"I'm never shopping THERE again!" Share your story!

[Diane AKA Traska]

As a bank employee, I agree with everything about about credit card vs. debit card.  I encourage everybody to use a credit card and just pay it off at the end.  Besides what was already mentioned, a merchant can also put a hold on your funds (anywhere from one dollar, to hundreds of dollars) and you can't use your own money until the hold expires.  The hold can still be there even after the real payment is paid.  The bank can't help you since it's the merchant putting the hold on, not the bank. 

To be on topic, explaining a hold hurt many a customers' brains.

The problem is, for some of us, the debit card is the only credit card we can get.

[Amanita]

Yeah, I have a friend who can't get a credit card at all- she wants one with a low limit for online purchases, but can't get approved because she has no credit history and "doesn't make enough". And I have another friend who refuses to use credit cards at all, believing that credit card companies are all up to no good and looking to shaft people, even those who pay their bills off in full every month. She refuses to pay as much as a cent in interest, even to the extent of refusing student loans.

There's plenty of people out there who can't get credit cards, or who don't believe in them.

[Virg]

Diane AKA Traska wrote:

"The problem is, for some of us, the debit card is the only credit card we can get."

Get a secured card.  It's limited to the amount of money you pay in to start, but there's no issue with credit rating because the balance is secured, and if it's stolen, you still don't have to worry that your bank account will get drained out.  For online pruchases with a low limit, it's a very reasonable answer.  Also, since it's secured, there can be no billing trickery, and no interest charges.

Virg

[ica171]

Agree with Morticia, but in any case I'd definitely warn the credit card company that you did NOT authorize any charges beyond the initial $10.00.

At the very least the CC company should have some policy that allows you to unauthorize any charges by a specific company. The problem with this is many shady companies use several different company codes so if one doesn't work, they run it through with another.  This is one of the reasons why stop pays on e-checks can be so difficult.  The processes are similar, so I'd definitely be keeping an eye on it.

I'll have to check with my bank, since I used my debit card for the initial payment.  I very rarely use credit for anything, I like to pay as I go.

I used to do that as well, until the time that my debit card number got stolen.  If your CC number gets stolen, you're out that amount of credit until it gets fixed.  When your debit card number gets stolen, you're out that amount of cash.  Thankfully my bank took quick action on it, but ever since then I use a CC when I make online purchases, just to not have to worry about my bank account getting drained.

That's exactly why I never use my debit card online either. I was trying to explain this logic to a friend, but they just weren't getting it. They kep saying but the bank will give you the money back. Well, yes, but maybe not right away, whereas a cc company will simply "suspend" the charge until they investigate, and you're not responsible for paying it. And if someone did steal your number, in the end, you shouldn't be responsible for the charge.

Just like to me, if someone gets a hold of your credit card #, and uses it, yes, its identify theft, but to me, its not as serious as someone getting ahold of ALL your personal info, SS#, etc. and opening accounts, pretending to be you.  If someone gets your card, you can just call the cc company, cancel the card, and let them take it from there.  With your entire identity, from what I understand, its much more difficult to prove you didn't open those accounts, and get them taken off your credit report.

Actually, a bank has five days to issue a temporary credit if you say that a debit charge is fraudulent. Then they will conduct an investigation within a longer specified amount of time (maybe 60 days, I'm not sure on that one) and decide whether or not the charge is fraudulent. We went through that twice; once our actual debit card was stolen and once the number was stolen. No issues getting our money back either time.

[Outdoor Girl]

Diane AKA Traska wrote:

"The problem is, for some of us, the debit card is the only credit card we can get."

Get a secured card.  It's limited to the amount of money you pay in to start, but there's no issue with credit rating because the balance is secured, and if it's stolen, you still don't have to worry that your bank account will get drained out.  For online pruchases with a low limit, it's a very reasonable answer.  Also, since it's secured, there can be no billing trickery, and no interest charges.

Virg

Is that the same as a pre-paid credit card?  Because that's what I was going to suggest.  And that way, they can't scam you for very much money because once the balance on the card is gone, you can't get blood from a stone.   

[Diane AKA Traska]

Diane AKA Traska wrote:

"The problem is, for some of us, the debit card is the only credit card we can get."

Get a secured card.  It's limited to the amount of money you pay in to start, but there's no issue with credit rating because the balance is secured, and if it's stolen, you still don't have to worry that your bank account will get drained out.  For online pruchases with a low limit, it's a very reasonable answer.  Also, since it's secured, there can be no billing trickery, and no interest charges.

Virg

Is that the same as a pre-paid credit card?  Because that's what I was going to suggest.  And that way, they can't scam you for very much money because once the balance on the card is gone, you can't get blood from a stone.   

As it turns out, however, they can turn you down for one.

[Yvaine]

Diane AKA Traska wrote:

"The problem is, for some of us, the debit card is the only credit card we can get."

Get a secured card.  It's limited to the amount of money you pay in to start, but there's no issue with credit rating because the balance is secured, and if it's stolen, you still don't have to worry that your bank account will get drained out.  For online pruchases with a low limit, it's a very reasonable answer.  Also, since it's secured, there can be no billing trickery, and no interest charges.

Virg

Is that the same as a pre-paid credit card?  Because that's what I was going to suggest.  And that way, they can't scam you for very much money because once the balance on the card is gone, you can't get blood from a stone.   

As it turns out, however, they can turn you down for one.

And some of the companies who issue them are skeezy. I kind of suspect them by default until I hear otherwise!

[Outdoor Girl]

Really?  Even if you have cash in hand and say, 'Give me this $400 on a prepaid credit card'?

That's just dumb (on the part of the bank).

I had a friend who was going to be living apart from her husband for a number of months for work.  She needed a credit card so she could put work purchases on it and keep them separate from her personal purchases.  Even though she'd been the one to do all the family finances, everything was in her husband's name.  The banks wouldn't give her a credit card.  She ended up getting a store card that had a gas station for a very low amount, like $500 available credit.  She had to make payments several times a month to keep the balance low enough on the months she did a lot of driving.  But after about 6 months, her limit was raised and she was able to get a regular bank credit card in her name.

In my last year of university, I was able to get a low balance credit card.  Best thing I ever did.  I was disciplined enough to pay it off each month and it let me start building a credit score.

[Virg]

Outdoor Girl wrote:

"Is that the same as a pre-paid credit card?  Because that's what I was going to suggest.  And that way, they can't scam you for very much money because once the balance on the card is gone, you can't get blood from a stone."

It is, but the idea of "once the money is gone" doesn't directly fit with how a secured card works.  It's not like a prepaid debit card or gift card, where you put money in and then spend it out.  The amount you pay in is held as a deposit and that amount becomes your credit limit.  Then the company treats billing exactly like a credit card.  You charge stuff, they send you a bill, you pay it.  If you default on your payments, they can take it out of your deposit, so there's no need for creditworthiness checks to get one, and most companies that issue secured cards will release the deposit (turning the card into a standard credit card) after some span good payment behavior, so it's a good way for someone without credit history to create that history.  In any case, if you pay the balance on time there's never any interest to pay and there are plenty of companies that will issue a secured card with no fees, so you get a card to use that isn't directly tied to your bank account.

Virg

[Outdoor Girl]

Gotcha.  I don't know if those are available here; I've never needed one so I haven't looked into it.

[nuit93]

Outdoor Girl wrote:

"Is that the same as a pre-paid credit card?  Because that's what I was going to suggest.  And that way, they can't scam you for very much money because once the balance on the card is gone, you can't get blood from a stone."

It is, but the idea of "once the money is gone" doesn't directly fit with how a secured card works.  It's not like a prepaid debit card or gift card, where you put money in and then spend it out.  The amount you pay in is held as a deposit and that amount becomes your credit limit.  Then the company treats billing exactly like a credit card.  You charge stuff, they send you a bill, you pay it.  If you default on your payments, they can take it out of your deposit, so there's no need for creditworthiness checks to get one, and most companies that issue secured cards will release the deposit (turning the card into a standard credit card) after some span good payment behavior, so it's a good way for someone without credit history to create that history.  In any case, if you pay the balance on time there's never any interest to pay and there are plenty of companies that will issue a secured card with no fees, so you get a card to use that isn't directly tied to your bank account.

Virg

Yep, my first credit card was a secured card (got it at 18, possibly a bit sooner--it's been awhile!) and it worked just like this.

[DottyG]

We're veering really off-topic here, and I'm sorry to keep that up.  But there is something I wanted to add about online purchases and credit cards.

My Discover card allows me to get a temporary number for an online purchase.  It's just used for that merchant, and it prevents you from having to actually type in your real number.  This is a good safeguard against someone's getting into your real account - and it also is a way to see, if someone does try to do something nefarious with your number - which merchant was the cause of it.

I love Discover.  They're the ones who noticed "me" using my card in a place I shouldn't have been and alerted me to it immediately - right after they put a hold on the account to stop the person.  I was saved a lot of hassle and headache from them recently.

[bansidhe]

I'll have to check with my bank, since I used my debit card for the initial payment.  I very rarely use credit for anything, I like to pay as I go.

I used to do that as well, until the time that my debit card number got stolen.  If your CC number gets stolen, you're out that amount of credit until it gets fixed.  When your debit card number gets stolen, you're out that amount of cash.  Thankfully my bank took quick action on it, but ever since then I use a CC when I make online purchases, just to not have to worry about my bank account getting drained.

I use my debit card for nearly everything, including online purchases. Over the years it's been compromised three times, somehow or another. In all three cases the bank noticed suspicious charges before I did, canceled the card, and contacted me. They also refunded every cent of the fraudulent charges quite promptly. And that is why I am still "shopping" at my bank.

The last time someone used the account fraudulently, the bank noticed that I'd done some shopping at a Walgreens in Tucson, Arizona, then "I'd" bought a bunch of stuff in London a couple of hours later (not online purchases). 

[Amara]

For those who want to shop online using a debit rather than a credit card, there is one way to go that hasn't yet been mentioned here. I used it when I signed up for PayPal since I wanted to use a bank account (no way were they getting my credit card number). I simply opened a new basic checking account at a bank that offered them for free. It had no connection to my credit union. When I wanted to make a purchase on eBay--the reason for PayPal--I simply transferred the correct amount of money into the bank, then let PayPal take it from there. I kept $6 in it otherwise so if anything had happened that is the maximum amount I would have been out.

[LadyClaire]

As a bank employee, I agree with everything about about credit card vs. debit card.  I encourage everybody to use a credit card and just pay it off at the end.  Besides what was already mentioned, a merchant can also put a hold on your funds (anywhere from one dollar, to hundreds of dollars) and you can't use your own money until the hold expires.  The hold can still be there even after the real payment is paid.  The bank can't help you since it's the merchant putting the hold on, not the bank. 

To be on topic, explaining a hold hurt many a customers' brains.  eta: wrong thread 

I once had a $100.00 hold on my card from when I pumped $30 worth of gas. That hold stayed on my account for two and a half weeks. Luckily it was a credit card, because I would've been furious if it had been my debit card.