cards?

Last year when we were over in England I had my card details stolen and three transactions were made to
purchase various goods and services. I knew nothing about it till I got home but the matter was sorted quickly.
I think I just had to sign a statement to say the transactions were not made by me and then I was issued with
new card and old one cancelled.

A few years ago my husband tried to buy something over the internet but it never arrived.
After a few phone calls he discovered that the company in question was being investigated by Trading Standards.
He never got the item but at least no money was lost as was the case for others who had paid by cheque.

My bank has asked me in the past if I wanted a debit card but so far I have always refused the offer.
I buy most things by cash or credit card for larger amounts and once in a blue moon I use a cheque.
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Re: Credit or Debit card.

Postby crusty_bint » Wed Mar 25, 2009 4:45 pm

Always use a credit card for online purchases, and any big (well, say over £50) cash purchases. Anything purchased with a credit card is protected by the credit card company meaning that if anything is faulty or defective, or even if you just want to return it, then you can, no questions asked and no need for an explanation. With online purchases, if you are unlucky enough to be victim to fraud or id theft then again you are protected by the credit card company.

Paying with a debit card is like paying with cash, meaning you have little recourse when something goes wrong.
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Re: Credit or Debit card.

Postby BrigitDoon » Wed Mar 25, 2009 5:24 pm

I don't have a credit card. I use a debit card and the account to which it relates only carries sufficient funds to meet the expenses of the week ahead.
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Re: Credit or Debit card.

Postby viceroy » Wed Mar 25, 2009 6:37 pm

I use my debit card for everyday things like groceries - the sort of things I used to pay cash for. My credit card is only ever used for online purchases. I also still use cheques occasionally, mainly for larger one-off items, although I also use them to pay the Kleeneze man whenever I buy anything out of his catalogue.
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Re: Credit or Debit card.

Postby boukra » Thu Mar 26, 2009 7:51 am

Thanks to all who responded. I am now convinced. It's credit card every time. It's something I had never even thought about. The minor inconvenience of waiting for a credit card statement etc. now seems a small price to pay. And well done to my bank manager for not blindly advising me to use one of his own bank services.
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Re: Credit or Debit card.

Postby Roxburgh » Thu Mar 26, 2009 2:14 pm

boukra wrote:Thanks to all who responded. I am now convinced. It's credit card every time. It's something I had never even thought about. The minor inconvenience of waiting for a credit card statement etc. now seems a small price to pay. And well done to my bank manager for not blindly advising me to use one of his own bank services.


I manage my credit card online. Works very well and no waiting for that statement. But ....... make sure you pay it off every month. Credit card debt is the most expensive round.
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Re: Credit or Debit card.

Postby tobester » Thu Mar 26, 2009 6:45 pm

I usually tend to use my credit card when buying online as i know any problems im protected. Most people would have learned this after farepak's collapse as the only people who got their money back in full was thos who paid by CC.

I do use paypal for ebay too, but its a verified account.
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Re: Credit or Debit card.

Postby Bing Buzby » Thu Mar 26, 2009 8:57 pm

tobester wrote:I do use paypal for ebay too, but its a verified account.


That's a good point, is their a compelling reason to verify a Pay Pal account? I fund my PP account with a credit card as I was unwilling to let PP get its hooks into my bank account. As far as I am aware verification removes transaction limits, which strikes me as a bad idea unless you are in the habit of buying cars and yachts on eBay.

Does verification have any benefit worth the risk, that I am missing?


And this really does have nothing to do with Glasgow Chat, but I am sure Boukra can be forgiven for that :-)
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Re: Credit or Debit card.

Postby Dot » Fri Jul 02, 2010 8:31 pm

Since this post started I now have a debit card.
I never actually asked for it but bank sent me a combined cash/debit card in last month or so.
Now that so few places take cheques I find this quite useful.

I read an article today to say that credit card companies can no longer bombard people with unwanted
blank cheques.
It would seem that many people don't know that purchases made with cheques don't carry same
protection as credit card purchases. Also the handling fees can be quite hefty.
Credit card companies can now send out a maximum of three cheques at a time - and only if customer
requests them.

Did anyone on here ever receive these cheques?
I have had them but always tore them up or shredded them.
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Re: Credit or Debit card.

Postby Avenger » Mon Jul 05, 2010 10:51 pm

I use a credit card for most purchases, similar to others, mainly because of the security if something goes wrong, booked a holiday with it once, statement came in with the minimum payment and a caption saying that if you pay the minimum, the estimated interest next month will be higher than the amount you've just paid! No wonder people get trapped in debt.
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Re: Credit card.

Postby Dot » Tue Feb 08, 2011 6:45 pm

Was reading an article about a man who got into debt while at Univeristy and then got a consolidation
loan to pay off the £15,000 he had amassed.

The article then went on to tell you various things that credit card providers don't want people to know.
I thought they were interesting points.
1. If card provider contacts you to say rate you pay is rising you can say "no".
You then have option to pay off debt there and then or if you have a good record of meeting payments
they may let you keep card and pay it off at existing rate.
2. You can lower APR just by asking. The better your credit score and payment history the better your chances.
Have some low rate credit card offers in hand when you call.
3. You can get rid of additional fees which include transfer fees and late charges.
Have tried this one myself one time when there was a postal strike and it worked. No late fee charges.

Perhaps a lot of you knew this stuff already but I only knew the last point.
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Re: Credit or Debit card.

Postby Doorstop » Tue Feb 08, 2011 6:55 pm

Thank Christ I'm credit free.

The thing about the right to refuse a hike in CC payments is the same for companies who put up your direct debit payments I believe.

You are fully within your rights to insist the payment stays the same as initially authorised.
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Re: Credit or Debit card.

Postby hungryjoe » Tue Feb 08, 2011 7:17 pm

I too am debt free, but since the collapse of Globespan, I use my credit card for everything. I had a foreign holiday, just about the time of Globespan's collapse, and was acutely aware that the only people who got their money back were those who paid by credit card.
I too, now manage my current account and my credit cards online - it's a doddle, and I'm NEVER late with my payments now, so no interest charges at all.
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