debit cards vs credit cards

[John Bull]

What you secure the card with is your credit limit. So if your limit is $500 and you charge $200 you get a statement at the end of the billing period. You will have a minimum you have to pay or you can pay the entire balance of what you charge. You get a bill just like a regular card. Month to month charges must be paid, they are not paid from the amount you secured the card with. Here are some of the top companies offering secured credit cards.

 

https://www.creditkarma.com/creditcards/explore?pubKey=RFSVDJ8NOUC11YT1&categoryID=3&pgsz=0&adposition=1t3

 

 

Sent from my iPhone using Forums mobile app

 

Thanks for that, Patti.

Out of interest I googled & added "UK".

Expected to find nothing.

Wrong.

Available in the UK too.

 

Yes, the card certainly has its place for folk in those circumstances.

Saw one or two negative comments about high interest rates (as in your post), but I'm guessing that's because exceeding the deposited money that secures it is a no-no. Lots of positive comments about the ability to re-build a credit rating.

 

The big problem I see with those cards goes back to the business of "holds". The card is for those with poor credit history, which in the main means folks with limited funds, For a period of a week or two at the end of the cruise there needs to be enough credit to cover both the sum spent on the on-board account and the daily amounts "held" in reserve. That's especially important when a balance is slim, and using cash rather than a card avoids that temporary double-whammy.

 

One thing I don't understand about holds.

In these days of instant electronic transfers, I see no reason why a hold can't automatically be released the very instant that the actual spend is deducted by the cruise line. That same delay applies to holds retained by hotels, car rental agencies, etc, so the fault appears to lie with the banks rather than the cruise lines.

Black mark to the banks?

 

JB :)

[sparks1093]

Thanks for that, Patti.

Out of interest I googled & added "UK".

Expected to find nothing.

Wrong.

Available in the UK too.

 

Yes, the card certainly has its place for folk in those circumstances.

Saw one or two negative comments about high interest rates (as in your post), but I'm guessing that's because exceeding the deposited money that secures it is a no-no. Lots of positive comments about the ability to re-build a credit rating.

 

The big problem I see with those cards goes back to the business of "holds". The card is for those with poor credit history, which in the main means folks with limited funds, For a period of a week or two at the end of the cruise there needs to be enough credit to cover both the sum spent on the on-board account and the daily amounts "held" in reserve. That's especially important when a balance is slim, and using cash rather than a card avoids that temporary double-whammy.

 

One thing I don't understand about holds.

In these days of instant electronic transfers, I see no reason why a hold can't automatically be released the very instant that the actual spend is deducted by the cruise line. That same delay applies to holds retained by hotels, car rental agencies, etc, so the fault appears to lie with the banks rather than the cruise lines.

Black mark to the banks?

 

JB :)

 

Just guessing here but I know the one time that I used a debit card the hold amount was different than the actual purchase amount and that may have caused a delay in the releasing of the hold. It seems likely that with a credit card the processing is done differently and if a merchant puts through a hold and then a final transaction this serves to release the previous hold. I do not know all of the whys and wherefores but this is what I've observed with my own cards.

[navybankerteacher]

 

...

 

One thing I don't understand about holds.

In these days of instant electronic transfers, I see no reason why a hold can't automatically be released the very instant that the actual spend is deducted by the cruise line. That same delay applies to holds retained by hotels, car rental agencies, etc, so the fault appears to lie with the banks rather than the cruise lines.

Black mark to the banks?

 

JB :)

 

Good question. One cause might be the nature of the hold - in the case of a credit card transaction the processing bank is essentially advancing its own funds to the line for the account of the card holder, (and earns the 2% or 3% discount which the cruise line "eats" as a cost of getting its payment) while in the case of a debit card the bank is working against the available balance in the card holder's account - and needs to be sure that the funds are there - and has to consider pending charges against the account. Granted, a day or so should be ample but human nature being what it is the banks like to take advantage of as much time as they can get away with.

[tbkb92]

My husband will not get a credit card for any reason so should I plan for us to use cash for our sail & sign? We had planned on using one of our debit cards a hold placed on it will not cause a problem for us but will it cause a problem with using our onboard account right away if we need/want to?

 

March 2017 will be our first time cruising and it seems the more I read the more confused about everything I get!

[FireStation46]

A credit card gives you much more protection against unauthorized charges than a debit card. Debit cards are like blank checks.

 

There are plenty of low interest and/or free to low fee credit cards.

 

Personally, I prefer AmEx. Great customer service, awesome fraud protection. If you dont want to carry a balance with intrest charges and pay off the bill upon arrival, AmEx is the way to go. I am not sure what the fee is for the basic card. My Gold Card is free for life due to my spend habits. I even put an entire cruise on my card and reap the benefits of their Membership Points program. If you dont cash in your points for a long time, the gifts or free cash cards you get for pointd is really awesome.

 

So, if you can lay out cash when the bill comes due, AmEx is the more secure route to go.

Edited May 9, 2016 by FireStation46

[luddite]

My husband will not get a credit card for any reason so should I plan for us to use cash for our sail & sign? We had planned on using one of our debit cards a hold placed on it will not cause a problem for us but will it cause a problem with using our onboard account right away if we need/want to?

 

March 2017 will be our first time cruising and it seems the more I read the more confused about everything I get!

 

See post #3 on this thread.

[Wanderista]

This thread and topic has been very helpful. I've avoided credit previously but decided to get a CC to use on my cruise. The only stressful part is that the arrival has been delayed due to the CC company employee on the phone during my application who messed up writing down my address correctly. I'm now rush delivering a re-issued card. I'm impatient about it because I need that before I can check into my cruise.

 

My advice is definitely to apply as soon as you can if you are planning on getting one. I did some research in order to decide on the card I wanted and then applied a month before the cruise. I ended up getting approved for a very nice one that I look forward to using whenever it arrives!

[Hlitner]

My husband will not get a credit card for any reason so should I plan for us to use cash for our sail & sign? We had planned on using one of our debit cards a hold placed on it will not cause a problem for us but will it cause a problem with using our onboard account right away if we need/want to?

 

March 2017 will be our first time cruising and it seems the more I read the more confused about everything I get!

 

If the cruise line accepts your debit card (not normally an issue) you will have immediate access to your onboard account :). That being said, it is becoming increasingly difficult to travel (especially internationally) without a major credit card. Certain basic travel functions such as renting a car can prove to be a hassle or not even possible without a major credit card (MC, Visa, AMEX). While some rental car agencies will accept debit cards....others will not. The other issue with Debit cards is that you do not have the same level of protection as with a credit card. And if there is an error with your debit card, you do not have the same recourse (i.e. dispute) mandated for credit cards. For those that are concerned with their own discipline with credit cards most will now let you set up auto payments where the balance is automatically paid (deducted directly from your bank account) every month. This guarantees you will never be late with a payment or incur any late charges. Kind of like the advantage of a debit card with the protections and versatility of a credit card.

 

Here is another example of the difference. Several years ago we paid for a cruise (with our AMEX) on Regency Cruise lines. A month before our cruise that company went bankrupt (Renaissance is another line that went bankrupt) and Regency had over $3000 or our money. A simple phone call to AMEX had that money credited back to my account the same day. With a Debit card we would have had to file a claim with the bankruptcy court and it would have taken years to get "some" or our money back. In our case AMEX was required (by law) to honor our "dispute" and quickly give us our money. We later signed a legal document giving AMEX the ability to try and collect the money through the bankruptcy process (their problem,,,,no longer ours).

 

Hank

Edited May 10, 2016 by Hlitner

[John Bull]

My husband will not get a credit card for any reason so should I plan for us to use cash for our sail & sign? We had planned on using one of our debit cards a hold placed on it will not cause a problem for us but will it cause a problem with using our onboard account right away if we need/want to?

 

March 2017 will be our first time cruising and it seems the more I read the more confused about everything I get!

 

Whether you register a card or deposit cash you can use your sail & sign card straight away.

 

Other than the hold (not a problem for you) I don't understand folks' worry about using a debit card for their sail & sign account with a reputable cruise line - there's no greater risk of fraud than using it at home, and if the cruise line goes belly-up while you're cruising with them the risk of losing the held money (errrr, is there any risk??) will be the least of your problems ;)

 

If your home currency is the same as ship's currency (eg you're an American on a US dollar ship), using cash is a perfectly reasonable alternative. The only down-sides are the need to carry that much more cash, and the need to go to Guest Relations to deposit cash at the beginning of the cruise, mebbe again to top-up, and again on the last evening to check-out by handing over / receiving the balance. The line on that last evening might be a little long & slow.

They might be accused of being dinosaurs ;) but plenty of folk use cash rather than card.

Cash isn't an economic way of dealing with it if your home currency isn't the same as ship's currency.

 

JB :)

[sparks1093]

Whether you register a card or deposit cash you can use your sail & sign card straight away.

 

Other than the hold (not a problem for you) I don't understand folks' worry about using a debit card for their sail & sign account with a reputable cruise line - there's no greater risk of fraud than using it at home, and if the cruise line goes belly-up while you're cruising with them the risk of losing the held money (errrr, is there any risk??) will be the least of your problems ;)

 

If your home currency is the same as ship's currency (eg you're an American on a US dollar ship), using cash is a perfectly reasonable alternative. The only down-sides are the need to carry that much more cash, and the need to go to Guest Relations to deposit cash at the beginning of the cruise, mebbe again to top-up, and again on the last evening to check-out by handing over / receiving the balance. The line on that last evening might be a little long & slow.

They might be accused of being dinosaurs ;) but plenty of folk use cash rather than card.

Cash isn't an economic way of dealing with it if your home currency isn't the same as ship's currency.

 

JB :)

 

As long as people fully understand the hold process and have enough funds to cover that plus the final bill it's not that much of a worry, but too many people do not fully understand how the holds work, how long they may last, or exactly how much they need in the account to cover everything. I have read numerous accounts of people being seriously overdrafted/overdrawn because of the hold not being released timely and it was something they did not plan on (many of them had bills being paid automatically which didn't help).

 

The biggest issue is that it's your actual money that is tied up in all of this instead of a credit card company's money and as stated if there is a dispute credit cards offer more protections. (And as for fraud I used my debit card to reserve our hotel in France last year through what I thought was a reputable company and within days my card was used in two locations in France to purchase clothing. I was lucky and my bank resolved this quickly and I now seriously limit how I use my debit card even more.)

[John Bull]

As long as people fully understand the hold process and have enough funds to cover that plus the final bill it's not that much of a worry, but too many people do not fully understand how the holds work, how long they may last, or exactly how much they need in the account to cover everything. I have read numerous accounts of people being seriously overdrafted/overdrawn because of the hold not being released timely and it was something they did not plan on (many of them had bills being paid automatically which didn't help).

 

The biggest issue is that it's your actual money that is tied up in all of this instead of a credit card company's money and as stated if there is a dispute credit cards offer more protections. (And as for fraud I used my debit card to reserve our hotel in France last year through what I thought was a reputable company and within days my card was used in two locations in France to purchase clothing. I was lucky and my bank resolved this quickly and I now seriously limit how I use my debit card even more.)

 

Won't disagree with any of that, Sparks. :)

 

But my reply was to tbkb, for whom a hold isn't a problem.

 

I've never had a problem with my debit card, but I only use it when a credit card involves a fee, and that only tends to be in my own country plus one UK-based cruise line.

 

The only (minor, & quickly-resolved) times my credit card has been compromised were in the US - a country where I shy away from using my debit card because of the absence of PIN security. Both involved gas purchases - because I don't have a US zipcode associated with my cards I had to lodge my card in the office before drawing fuel. Since then, if a gas pump won't accept my card I pay cash or drive to the next gas station.

 

JB :)

[sparks1093]

Won't disagree with any of that, Sparks. :)

 

But my reply was to tbkb, for whom a hold isn't a problem.

 

I've never had a problem with my debit card, but I only use it when a credit card involves a fee, and that only tends to be in my own country plus one UK-based cruise line.

 

The only (minor, & quickly-resolved) times my credit card has been compromised were in the US - a country where I shy away from using my debit card because of the absence of PIN security. Both involved gas purchases - because I don't have a US zipcode associated with my cards I had to lodge my card in the office before drawing fuel. Since then, if a gas pump won't accept my card I pay cash or drive to the next gas station.

 

JB :)

 

They say they don't have a problem with a hold. I said the same thing the last time I used my debit card;). I had twice the budgeted amount in my account and it wasn't enough, I still got overdrawn. The good thing was it only cost me $35 and the hold was released sometime before the first and second stop for gas so we had money for gas and food for the remainder of the trip home. (And my remarks were more in response to your comment "I don't understand folks' worry about using a debit card" and just adding my own two cents, I certainly don't disagree with what you've said.)

[Hlitner]

Not sure folks are aware of just how much credit hold is put on their account. One can simply call any cruise line and ask for this info. We know one major cruise line that puts on a $60 per person/day hold which means a couple on a short 14 day cruise the hold would be $1680! And on really long cruises (which we take several times a year) the hold can be multiple thousands of dollars. And assume that you simply go to rent a car for a single day (during your trip)......which can add another hold (sometimes in excess or $1000) dollars. Hotels also put on credit holds (when you check-in) which will often exceed $200 a night! This stuff adds up and many folks do not have very high credit limits or thousands of dollars in their checking (debit card) accounts.

 

One solution is AMEX...since their cards do not have a set credit limit. Another option is to simply call your Visa/MC issuing bank (or just call the number on the card) and ask to have your credit limit temporarily increased during your trip (if you have a good credit history this request will usually be quickly granted).

 

Hank

[navybankerteacher]

Not sure folks are aware of just how much credit hold is put on their account. One can simply call any cruise line and ask for this info. We know one major cruise line that puts on a $60 per person/day hold which means a couple on a short 14 day cruise the hold would be $1680! And on really long cruises (which we take several times a year) the hold can be multiple thousands of dollars. And assume that you simply go to rent a car for a single day (during your trip)......which can add another hold (sometimes in excess or $1000) dollars. Hotels also put on credit holds (when you check-in) which will often exceed $200 a night! This stuff adds up and many folks do not have very high credit limits or thousands of dollars in their checking (debit card) accounts.

 

One solution is AMEX...since their cards do not have a set credit limit. Another option is to simply call your Visa/MC issuing bank (or just call the number on the card) and ask to have your credit limit temporarily increased during your trip (if you have a good credit history this request will usually be quickly granted).

 

Hank

 

Best advice on this thread.

[navybankerteacher]

My husband will not get a credit card for any reason so should I plan for us to use cash for our sail & sign? We had planned on using one of our debit cards a hold placed on it will not cause a problem for us but will it cause a problem with using our onboard account right away if we need/want to?

 

March 2017 will be our first time cruising and it seems the more I read the more confused about everything I get!

 

You might suggest to him to review the posts on this thread (admittedly posted by anonymous amateurs, but still thought-provoking) and to educate himself generally on the differences between debit and credit cards. Frankly, refusing to use credit cards in the 21st century is, in some ways, comparable to refusing to travel on ships powered other than by sail.

[FireStation46]

You might suggest to him to review the posts on this thread (admittedly posted by anonymous amateurs, but still thought-provoking) and to educate himself generally on the differences between debit and credit cards. Frankly, refusing to use credit cards in the 21st century is, in some ways, comparable to refusing to travel on ships powered other than by sail.

 

Agreed!

 

No upside to a debit card vs. credit card

 

Caveat emptor

[joie1016]

I am a first time cruiser looking at the liberty ship out of Galveston. I read on the site where you use either a debit or credit card or cash for a "deposit" assuming u plan to charge stuff. My question is since they put a hold on the debit card which is what I will have to use....we have 2 adults and 2 kids....do they put the hold on it per person, per room, per adult or how does this work? I am trying to budget for everything so just trying to prepare. We plan on paying for cash whenever possible but read on the ship we would have to use either kind of card.

 

Thank you for any input:)

 

Debit cards are dangerous for travel. There is no protection behind it like a credit card. Credit cards are the only way to go !! Been traveling this way for 30 years and won't do it any other way .

[klfrodo]

 

The only (minor, & quickly-resolved) times my credit card has been compromised were in the US - a country where I shy away from using my debit card because of the absence of PIN security.

 

JB :)

 

We are now coming out of the dark ages with chip and pin technology.

All of my major credit cards, and my just received new debit card have chip and pin technology.

 

Most merchants have the new chip card readers. IO believe all merchants are required to have them by end of year.

[John Bull]

We are now coming out of the dark ages with chip and pin technology.

All of my major credit cards, and my just received new debit card have chip and pin technology.

 

Most merchants have the new chip card readers. IO believe all merchants are required to have them by end of year.

 

Good to hear.

Welcome to the 21st Century. ;)

 

Latest innovation this side of the Pond is contactless cards.

One step too far for me.

In theory you just flash your card past the POS terminal.

In practice someone with a reader who just brushes against you can upload your card details in the same way.:eek:

I'll sit that one out until the glitches & scams have been ironed out.;)

 

JB :)

[marub]

See post #3 on this thread.

 

I highly recommend purchasing a pre-paid credit card in whatever amount you anticipate. Most of my cruise clients do this with great success. DO NOT USE A DEBIT CARD for your sign & sail account.

[kitty9]

I highly recommend purchasing a pre-paid credit card in whatever amount you anticipate. Most of my cruise clients do this with great success. DO NOT USE A DEBIT CARD for your sign & sail account.

 

Most cruise lines will not accept a pre paid card, like the kind you purchase at a store or even at a bank, such as those Visa pre-paid cards, unless it has the person's name imprinted on it. It says the same on the cruise line's websites that I've ever seen.

Edited May 11, 2016 by kitty9

[navybankerteacher]

Most cruise lines will not accept a pre paid card, like the kind you purchase at a store or even at a bank, such as those Visa pre-paid cards, unless it has the person's name imprinted on it. It says the same on the cruise line's websites that I've ever seen.

 

Local banks will issue secured credit cards - which carry user's name - so instead of "buying" a one-time card, which is often not accepted, you have a credit card which remains good as long as the pledged account securing it is properly funded. Not only is it accepted like any other credit card, it's regular use (and timely payment) will help you re-establish your credit- the absence of which is what makes people think of pre-paid and secured cards, or of using dangerous debit cards in the first place.

[Roadrunner571]

You really really really need to use a credit card. Many many many problems come up with debit cards

 

Does this apply to charges incurred during the cruise?

 

When we arrive in Barcelona, which is the best(cheapest) way to get euros? We will be arriving in Barcelona on Sunday morning. Should you use a debit card with pin # at a ATM or do a cash advance on a credit card? Is it better to use a ATM at the airport vs away from airport? Does anyone know if the shuttles from airport to your hotel takes debit/credit cards or do you need cash to pay the driver? Is it better to get money converted to euro's at your bank before leaving the U.S. So many things to figure out ahead of time

[navybankerteacher]

You really really really need to use a credit card. Many many many problems come up with debit cards

 

Does this apply to charges incurred during the cruise?

 

When we arrive in Barcelona, which is the best(cheapest) way to get euros? We will be arriving in Barcelona on Sunday morning. Should you use a debit card with pin # at a ATM or do a cash advance on a credit card? Is it better to use a ATM at the airport vs away from airport? Does anyone know if the shuttles from airport to your hotel takes debit/credit cards or do you need cash to pay the driver? Is it better to get money converted to euro's at your bank before leaving the U.S. So many things to figure out ahead of time

 

Generally the best way to get euro in Spain is at bank owned ATM's (Santander, Bilbao, Sabadell among others) - using your bank's ATM (debit) card. You will get the best exchange rate with minimal fees. Using a credit card at an ATM generates fees as well as interest charges as it is treated as a loan.

 

There are plenty of bank owned ATM's easy to see at the airport - also everywhere in Barcelona, but it makes sense to get the euros at the airport to cover carfare into town and not have to look around in town.

[sparks1093]

Generally the best way to get euro in Spain is at bank owned ATM's (Santander, Bilbao, Sabadell among others) - using your bank's ATM (debit) card. You will get the best exchange rate with minimal fees. Using a credit card at an ATM generates fees as well as interest charges as it is treated as a loan.

 

There are plenty of bank owned ATM's easy to see at the airport - also everywhere in Barcelona, but it makes sense to get the euros at the airport to cover carfare into town and not have to look around in town.

 

One just has to be careful at the airport that it isn't a currency exchange ATM and that it is actually associated with a bank. I found this out the hard way last year in France and paid through the nose as a result.