Debit vs. credit

Hi everyone – quick question. I have one credit card, as well as my debit. Should I use the credit for my onboard expense account and take my debit ashore? Or, is it not safe to use it in foreign countries?

Thanks for your help!

IMO, Use the credit card only. I have always used my credit card all over the world. If there is a problem with someone hijacking it, you are only liable for $50 max. If you use your debit card, someone can empty your bank account.

If anyone has more detailed information, please post it

With debit cards, the cruise lines can put a hold on your account and you won't have access to your money for as long as two weeks. Never use a debit card for your on board account. I agree with the person who said that if your debit card gets cloned, they can wipe out your account within minutes. Cloning of credit/debit cards is rampant.

You can always set up a cash account for on board expenses :) that's what I plan to do

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I actually just applied for the Royal Caribbean Visa. So, I'll use that for my onboard account. Thanks for the advice!

Your credit card provides more protection than your debit card, including buying faulty goods. Particularly useful when buying abroad.

As cruisead's post, when you present your card to open your on-board account at the start of your cruise, most cruise lines put a daily hold on funds available on that card to cover your anticipated spend. This doesn't show on your statements because the money isn't taken, it's just a "hold" on funds. Hotels etc often do the same thing though you probably don't even know about it.

At the end of the cruise your card is debited what you actually spent as one lump sum.

But it takes another week or more for the "hold" to be released.

Cruise lines blame banks, banks blame cruise lines, but the result is that even though you've paid for what you bought you cannot access the "held" money until that hold is released.

This is the case with both debit cards & credit cards.

It's rarely a problem with credit cards because most folk have a credit limit way in excess of their monthly spend.

But if you run a low bank balance, registering a debit card for your on-board account can result in your being unable to draw cash, or a regular payment out of your account - rent, mortgage, utilities, hire-purchase payment, cheques etc being dishonoured.

For drawing cash from an ATM it's usually cheaper to use your debit card.

If you use a credit card to draw cash you will be paying interest from the moment you draw the cash until you settle your credit card bill. So if you do use your credit card in an ATM, don't wait for your usual monthly arrangements to settle it - pay it off soonest. (The cruise line's "hold" on funds doesn't attract interest, cos the money's not actually taken)

Clear as mud ;)

JB :)

John - thank you so much. I heard about cruise lines putting holds on your debit...much of the reason I was leaning towards using a credit card. Thanks for your help!

John - thank you so much. I heard about cruise lines putting holds on your debit...much of the reason I was leaning towards using a credit card. Thanks for your help!

They also place holds on the credit card.

They also place holds on the credit card.

But it's technically not your cash they tie up, just your available credit. So you are a lot less likely to bounce important payments (mortgage, car insurance) because your cash has a hold. Stick with the credit card or cash.

We use cash for our ship account. We also use cash for ports. I break down what out allotted amount per port is and put it in envelopes, these stay in our safe until we are leaving the ship. We split it up between us before we go ashore, so that if one person somehow loses some, we haven't lost it all.

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We use cash for our ship account. We also use cash for ports.

I keep forgetting about the option of setting up an on-board account with cash. :rolleyes:

That's because if your own currency isn't the same as ship's currency it makes life complicated & expensive.

But an American on a USD ship, or a Brit on a sterling ship. no worries. :)

Other than the possibility of a long slow line at Guest Relations on the last night, sorting out who owes who - unnecessary if paying by card.

JB :)

A credit card with a sufficient available line of credit makes the most sense - unless you spend wildly on board, you won't come near exhausting your line, and the "hold" the put on your line has no impact, and doesn't get implemented until the end of the cruise - giving you until the end of that billing cycle to pay it off, with no interest charges.

With a debit card the "hold" is against your actual cash balance, so unless you carry very large balances, you can wind up with checks bouncing or automatic payments being suspended. Plus, when the draw is actually implemented, you are out the funds immediately - without the built in delay of credit card billing cycle and grace period.

With cash, you have the inconvenience and risk of having to carry large sums, the nuisance of having to settle up on the last day to get the refund due from your deposit (they are not likely to let themselves get in the position of your cash deposit being below the amount of charges,

Overall, a credit card is much simpler, safer and more economical.

I wouldn't suggest using your debit card for your on board account because the cruise line will hold money, during the cruise, and then you will be charged the full amount after the cruise. The hold will eventually come off, but it could take up to 3 weeks, depending on your bank. For example, say you spend $1000 on board for the week -- During the week, you'll have a total of $1000 in holds on your account, so the cruise line knows that the funds are actually available. THEN, on the final morning, your card will be run for the full $1000. So, you're essentially being charged $2000 until the hold is released. I would suggest setting up a cash account if a credit card is not available.

The one (and only, iMO) place to use an ATM card onshore is to get local currency.

Experienced travelers often use a local ATM to get local currency at current (and often best) rates. Then use the cash for your needs in that port or part of the world.

This really has little to no application if your cruise is in the Caribbean (and you are US citizens). USD$$ is accepted basically everywhere. Offhand it is difficult to remember a port or shop in the Caribbean where prices were not posted in USD.

Never, ever use a debit card for this.

The one (and only, iMO) place to use an ATM card onshore is to get local currency.

 

Experienced travelers often use a local ATM to get local currency at current (and often best) rates. Then use the cash for your needs in that port or part of the world.

 

This really has little to no application if your cruise is in the Caribbean (and you are US citizens). USD$$ is accepted basically everywhere. Offhand it is difficult to remember a port or shop in the Caribbean where prices were not posted in USD.

French St. Martin shops have prices in euros, though they gladly accept US $.

Used to work for a bank. Guy calls in, asking why such a large charge on his bank account from the cruise line? Turns out, someone at the desk was swiping his debit card for all sorts of stuff that he didn't authorize, to the tune of about $3,000.

Cured me of ever using the debit on the ship. Cash account only!

I always use a cash account onboard, it helps manage your spending, Plus it makes me want to come home with money in my pocket.

I have no credit cards, only a debit card. How about using a pre-paid VISA card for onboard expenses & using my debit card for expenses off the ship. Pros/cons?

Use your credit card only .

1) It delays payment to your next billing cycle

2) No protections using a debit card which could be used to empty your bank acct's

3) Not using your CC you lose out on earning points/rewards .

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We travel overseas quite a bit. The only time we use an ATM card is to withdraw local currency from an ATM machine either at a bank or maybe a 7-11.

I have no credit cards, only a debit card. How about using a pre-paid VISA card for onboard expenses & using my debit card for expenses off the ship. Pros/cons?

there have been several threads that mentioned ships will not accept the pre-paid cards...might want to check that out before planning on taking one.

I have no credit cards, only a debit card. How about using a pre-paid VISA card for onboard expenses & using my debit card for expenses off the ship. Pros/cons?

Check with your cruise line, some lines will not accept a pre-paid card towards the on board account.

If your debit card info is "stolen", your money your debit card is linked to is gone until you straighten it out with your bank. That may take a few days to weeks to do so.

If you choose not to have a credit card, then I would do the opposite. Make sure you have enough money in your debit account to cover shipboard expenses and holds. Use the pre-paid card for off ship purchases. Note that it may take up to a couple of statement cycles to clear your debit account hold.

Always credit cards and for out the country purchases I have a Capital One credit card with no foreign transaction fees.

Never, ever use a debit card for this.