Credit Card Surprises!!

[Target]

Just thought I would let you guys in on a secret regarding check cards. You know, the credit cards that are attached to your checking account....

 

We use our check card constantly and our Island Princess cruise was no different. We had paid a bunch of bills before leaving and our checking account had about $200 in it. We used the Visa attached to our checking account for our shipboard account. I was getting my paycheck directly deposited on the day before disembarkation, so I wasn't concerned about cashing out our room. What I didn't realize (and I have to admit makes alot of sense) was that the purser's desk gets authorization for your room charges, etc. EACH NIGHT! Oops! In the case of our Visa, it held the funds in our checking account. My $200 wasn't going to cut it! We had excursions to pay for, etc. With my face red and my tail between my legs, I had to call my boss and ask him to advance my paycheck and then, to add insult to injury, asked him to deposit it into my bank account! Thank goodness he is a great boss and didn't mind, but it was a little embarrassing! But wait! It doesn't end there!

 

We went to check into the Princess Mt. McKinley Lodge for a one night stay we arranged ourselves (not through Princess) and we ran into a problem again! We had paid for the room in full before arriving. When we got there, we told them not to turn on our phone (assuming we wouldn't have to leave a deposit that way). They wanted to put a $200 hold on our Visa (which was there, but barely). I told her we didn't need to leave a credit card if we had paid in full already and didn't want the phone turned on (I used to work in a hotel and that was how Hilton did it!-I of course did not say this to the girl). She responded that they needed a $200 deposit in case we "put a hole in the wall." Can you believe that explanation? The manager came over and said the deposit was needed "in case we took the TV." Wow! I am sitting in Alaska, looking to steal a $200 TV (Which I plan on carrying back on the plane with me) and punch a hole in the wall...interesting...who do these people normally rent to anyway? I talked the manager into taking a $200 check, holding it, and returning it to me the next day. I insisted they seal it in an envelope before I left the counter to insure they didn't process it. A woman next to me at the counter ended up leaving without checking in because they insisted on taking a $300 deposit on her check card. She left before I came up with the check idea.

 

One more incident and then I will stop with my flow of information....We rented a car at Budget in the Anchorage airport before driving to Mt. McKinley (this is all at the END of our cruise). The counter person stated that because we were using a check card Visa, she was going to take an additional $100 on top of our rental amount. I asked her the reason for this and she stated that it was "in case we close out our checking account." I didn't think until later that I could close the account whether they took the extra $100 or not! If I was sure I could get a different rental, I would have gone elsewhere with my business. It is 9 days later, and I still have not seen my $100 refund in my checking account. I called three times over the last week and was told it had been processed. Yesterday, the girl admitted she didn't show it being processed (this only happened because I insisted she give me the authorization number of the credit) and processed it while I was on the phone. The previous two calls blamed my bank and said they were the slow ones.

 

I have learned that a regular credit card is the way to go when you travel. Then this all happens behind the scenes. I did not have a credit card to use on this trip, so my check card was it. It was nice not to come home to a bunch of credit card bills though!!

 

Just thought I would share...

Laura

[imsulin]

You are absolutely right, Laura! Bank debit cards usually have a daily charge limit, no matter how much you have in your checking account. Many car rental agencies will NOT take them...they want a credit card. I tried to warn clients that i booked on cruises/trips for years about them. Many times, clients would use them to make final payment, and the card wouldn't go through because of the daily charge limit. Then, I got a few irate clients screaming at ME because they had "$XXXXX dollars" in their checking account, and it was MY fault it wouldn't go through. I calmly advised them to please go scream to their bank...who was the agency setting the restrictions. You REALLY have to be careful about using those debit cards. You cannot take a cash advance from them on the ship, and the onboard ATM machines usually run out of money by the 2nd or 3rd day. Some bank/debit cards are attached to a line of credit, and operate much differently. Just because your bank card has a VISA or MC logo on it, that does NOT mean that it is a credit card.

[CruiseFever]

Debit/Check cards are our preferred form of payment but we, like you, learned the hard way to call our bank before we leave town and tell them we're going and have them raise or remove the daily cash advance limit.

[roe2ship]

I used this form of payment for my final payment and my shipboard account. When our final payment was due, my T/A called to tell me it was not going through which I had no idea why since I deposited the funds into the checking account one week prior to the final payment due date. I learned that day about the daily limit and I was only short $1.38.:rolleyes:

[KAJOKG]

I have learned that a regular credit card is the way to go when you travel.

Laura

 

Hotels, motels and rental car agencies add on an extra amount to credit cards too. These extra charges drop off after about 10 days. But, when traveling always be sure you have enough available credit to cover your charges plus the extra add ons.

[imsulin]

Chris - I do the same thing you do. I usually take a credit card as well, and call the CC company to advise them when and where I'm travelling, so that my charges aren't denied (due to the "stolen card" theory), and also call my bank to have the daily charge limit lifted and tied into my savings accounts as well...in addition to advising them of the travel info.

[Coral]

I used to be a debit card person but life got pretty difficult (calling the bank to raise the limit on withdraws and purchases).

 

I now do the credit card thing. My only consolation is that I now get miles for what I put on the credit card.

[bjboothman]

Yep, that's standard operating procedure for all rental car companies - don't single out Budget. I had "someone" put a hold on funds in my debit card account once and it caused my account to appear overdrawn. I rarely use them anymore.

 

I use one credit card, earn cash back, and pay it off in full each month. I charge everything from lunch, to gasoline, to groceries and clothing and have one check to write each month. Can someone tell me why they think debit cards are such a great thing? I think they are a big problem, as evidenced by your experience.

[meyerhaus]

I just wanted to let you know that I love your store!

 

http://www.ny-brownfields.com/Target_19%20copy.jpg

[jdecker2000]

"Can someone tell me why they think debit cards are such a great thing? I think they are a big problem, as evidenced by your experience."

 

I am like bjboothman, wondering that same thing. I am NOT afraid of things like online banking, automatic payments, etc. I write less than a dozen checks a year myself, would love to write NONE. BUT I have no intention of ever touching a debit card. Why not use a credit card and pay off monthly - we have saved over $7000 on 2 new cars that way - I for one am afraid of "instant" :eek: access to my checking account. (Plus I like the float :D !!)

[PeabodyNVL]

I never use to debit card to hold anything or use for hotel rooms, etc. I never give it out on internet or over the phone. I use it for one time purchases only...in person. Sure, most are insured now, but it is your cash and you don't want to have to possibly wait to get it back.

[elliair]

I got rid of that VISA/debit card attached to my checking account when my purse got stolen. The thieves went to the gas station and used it at the pump and then tied it in with the booze they purchased at the convenience store. Fortunately, I was able to stop all the credit cards, and I sent a letter to my credit card company (and called them) to cancel the cards due to theft. I did not have to pay for the charge and I was credited back what was taken. I charge everything on my American Express, and all my credit cards state on the back to ASK FOR ID. If you have the money in your banking account to cover the expenses you charge on your credit card, I don't see the advantage of leaving your checking account vulnerable to surprise charges. Credit cards paid off at time of billing is the only way to go.

[nho9504]

I frankly dont see what is the advantage to use a debit card when you can always pay your credit card bill in full each cycle and not incur a dime of financial charge ?

 

We have both debit cards and credit cards. The debit cards only serve 2 purposes.

 

1) to get petty cash from our bank's ATM. Our bank is Bank of America, which has branches virtually all over the country. Therefore, I can easily find an ATM to withdraw cash without a fee even when we are 3,000 miles away from home in the other coast.

 

2) to get local currency from ATM when we are travelling aboard. it works in all over the world - including Taihiti, Australia, New Zealand, all Europe, Asia including China (but there is a trick in Japan to use foreign check card at ATM - that is off topic here), whole North America (including Canada and Mexico). By far this is the most convenient, and least expensive way to obtain local currency. The ATM fee is usually between $2.00 to $3.00. The exchange rate is the most favorable multi-million bank to bank rate. Sure beats exchange USD or T-check at the exchange places which usually have a fee and less favorable rate.

 

We use credit card for everything, from daily life purchases such as groceries, gasoline, etc Pay phone bill, cable tv bill, any kind of bills that accept credit card. Needless to say, it is used for all travel related expenses. I literally wish ALL bills can be paid by credit card. Alas our electric company only accept bank payment.

 

We pay our credit card bill in full each cycle. Never incur a dime of financial charge in our lives.

 

I can see the charges online. I make payment electronically either thru my bank's bill pay feature, or I can choose to have my credit card company directly debit my bank account. The choice is mine to make. I have not written a check to credit card company for at least 6 years now ever since online bill pay is available. I think we use no more than 5 checks a year, mainly to pay car insurance and the maintenance fee of our condo complex.

 

Our credit card earns 5% cash rebate on purchases made at grocery store, gasoline station and drug store. 1% rebate on everything else.

 

It does not carry annual fee. (I used to have a mileage card that carries annual fee, but then for each dollar I charge, I get 1 mile back.)

 

I know of no debit card offers rebates.

 

All purchases are protected. It also offers rental car insurance though it is secondary to our own car insurance domestically. It is primary when we rent outside this country. It also offers travel accidence insurance if the ticket is paid by the card.

 

So, why use a debit card ?

[nho9504]

"Can someone tell me why they think debit cards are such a great thing? I think they are a big problem, as evidenced by your experience."

 

I am like bjboothman, wondering that same thing. I am NOT afraid of things like online banking, automatic payments, etc. I write less than a dozen checks a year myself, would love to write NONE. BUT I have no intention of ever touching a debit card. Why not use a credit card and pay off monthly - we have saved over $7000 on 2 new cars that way - I for one am afraid of "instant" :eek: access to my checking account. (Plus I like the float :D !!)

 

There is a law that has passed. I forgot the details. but the check will be cashed electronically and no more "float". it is being implemented gradually from region to region (the Federal Banking System). just so you know. Banks are supposedly to inform their clients about that because once it is implemented, those of us who want the cancelled checks back will no longer get it. (the actual cancelled check will not be available).

[nho9504]

Chris - I do the same thing you do. I usually take a credit card as well, and call the CC company to advise them when and where I'm travelling, so that my charges aren't denied (due to the "stolen card" theory), and also call my bank to have the daily charge limit lifted and tied into my savings accounts as well...in addition to advising them of the travel info.

 

We have never called our credit card company about our travel plans. We travel very often and at least out of the country once or twice a year to some far flung places. We never have our charges being denied. In the months when we are staying home, the charges are very hohum, such as groceries and eat-out. I believe the computer will profile the cardholder's charge pattern and once a pattern is established, only out of ordinary stuff would trigger a phone call.

 

One time our car was broken down when we were 1500 miles from home. The dealership in a small town was not honest. We decided to rent a U-Haul and towed our car back home. We drove non-stop and went thru 4 states, charging our humongous gas bills along the way. When we got home, there were 2 messages from our card company asked us to call back immediately. They wanted to know what happened ... I appreciate their concern.

 

Another time I had a computer customary built by a small shop and charged it. It was only $2000. The charge went thru without problem, but I got a phone call from the card company to verify it the following day.

[mringenoldus]

Just as a point of interest - USAA debit cards pay a % rebate every statement.

 

They are a terrific bank to work with but requires a military connection (self, spouse, parent etc.) to qualify.

[nho9504]

Just as a point of interest - USAA debit cards pay a % rebate every statement.

 

They are a terrific bank to work with but requires a military connection (self, spouse, parent etc.) to qualify.

 

I know of USAA insurance products, but unfortunately we dont qualify to use it. So that is useless to general public. :-(

[Target]

Thanks for all of your input! I would love to have the willpower to charge everything to a credit card and pay it off each month. Never had the discipline and don't expect it to develop overnight...:) My parents charge and pay each month, but I have one credit card and it is maxed. I do not want to get into that position with another credit card, so I use my debit card. We don't travel much, so I was definately caught off guard when we had these situations arise. I am educated now and if/when we travel like this again, I will have my credit card paid down and we will use that.

 

Again, thanks for the input!

Laura

[gopher's girl]

Most merchants that I have encountered and maybe the systems that back them up tend to mix up the debit/credit sides of the card. I just use a regular credit card that's not connected!

[CruiseFever]

I frankly dont see what is the advantage to use a debit card when you ...blah blah blah... why use a debit card ?

 

First, I don't want to be tempted to leave the balance and have to pay a finance charge. I have no debt and intend on keeping it that way. As a young man I had every credit card ever made, now I have two and never ever use them.

 

Also, the debit card I use for travel is a dedicated debit card meaning I fund it with the budgeted amount of money for each cruise. If I stay on budget I am just fine. If I go over budget I have to transfer funds into that account or use a credit card....a great big red flag that tells me something has gone awry. Believe me, I'm not sitting around counting pennies on cruises either, I budget realistically then stay to it.

 

The first cruise I provided operating cash for under this plan I failed miserably and started to believe the old saying "take twice as much cash and half the clothes" But I got better at budgeting and forecasting really fast and that's been both important and rewarding to ME.

 

Thanks to this plan I've been able to crusie 4 times this year rather than 3 just by watching expenses and staying on budget with the same annual travel expense as last year when we cruised 3 times.

 

It works for me.

 

It might not work for any other person on the planet, but it works for me.

 

Others might use debit cards because they either do not have credit cards or can not get them due to credit history problems.

 

Still others might use debit cards because they like the notion of the cruise being fully paid for before they get on the ship (I do too) and don't want to see that credit card statement a month later and don't want to write a check for it.

 

Plus, VISA or Mastercard check cards (debit cards with guts) carry the same protection as a regular VISA or Mastercard credit card.

 

I'll add also though that we've been using an American Express Travel Funds Card as yet another alternative payment method and had an easy time of it there too...no problems or "tricks" to learn to make it work right

 

Hope that helps

[CruiseFever]

Thanks for all of your input! I would love to have the willpower to charge everything to a credit card and pay it off each month. Never had the discipline and don't expect it to develop overnight...:) My parents charge and pay each month, but I have one credit card and it is maxed. I do not want to get into that position with another credit card, so I use my debit card. We don't travel much, so I was definately caught off guard when we had these situations arise. I am educated now and if/when we travel like this again, I will have my credit card paid down and we will use that.

 

Again, thanks for the input!

Laura

 

You are wise to realize this and take action in this area

[LARGIN]

By just using a debit card and not credit cards, and paying everything in cash, do you think this would have an effect on credit/FICO scores for those young people interested in purchasing their first home ??

[Target]

You are wise to realize this and take action in this area

Thanks Chris! Am I the only one with this problem??? It is just unfortunate that those who choose to use the debit card are put through these "hoops."

 

Laura

[CruiseFever]

Thanks Chris! Am I the only one with this problem??? It is just unfortunate that those who choose to use the debit card are put through these "hoops."

 

Laura

 

You are not alone and it's well worth the hoop jumping to be able to be solvent.

 

It really worries me when people talk about coming home to a huge credit card bill from their cruise that they'll be paying off for years.

[#1 IslandGirl]

I would certainly think twice before using a debit card, especfially if you have a LOC on your account.

 

 

If you ever need to dispute somehting it is REAL money that has been taken from you. You are more protected with a credit card.

 

Take a CC and leave the debit card home!!!

 

Kelly