Credit card or debit card?

[tjcletsgo]

What's the difference and why is it better to use a credit card?:o

 

Thanks!

 

Janie

[TLC535]

When using a debit card, the "holds" placed on your account can take time (in some cases a week or so) to be released by your bank....if you have plenty of $$$ in that account to cover bills or auto-drafts, no worries but if not your "real" money is being "held-up"....plus for us, we like the points or miles we get from using our credit card.

Edited March 10, 2015 by TLC535

[Thrak]

Just make your life easier and use a credit card. It's always advisable to let the card issuer know in advance that you will be traveling out of the country so they don't freeze the account thinking the charges are fraudulent. Also, make sure you understand that they may charge a 3% or so "out of country" fee on any transactions you make while traveling. Some cards don't charge the fee but many do. Getting a 1% bonus on charges isn't really that great when being charged 3%. :eek:

 

Note: I use my Discover card. There is no fee for using it out of the country.

Edited March 10, 2015 by Thrak

[tjcletsgo]

When using a debit card, the "holds" placed on your account can take time (in some cases a week or so) to be released by your bank....if you have plenty of $$$ in that account to cover bills or auto-drafts, no worries but if not your "real" money is being "held-up"....plus for us, we like the points or miles we get from using our credit card.

 

Thank you for this info! I use a debit card from my "travel account" and always notify my bank of my travels beforehand. If hold time is the only effect, I'll still use this method.;)

 

Thanks again!

 

Janie

[tjcletsgo]

Just make your life easier and use a credit card. It's always advisable to let the card issuer know in advance that you will be traveling out of the country so they don't freeze the account thinking the charges are fraudulent. Also, make sure you understand that they may charge a 3% or so "out of country" fee on any transactions you make while traveling. Some cards don't charge the fee but many do. Getting a 1% bonus on charges isn't really that great when being charged 3%. :eek:

 

Note: I use my Discover card. There is no fee for using it out of the country.

 

I use a credit union and they charge no fees at all.;)

[wobblybob74]

If you can, it's well worth 'gifting' yourself some OBC before you sail. That way, you start the cruise in credit and have a much smaller shock when that little bit of paper gets slipped under you door on the last night!

[tjcletsgo]

If you can, it's well worth 'gifting' yourself some OBC before you sail. That way, you start the cruise in credit and have a much smaller shock when that little bit of paper gets slipped under you door on the last night!

 

Great idea! I'll get it when I place my order for chocolate covered strawberries!:D

[hockeygal54]

I don't use my debit card for anything except ATM transactions @ the bank and depositing a check every now and then @ the bank. I'd much rather have someone try to use a CC fraudulently then empty out MY acct!

 

 

Sent from my iPhone using Forums mobile app

[JF - retired RRT]

Thank you for this info! I use a debit card from my "travel account" and always notify my bank of my travels beforehand. If hold time is the only effect, I'll still use this method.;)

 

Thanks again!

 

Janie

As Hockeygal pointed out...if a fraudulent charge is done it could empty your account.

If this happens with a credit card, federal law limits your liability to $50 and usually the credit card company reverses the charge immediately.

If this happens with a debit card, you have no protection from the fraudulent charge. Even if the bank decides you were not at fault, it can take a couple of weeks before you get your money back.

Edited March 10, 2015 by JF - retired RRT

[TLC535]

I don't use my debit card for anything except ATM transactions @ the bank and depositing a check every now and then @ the bank. I'd much rather have someone try to use a CC fraudulently then empty out MY acct!

 

 

Sent from my iPhone using Forums mobile app

 

As Hockeygal pointed out...if a fraudulent charge is done it could empty your account.

If this happens with a credit card, federal law limits your liability to $50 and usually the credit card company reverses the charge immediately.

If this happens with a debit card, you have no protection from the fraudulent charge. Even if the bank decides you were not at fault, it can take a couple of weeks before you get your money back.

 

Both very good points and so true, that didn't come to mind in my original post....we have been lucky when it comes to our bank accounts (knock wood:p) -but just 2 weeks ago my Citi credit card was some how duplicated (an actual card used) and a $550 charge @ Bloomingdales in Chicago hit my card (I live in SC...no I was not visiting there;))

I downloaded a fraudulent charge form & emailed it in after having my card cancelled & new reissued...two days later Citi removed the charge and are investigating....I doubt it would have been that easy with the bank....:rolleyes:

Edited March 10, 2015 by TLC535

[Orlando Vic]

1. The main reason to have at least one credit card is for emergencies. If you ever have an emergency where you need more money than you brought with you, you are protected. Of course, nobody ever expects an emergency, but they do happen. What if you had a medical emergency and your travelers insurance required you to pay first and then seek reimbursement after you paid the bill and returned home? What about weather related travel delays. Last winter and this winter as well, thousands of people were stranded in places like New York & Boston unable to get to their destinations. This also had a ripple effect across the nation and many travelers had to remain in place for several more days because their domestic and international connections were impacted. This means more $$$ for hotels, meals and rental cars. Although somewhat less likely, but still possible are summer weather-related delays.

2. Hotel & rental car deposits will be simply a hold against your credit limit. It won't (temporarily) deprive you of any cash saved for your trip. This could be several hundred dollars.

3. In case of a disputed charge on a transaction (i.e. rental car charges) you have more recourse (through the cc company) than if you simply paid cash or used a debit card. That kind of transaction is more final.

[Hawaiidan]

What's the difference and why is it better to use a credit card?:o

 

Thanks!

 

Janie

 

Debt cards were invented to benefit banks and increase the banks profit. They are unsafe to use in any out of country travel. The locking of funds, the lack of security and the zero benefit you get is more than enough reason to avoid them. Debt cards are how banks get you to give them a interest free loan and that they can use your money before and after you deposit it or charge it ( many times a merchant will not get payment from the bank for 45-60 days after they submit a bill(

 

Credit cards like Marriott and UAL through Chase have the following benefits that debt cards DO NOT. 1 they do not charge% for foreign transactions.

 

2 if you charge your trip on the card then you get $10,000 worth of trip insurance for no cost.

3. Credit cards have fraud and purchase protection... if someone uses your card, or a purchase product fails or you get cheated the credit card will reimburse you.

4. ( and this is huge) you get tangible miles or points to use for future hotel , cruise or air travel.

5. they are accepted world wide...............

DEBT CARDS DO NONE OF THESE

[cardqb]

We never use our debit card unless we are making a transaction at a local store and use our PIN on their pad. We keep the card in our possession at all times and don't give the number out to anyone.

 

Debit cards are a direct draw from your bank account and takes directly from your money. If the number is stolen or someone gets their hands into your account, they can take your money and it'll take a lot of steps to get it resolved and you will not have cash funds to live on until it is fixed.

 

Using a credit card is a buffer between the two, where you are protected and you can also float the charges for the one month billing cycle and also gain points or cash back.

 

No reason for us to be paying Princess OBC with our money ahead of time, why let them hold onto our money? We keep it in our own bank, not theirs. Pay the balance at the end of the cruise on our credit card, pay off the credit card when the bill is due several weeks later.

[Treven]

If you can, it's well worth 'gifting' yourself some OBC before you sail. That way, you start the cruise in credit and have a much smaller shock when that little bit of paper gets slipped under you door on the last night!

I always "pre-pay" just about my entire cruise by sending myself $500-750 between my final payment and departure. I will "generally" get a refund at the end of the cruise.

[mek]

i don't understand why people have debit cards. Why not just get a credit card and pay it off each month?

[sfken1977]

i don't understand why people have debit cards. Why not just get a credit card and pay it off each month?

 

Some people have a difficult time getting approved for credit.

 

My debit cards are fully protected just like a visa - I am not liable for any unauthorized transactions.

 

However - has been mentioned - I'll likely buy the All inclusive beverage package (and pre-pay for it) and then gift over some OBC for use while on the cruise. with the AIBP I should be covered; since I won't be doing any shopping or spa treatments on board.

[dmwnc1959]

This...

 

If you can, it's well worth 'gifting' yourself some OBC before you sail. That way, you start the cruise in credit and have a much smaller shock when that little bit of paper gets slipped under you door on the last night!

 

I always "pre-pay" just about my entire cruise by sending myself $500-750 between my final payment and departure. I will "generally" get a refund at the end of the cruise.

 

 

On my last three Princess cruises - a 7nt on Ruby Princess and a B2B on Royal Princess (different folios for each segment) - I used my debit card for the deposits, the same card for my final payments, my pre-purchased drink package, and purchased several hundred dollars in OBC as mentioned above by wobblybob and Treven. I made it perfectly clear to the people at check-in as well as those at the Guest Relations Desk that I had enough OBC to cover any and all expenses, and that my card on file was NOT to be charged or used for any daily pre-authorizations, as I had also pre-paid tips (which amounts to another OBC to your folio).

 

Never once was my debit card tapped by Princess Cruises for anything.

 

I only ever just got a credit card (after decades of not having them) this past October (I'm 55 years old), when during one visit to my bank they forced ;) me (gasp!) to sign up for a Chase Slate card. I did, and now it sits collecting dust in my wallet. I HATE credit cards, but figured "why the hell not just get one".

 

With that said, for my cruise coming up this December I'll follow the same format as I have in the past, which is the exact same as I have done with RCI and Celebrity Cruises, with the same results: using my debit card for everything.

 

:D

[caribill]

With that said, for my cruise coming up this December I'll follow the same format as I have in the past, which is the exact same as I have done with RCI and Celebrity Cruises, with the same results: using my debit card for everything.

 

 

On the ship, that will work perfectly fine.

 

Off the ship is when a debit card can be a problem if a less than honest person where you use it manages to capture enough information to make their own charges against your card.

 

With a credit card, you are protected from charges you did not make. You can challenge them when you get the statement and not pay a penny.

 

With a debit card, your bank account could be emptied while you are out of the country. Yes, you can probably get your money back once you return home, but you may not be able to use the card again until all is straightened out with your bank.

[dmwnc1959]

On the ship, that will work perfectly fine.

 

Off the ship is when a debit card can be a problem if a less than honest person where you use it manages to capture enough information to make their own charges against your card.

 

With a credit card, you are protected from charges you did not make. You can challenge them when you get the statement and not pay a penny.

 

With a debit card, your bank account could be emptied while you are out of the country. Yes, you can probably get your money back once you return home, but you may not be able to use the card again until all is straightened out with your bank.

 

 

In the seven cruises I've taken since 2010 not having a credit card, and still purchasing things while in the Caribbean, hasn't been a problem for me either. I rarely take shore excursions (if I do it's through the cruise line) and I'm not a big spender - I don't go off on cruises to buy lots of expensive exotic stuff (crap) I don't need or want, so using my Chase Bank Visa debit card at little gift shops from St. Martin to Nassau to Cozumel has worked for me without ever being victimized. Now, if I was traveling to Europe or Asia etc. I'd be more cautious, or recommend a credit card over a debit card, but so far, for me, no problems.

 

;)

[tjcletsgo]

On the ship, that will work perfectly fine.

 

Off the ship is when a debit card can be a problem if a less than honest person where you use it manages to capture enough information to make their own charges against your card.

 

With a credit card, you are protected from charges you did not make. You can challenge them when you get the statement and not pay a penny.

 

With a debit card, your bank account could be emptied while you are out of the country. Yes, you can probably get your money back once you return home, but you may not be able to use the card again until all is straightened out with your bank.

 

 

I use CASH ONLY off the ship! Always!:eek:

[jak378]

Debt cards were invented to benefit banks and increase the banks profit. They are unsafe to use in any out of country travel. The locking of funds, the lack of security and the zero benefit you get is more than enough reason to avoid them. Debt cards are how banks get you to give them a interest free loan and that they can use your money before and after you deposit it or charge it ( many times a merchant will not get payment from the bank for 45-60 days after they submit a bill(

 

Credit cards like Marriott and UAL through Chase have the following benefits that debt cards DO NOT. 1 they do not charge% for foreign transactions.

 

2 if you charge your trip on the card then you get $10,000 worth of trip insurance for no cost.

3. Credit cards have fraud and purchase protection... if someone uses your card, or a purchase product fails or you get cheated the credit card will reimburse you.

4. ( and this is huge) you get tangible miles or points to use for future hotel , cruise or air travel.

5. they are accepted world wide...............

DEBT CARDS DO NONE OF THESE

 

I would add that the Marriott affinity card, although it has a yearly charge, gives you a free 1 night stay on every anniversary of its issue that more than makes up for the annual charge. It also comes with a lot of bonus points when issued.

[Thrak]

i don't understand why people have debit cards. Why not just get a credit card and pay it off each month?

 

I have a credit card that I pay off each month. I also have a debit card. If I stick the credit card in the ATM there can be fees for a cash advance. If I stick the debit card in the ATM it just comes straight out of my checking account with no fees.

 

For cruising (and other travel as well) I use the credit card that gets paid off monthly. I really hate fees and interest. I won't even have a credit card with an annual fee attached.

[Aggie83]

Some people have a difficult time getting approved for credit.

 

My debit cards are fully protected just like a visa - I am not liable for any unauthorized transactions.

 

However - has been mentioned - I'll likely buy the All inclusive beverage package (and pre-pay for it) and then gift over some OBC for use while on the cruise. with the AIBP I should be covered; since I won't be doing any shopping or spa treatments on board.

 

Your financial institution's policy may be that you are not liable for any unathorized transactions. Credit cards provide you legal protection against unauthorized transactions and legally limit your potential liability. Debit cards are not governed by the same law as credit cards. Furthermore, debit cards provide a direct link to your bank account (cash), credit cards do not. Once someone gets your cash you have to then engage your bank to get the cash back, and that takes time. And if you are in a foreign country trying to sort things out, even more challenging.

Edited March 11, 2015 by Aggie83

[Aggie83]

I would add that the Marriott affinity card, although it has a yearly charge, gives you a free 1 night stay on every anniversary of its issue that more than makes up for the annual charge. It also comes with a lot of bonus points when issued.

 

Capital One issues cards with 0% foreign transaction fees and their exchange rate is quite good. They have cards with no annual fees or very low annual fees. Schwab also issues a 0% foreign transaction fee card.

Their ATM(debit) cards are a good, low fee option as well, especially when compared to the big banks like Bank of America.

[Potstech]

Have seen to many people get into financial trouble with debit cards and automatic payments from bank accounts. Before they knew it they were overdrawn and paying all sorts of late fees. Debit cards are just a way to get over extended fast.

I do not use debit cards or allow ANY automatic withdrawals from my bank accounts and tell the banks to never allow them. I also use cash whenever possible so far have not had a problem and have a great credit rating.