Can we use a debit card instead of a credit card for our on-board account?

[Mr and Mrs A]

We have always tried to avoid consumer debt and we don't own any credit cards.  We do have Mastercard debit cards attached to our everyday bank accounts.  Debit cards have always been sufficient for us, ours have all the facilities of a Mastercard, Visa or Amex - we just prefer spending our own money rather than borrowing from the bank.

 

My understanding is that we will have to give our card details to be linked to our room account, so is it a practical option to use our debit cards?  Has anyone had experience of doing this?  Or should I bite the bullet and apply for a credit card?

 

Thanks all, Mrs A

[lissie]

If you are going to be travelling and want to rent a car or even check into some hotels you need a credit card - you can often put the actual charge on a debit card -but they want the guarantee of a credit card up front. So apply for one - its not debt unless you don't pay it off at the end of the month. Or  you could even pay it off as you go if that bothers you.  

 

I used a debit card on Cunard QE last year (twice - 2   cruises) - I was unclear whether it work in advance  -and in practice it worked fine. Both times we had bills of around US$900 or so. I was told not to use a debit card because I 'd end up with real holds against my real money  compared to a credit card where the hold is only againtst your credit limit. In practice Cunard just charged the card at varying intervals - probably depending on the a) balance and b) the lack of internet for them to get a connection - I was never charged more than I owed (and I kept an eye on it) 

 

I used a wise (wise.com) debit visa - highly recommend this card - the reason I use it anywhere I can overseas is because the forex rate is much, much better. Other's here will recommend cards with no international fees but they don't exist in Aotearoa  Wise is as good as it gets Wise Debit Card Review - MoneyHub NZ

[Mr and Mrs A]

57 minutes ago, lissie said:

If you are going to be travelling and want to rent a car or even check into some hotels you need a credit card - you can often put the actual charge on a debit card -but they want the guarantee of a credit card up front. So apply for one - its not debt unless you don't pay it off at the end of the month. Or  you could even pay it off as you go if that bothers you.  

 

I used a debit card on Cunard QE last year (twice - 2   cruises) - I was unclear whether it work in advance  -and in practice it worked fine. Both times we had bills of around US$900 or so. I was told not to use a debit card because I 'd end up with real holds against my real money  compared to a credit card where the hold is only againtst your credit limit. In practice Cunard just charged the card at varying intervals - probably depending on the a) balance and b) the lack of internet for them to get a connection - I was never charged more than I owed (and I kept an eye on it) 

 

I used a wise (wise.com) debit visa - highly recommend this card - the reason I use it anywhere I can overseas is because the forex rate is much, much better. Other's here will recommend cards with no international fees but they don't exist in Aotearoa  Wise is as good as it gets Wise Debit Card Review - MoneyHub NZ

 

Thanks Lissie - very helpful answer!

[MrsPeel55]

@lissie I may have a look at Wise. I know a Wise that is a money transfer agency, wondering if is the same company.  We usually pay of our credit cards before due date...

 

A different question on the same line of thought.... is it possible to pay on board with actual dollar bills? or does it have to go on a credit/debit cards? Anyone has any idea about this? should I make a separate post?

Edited June 13, 2023 by MrsPeel55
typos

[BigMac1953]

Yes. USD is acceptable and we do so every trip, especially if I've met Lady Luck.

 

The last day, any USD left gets paid in at the Purser's Desk.

 

DO NOT use any other currency if you can help it as they first change it to USD at a very poor rate.

[lissie]

42 minutes ago, MrsPeel55 said:

@lissie I may have a look at Wise. I know a Wise that is a money transfer agency, wondering if is the same company.  We usually pay of our credit cards before due date...

 

A different question on the same line of thought.... is it possible to pay on board with actual dollar bills? or does it have to go on a credit/debit cards? Anyone has any idea about this? should I make a separate post?

Yes Wise card also has the option to get foreign bank accounts - I use it to be paid in foriegn currencies. 

 

I suspect you do have to put  a  card down - but we ended up with extra US$ bills and were able to add it on to our account to reduce the final bill. I wouldn't use any other currency though because  they will use the ship's awful exchange rate. 

[ovccruiser]

I have used both debit and credit cards on cruises and have had no problem with either being accepted. In these modern times debit cards, which the funds come straight out of your bank account, is accepted in most countries as payment. I travel to Luxembourg and have paid by debit card and the funds taken from my account show in £'s within seconds of paying in Euros. 

 

The beauty with credit cards are if you want to make a sizeable purchase, jewellery etc, pay by credit card and when home easily transfer from your savings to pay the bill, saves having to hold large cash in the current account.

[MrsPeel55]

thanks so much, @BigMac1953 & @lissie

 

and yes, I know the currency is US$, we were told when we booked on the phone and read about it on My Cunard. We have dollars left from a previous trip, hence my question... I'm not sure what the exchange rate and fees will be with our bank, will have a look at that and then the Wise... 

By any chance any of you know names for those cards that have no international fees? 

[PORT ROYAL]

20 minutes ago, MrsPeel55 said:

We have Chase and Virgin Money.  Both “Fee Free”

 

Edited June 13, 2023 by PORT ROYAL
Predictive

[Winifred 22]

50 minutes ago, MrsPeel55 said:

thanks so much, @BigMac1953 & @lissie

 

and yes, I know the currency is US$, we were told when we booked on the phone and read about it on My Cunard. We have dollars left from a previous trip, hence my question... I'm not sure what the exchange rate and fees will be with our bank, will have a look at that and then the Wise... 

By any chance any of you know names for those cards that have no international fees? 

Nationwide credit or debit card have no fees or charges and exchange rates are very good too. Use my card abroad for the smallest of purchases and costs nothing. 

[MrsPeel55]

@PORT ROYAL @Winifred 22 thanks! 

 

will have a look at those 🙂

 

I ws gonna say we have a Nationwide very near us but I guess these days we apply for everything online?

Oh I keep feeling old !!!  LOL

[majortom10]

Never use my debit card for paying my account at end of cruise or for any purchases abroad. That is from advice given to me by a bank official at my bank.

[MrsPeel55]

6 minutes ago, majortom10 said:

Never use my debit card for paying my account at end of cruise or for any purchases abroad. That is from advice given to me by a bank official at my bank.

have they explained why not?

[majortom10]

1 minute ago, MrsPeel55 said:

have they explained why not?

Because credit cards are more secure and better protection especially if something goes wrong.

[MrsPeel55]

right, yeah, it makes sense , thanks!

[Winifred 22]

38 minutes ago, MrsPeel55 said:

@PORT ROYAL @Winifred 22 thanks! 

 

will have a look at those 🙂

 

I ws gonna say we have a Nationwide very near us but I guess these days we apply for everything online?

Oh I keep feeling old !!!  LOL

Yes I did mine online. I did have an old savings account so don’t think I had to do an in person ID check.  I opened a current and credit account purely for cruising. I only cruise with Cunard so having no charges or fees is useful for registering my card onboard. 

Edited June 13, 2023 by Winifred 22
Typo

[MrsPeel55]

56 minutes ago, Winifred 22 said:

Yes I did mine online. I did have an old savings account so don’t think I had to do an in person ID check.  I opened a current and credit account purely for cruising. I only cruise with Cunard so having no charges or fees is useful for registering my card onboard. 

thanks 🙂 

one of my credit cards is the kind that gives money back, so we usually use it and pay before the due date, but I m not sure what their fees and exchange rate are for US$, we just been to Seville, we had euros so almost didn't use it, but the exchange rate was ok, need to check fees... 

[D&N]

Another recommendation here for both Nationwide Credit Cards and Wise (previously Transferwise).

 

As French holiday home owners and more recently residents we've used our Nationwide cards for regular spend here for about 20 years. All our revenue is in £s and most of our spend in €s. On a daily basis the GBP:EUR rate we get from that can't be beaten. If the rate is unacceptable we switch to local cards in €.

 

We started using Wise in December 2014, initially with a small FX transfer to try them and since for all our FX transactions, including funds for buying property. We pick a day/time that the rate is beneficial. That ensures we have a fall back if the £ isn't doing well enough, and of course we need it for utility bills etc that must go through a French account.

 

Originally Nationwide cards were fee free in the VISA Europe area and we would have paid a small commission for spend in USD. I got a Wise card to cater for that and had loaded it at a beneficial rate in advance of our trip to US in 2020, which of course was cancelled.

 

In the last few years the fee for USD spend has been removed. The balance on the Wise card paid all the QM2 bills including drinks packages, good wines, photos, handbag & bear. They notified in real time when Cunard updated the authorisation amount. We ran down the balance on the Wise card in a subsequent visit to New York, paying the last few bills on the Nationwide card.

 

In New York, the hotel put a large authorisation on the Wise card. The main bill had already been paid and this was in case we had any extra stuff. That meant there was a load of cash on the card we couldn't spend. Switched the authorisation to the Nationwide card and problem solved. We were then able to spend it all on meals etc.  Our room in the Sofitel on W 44th was large and very comfortable but we had no intention of using it for anything other than sleeping and showering etc, nor using any of the hotel's other facilities.

 

I guess that last bit reinforces one of the benefits of credit over debit.

[MrsPeel55]

@D&N thanks, yes, no doubt about the advantages, if I have any doubts, surely I can see it clearly.

I use the Wise money transfer when I want to send gifts to my nieces, nephews and Goddaughters, never too much and they beat the PayPal until PayPal removed the fees, will have a look at their cards.

Got friends who bank with Nationwide who love it, will have a look for sure 🙂

[lissie]

3 hours ago, majortom10 said:

Because credit cards are more secure and better protection especially if something goes wrong.

Not true for New Zealanders so long as there is Mastercard or Visa symbol on the card the max liability is $50. Wise is very good because the app alerts you as soon as it's used - my bank takes 24 hours sometimes 

[lissie]

6 hours ago, MrsPeel55 said:

thanks so much, @BigMac1953 & @lissie

 

and yes, I know the currency is US$, we were told when we booked on the phone and read about it on My Cunard. We have dollars left from a previous trip, hence my question... I'm not sure what the exchange rate and fees will be with our bank, will have a look at that and then the Wise... 

By any chance any of you know names for those cards that have no international fees? 

There aren't any for NZers like the OP and me - the UK may have some 

[lissie]

2 hours ago, D&N said:

 

In New York, the hotel put a large authorisation on the Wise card. The main bill had already been paid and this was in case we had any extra stuff. That meant there was a load of cash on the card we couldn't spend. Switched the authorisation to the Nationwide card and problem solved. We were then able to spend it all on meals etc.  Our room in the Sofitel on W 44th was large and very comfortable but we had no intention of using it for anything other than sleeping and showering etc, nor using any of the hotel's other facilities.

 

I guess that last bit reinforces one of the benefits of credit over debit.

And  THAT is exactly why I always use a credit card for hotel guarantees even if I end up paying (or in fact have prepaid) using my Wise card. 

 

And yes we play the exchange rate timing game too - can make a difference with a volatile currency like NZ$ 

[majortom10]

8 minutes ago, lissie said:

Not true for New Zealanders so long as there is Mastercard or Visa symbol on the card the max liability is $50. Wise is very good because the app alerts you as soon as it's used - my bank takes 24 hours sometimes 

I cannot speak for New Zealand only the UK and you have more protection by using credit card than debit card by what is commonly known as Section 75.

Edited June 13, 2023 by majortom10

[lissie]

1 hour ago, majortom10 said:

I cannot speak for New Zealand only the UK and you have more protection by using credit card than debit card by what is commonly known as Section 75.

Actually I was wrong- they've got rid of the $50 liability it's now zero 

Credit & Debit Card Protection | Mastercard Zero Liability Protection 

 

Ans specifically for the Wise card - because it's not issued in NZ Wise-Customer Agreement - TransferWise.com section 21.6 - maximum losst is GBP35 

Edited June 13, 2023 by lissie

[elmsliebev]

18 hours ago, MrsPeel55 said:

thanks so much, @BigMac1953 & @lissie

 

and yes, I know the currency is US$, we were told when we booked on the phone and read about it on My Cunard. We have dollars left from a previous trip, hence my question... I'm not sure what the exchange rate and fees will be with our bank, will have a look at that and then the Wise... 

By any chance any of you know names for those cards that have no international fees? 

another vote for Nationwide (their travel insurance with the Flexplus account is excellent too) but I've recently taken out a Halifax Clarity credit card which was recommended here and on Moneysaving Expert as my holiday credit card.