If I don't care about holds, is using my debit card a problem?

[berrieh]

I only care about liability, and I believe my card is covered as it's a Visa debit. I do not care about fund availability from this account as I have 2 and I don't pay bills with this one, plus it has more than enough money in it - the only thing I pay from it is my student loans which could easily be paid from the other account and will be paid prior to cruising anyway. I pay 3 months at a time and next time will be 3 weeks before cruising.

 

So far, I have seen lots of NEVER USE A DEBIT CARD - IT'S THE DEVIL!!!!! and EVEN THE SHIPS DON'T RECOMMEND IT!!!!! but it seems to only be because of held funds, not any other real issues. Am I right on that? I always have plenty of money and don't care if they hold the whole thing if they want as long as none of it gets stolen. I have plenty of money in the other account too. I don't earn a ton but I always live under my means, so I don't live paycheck to paycheck by any means and fund availability has never been any kind of issue.

 

I have a credit card but don't want to use it. This is because I always forget to pay credit cards. It's a real problem. So I mainly use my 2 debits. There is a 90% chance I will at least incur late fees if not get a hit to my credit if I use the credit. Plus, it's actually locked away in my parents' safe (I'm 30 so that may be silly but I don't have a safe and move around a lot). I used to have other credit cards but cancelled them due to late fees constantly and worries about my credit (usually pay before THAT hit but frustrating). I have bad ADHD that impacts this area of my life more than other areas.

Edited September 23, 2015 by berrieh

[klfrodo]

Sounds like you have educated yourself on the Pro's and the Con's.

 

 

Go for it

[John Bull]

 

I have a credit card but don't want to use it. This is because I always forget to pay credit cards. It's a real problem..

 

Won't go into the pros & cons of credit vs debit (& probably differences UK / America anyway) but the simple way to avoid interest & late payment charges is to set up a direct debit from your bank account to pay off the credit card bill in full & on time each month.

 

Once you've set that up, you don't have to remember - it happens automatically.:)

Works for me, and I reckon the vast vast majority of folk (excluding those who have to defer payments) do the same. :)

 

No worries

 

JB :)

[Athankfulheart]

We have used a debit card for several cruises with no problems. Now we use a rewards card instead. I wouldn't hesitate to use a debit card again though.

[navybankerteacher]

If using a debit card works for someone, it is their option. But I do have to wonder why someone would want to immobilize a large part of their checking account balance, and have to wait a week or more after the cruise was over to have the hold removed. A credit card does not impact your checking account - - which clearly has to have a sufficient balance for you to pay off the cruise charges as soon as the bill arrives. Using a credit card will also, in many cases, provide a material benefit - such as cash rebate or frequent flier miles.

 

I have never heard anyone post a really credible rationale for opting to use a debit card if a credit card was an option.

[cb at sea]

If you have the cash, why not just bring it and avoid ANY card? No holds, no fees...cash is king!

[Keith1010]

Either way is fine and you have done a good job on this one.

 

Keith

[Bluetail48]

We used our debit card when we went on our cruise 2 years ago (to Alaska) and had ZERO issues with the amount of hold and settling our account. The most critical element is that you have at least the minimum amount the line will hold on your account. We did, and we enjoyed knowing that our vacation was completely paid for at the end, as opposed to paying a credit card bill, possibly incurring interest fees and/or other charges after you get back. :(

 

We primarily used cash in the ports when we bought trinkets, although I think we used our debit card to pay for our HIPPO tour when we were in Victoria, BC, which was not organized through the ship. We did not find that our billing was "off", so there weren't any disputed charges or concerns when that tally arrived in our rooms on the final day.

 

We also did not have to travel to the port, as we live 50 miles away and a friend dropped us off and picked us up. As such, there were minimal travel fees. The most critical thing, though, is to contact your bank and let them know that you're going on a cruise, as well as any traveling associated with that cruise (if necessary). If you do the legwork ahead of time, the cruise line shouldn't have any issues with setting up your onboard account.

 

Happy Cruising!

[berrieh]

Won't go into the pros & cons of credit vs debit (& probably differences UK / America anyway) but the simple way to avoid interest & late payment charges is to set up a direct debit from your bank account to pay off the credit card bill in full & on time each month.

 

Once you've set that up, you don't have to remember - it happens automatically.:)

Works for me, and I reckon the vast vast majority of folk (excluding those who have to defer payments) do the same. :)

 

No worries

 

JB :)

 

That would be lovely, but my bank is a Credit Union that will not do this (both accounts through the same bank, different cards).

[berrieh]

If you have the cash, why not just bring it and avoid ANY card? No holds, no fees...cash is king!

 

I hate carrying cash. I will bring some for tips, portioned out (in addition to pre-paid grat). I also don't want to stand in line at all if possible. I really don't like cash at all. I like everything through one place (yes, I have 2 accounts, and they are not "linked" for funds but they can be seen through one bank login).

[berrieh]

We used our debit card when we went on our cruise 2 years ago (to Alaska) and had ZERO issues with the amount of hold and settling our account. The most critical element is that you have at least the minimum amount the line will hold on your account. We did, and we enjoyed knowing that our vacation was completely paid for at the end, as opposed to paying a credit card bill, possibly incurring interest fees and/or other charges after you get back. :(

 

We primarily used cash in the ports when we bought trinkets, although I think we used our debit card to pay for our HIPPO tour when we were in Victoria, BC, which was not organized through the ship. We did not find that our billing was "off", so there weren't any disputed charges or concerns when that tally arrived in our rooms on the final day.

 

We also did not have to travel to the port, as we live 50 miles away and a friend dropped us off and picked us up. As such, there were minimal travel fees. The most critical thing, though, is to contact your bank and let them know that you're going on a cruise, as well as any traveling associated with that cruise (if necessary). If you do the legwork ahead of time, the cruise line shouldn't have any issues with setting up your onboard account.

 

Happy Cruising!

 

Sounds good. Yes, I will remember to call my bank and alert them. On port, my SO will carry my cash and I'll have stuff for that, but I really never use anything but my 2 debits so prefer to use them. I don't care about holds at all, as I said, because there are more than enough funds - I have enough in the student loan account alone to pay off my full graduate school loans which is why there's so much (only not doing so because I'm a teacher on IBR and teach Title 1 - my loans will be forgiven very soon rather than pay them all off and I'll keep the money for a further degree without loans).

[berrieh]

If using a debit card works for someone, it is their option. But I do have to wonder why someone would want to immobilize a large part of their checking account balance, and have to wait a week or more after the cruise was over to have the hold removed. A credit card does not impact your checking account - - which clearly has to have a sufficient balance for you to pay off the cruise charges as soon as the bill arrives. Using a credit card will also, in many cases, provide a material benefit - such as cash rebate or frequent flier miles.

 

I have never heard anyone post a really credible rationale for opting to use a debit card if a credit card was an option.

 

I can set alarms and calendar reminders and whatnot and STILL somehow not pay my credit card for weeks after I knew it was due. Paying immediately after is hard as the full charges may not hit the day we arrive back (and odds are I won't be able to figure out how to pay that day either as it's Saturday and then Sunday). I really, really struggle to pay credit cards. All my other payments are automatic, but my bank will not auto-pay credit cards. Another poster suggested that, and if my bank did it, I would just do that! I know this sounds crazy. I have a few dysfunctional areas with my ADHD (taxes, but my SO does those, CC bills, and mail which my SO mostly handles as well - maybe someday I'll just let him take over all money but I'm actually good with money, just not paying bills and this is separate money, not our joint funds, for my student loans - I'll pocket most of it though because of Title 1 loan forgiveness, but just sitting there for now).

[navybankerteacher]

I can set alarms and calendar reminders and whatnot and STILL somehow not pay my credit card for weeks after I knew it was due. Paying immediately after is hard as the full charges may not hit the day we arrive back (and odds are I won't be able to figure out how to pay that day either as it's Saturday and then Sunday). I really, really struggle to pay credit cards. All my other payments are automatic, but my bank will not auto-pay credit cards. Another poster suggested that, and if my bank did it, I would just do that! I know this sounds crazy. I have a few dysfunctional areas with my ADHD (taxes, but my SO does those, CC bills, and mail which my SO mostly handles as well - maybe someday I'll just let him take over all money but I'm actually good with money, just not paying bills and this is separate money, not our joint funds, for my student loans - I'll pocket most of it though because of Title 1 loan forgiveness, but just sitting there for now).

 

If you have such memory problems concerning credit cards, isn't it also possible that you might forget to put enough cash in your account - or forget that you had recently written a large check - and show up for check-in with insufficient balance in your account -- and be denied boarding?

 

Or is your bad memory only credit card oriented.

 

I repeat: I have never heard anyone post a really credible rationale...

[berrieh]

If you have such memory problems concerning credit cards, isn't it also possible that you might forget to put enough cash in your account - or forget that you had recently written a large check - and show up for check-in with insufficient balance in your account -- and be denied boarding?

 

Or is your bad memory only credit card oriented.

 

I repeat: I have never heard anyone post a really credible rationale...

 

I have an excellent memory. I do not "forget" exactly but get distracted in the steps of paying my CC cards. I remember over and over again but never in a moment where I can complete the task efficiently. This makes it even worse as it causes constant low-grade anxiety. I know the neurotypical mind probably says "Then why not just pay it!" I say that to myself! But I don't pay it, or I start to pay it and get distracted, or I stress about being late so much I pay it even later. This is one of the few places my ADHD still manifests if not medicated (I am better at my work and life in general non-medicated and taking stims your whole life is kind of rough on your body).

 

The other issues simply wouldn't arise for me. I don't write checks (rent auto debits). I get a notification if my account balance drops too low or large purchases occur. I have plenty of funds. I don't put cash in the account (it's sitting there and has been for years; it only gets withdrawn in small amounts for student loans, which are technically paid monthly but come out of the account 1x/quarter automatically). My salary auto-credits to the other one. I'm never near a 0 balance and have 6-12 months minimum on-hand cash in the other account; this one has enough to pay for a graduate degree basically (or that minus 3 years IBR small payments, like 80% of one) so a fair amount of money. Losing the money would be a concern. Not being able to spend it for a week is no concern. Overspending isn't something I do so not worried about tracking my spending. I'm good with money in all other ways.

 

My memory is actually awesome which is why my ADHD only bothers me with certain rote tasks. I understand many may not understand my struggle with CCs (this again, like the technically remembering but not actually remembering to PAY, makes it even worse and causes anxiety). If my CCs would auto-debit (like everything else can), I'd be fine, but they don't, and one I have to call to pay and the other go through a multi-step online process. Maybe if you don't have organizational issues/ADHD you cannot understand. As a kid, I was always very good at school in general but there were a few organizational processes I just couldn't do well (certain ways of keeping binders, etc) despite being well organized in other ways. I don't know exactly why, but my counselor/ADHD coach taught me that some things are just better to avoid and find workarounds when my brain doesn't react neurotypical. CC are one of them, but I would use it IF there was a real issue of liability (something inconvenient to me, not just a hold).

 

Basically, the reason I do things the way I do is it allows me to manage my ADHD in a lifestyle vs. medication way.

Edited September 23, 2015 by berrieh

[kitty9]

The biggest problem with a debit card is that if its scammed, your account could be wiped out in two minutes. It seems that the places that have been hacked, it was the debit cards that have had the most problem. At least with a credit card you have the security of knowing that if you're hacked, you're not liable for the charges.

[berrieh]

The biggest problem with a debit card is that if its scammed, your account could be wiped out in two minutes. It seems that the places that have been hacked, it was the debit cards that have had the most problem. At least with a credit card you have the security of knowing that if you're hacked, you're not liable for the charges.

 

Well, this is what I'm asking about. As I understand it, Visa covers my Visa debit card as well as my credit card (though it could take 45 days to get funds back, but again, this is not money I need *immediately* in any case). But is there any real risk of getting scammed or hacked? And if I am is there any reason to believe Visa won't cover me like they say they will?

[luddite]

The debit card is best described as actual money whereas the credit card is potential money. If the debit card is hacked or compromised the money is gone, at least until it can 'returned'. Which can take a while. Meanwhile, the account is empty and can be further assaulted by overdraft charges.

 

Never, ever use a debit card for this is a mantra.

It could maybe be amended......if you use it and encounter problems, don't come back and complain that you weren't warned.

[berrieh]

The debit card is best described as actual money whereas the credit card is potential money. If the debit card is hacked or compromised the money is gone, at least until it can 'returned'. Which can take a while. Meanwhile, the account is empty and can be further assaulted by overdraft charges.

 

Never, ever use a debit card for this is a mantra.

It could maybe be amended......if you use it and encounter problems, don't come back and complain that you weren't warned.

 

My credit union doesn't charge overdraft charges; that is one reason I like them - there are others. Even though they don't auto-pay CCs like the big banks do, they are great with custsomer service and say I'm covered for fraud. Is there any danger of losing money forever if its stolen? Isn't that illegal in the US and doesn't Visa also protect against debit card fraud? People keep saying it's dangerous but I would like information as to the reality of why.

Edited September 24, 2015 by berrieh

[Hlitner]

The issue with using Debit cards is a bit complex when it comes to cruise lines. So you would need to check with your particular line as to their policy. Most mass market lines put a credit hold on credit cards and on a long cruise this can amount to over $1000 (or more). Credit cards give the cruise line this option and the credit hold is simply a way for the line to better guarantee that there is a sufficient remaining credit limit on the card to cover the potential onboard account. A credit hold for up to 30 days is very normal. But a Debit card works in a different way (and also does not have the consumer protections afforded under Federal Law to credit cards). A Debit card (or some would call it a check card) is directly linked to an account (usually a checking account). One cannot normally put a "credit hold" on a debit card for more then 1 day (up to 8 days with some banks). The funds are either available or they are not! So when a cruise line accepts a debit card they are doing it on faith....and most cruise lines have learned not to have much faith in their passengers ).

 

Since Debit Card policies do vary (credit card policies are mostly covered by specific federal regulations in the USA and Canada) there is a reluctance of some cruise lines to accept Debit cards in lieu of a credit card.

 

Hank

Edited September 24, 2015 by Hlitner

[berrieh]

Since Debit Card policies do vary (credit card policies are mostly covered by specific federal regulations in the USA and Canada) there is a reluctance of some cruise lines to accept Debit cards in lieu of a credit card.

 

Hank

 

I know the cruise in question (Carnival) allows me to use a debit and have done it before (once, only one cruise done so) but worry based on what some threads say. It isn't a matter of "Can I?" but is there any real reason (besides holds, which I care not at all about - I don't care if I have unavailable funds) why I should not?

Edited September 24, 2015 by berrieh

[KARTI1955]

I have used a debit card many times for my onboard account and have never had a problem. I contact my bank prior to leaving and they have my travel location and dates. I do NOT use the cards in port - ever. This is where the danger lies. I also have never had the bank hold funds. By the time I am home, the deduction is complete.

[navybankerteacher]

Well, this is what I'm asking about. As I understand it, Visa covers my Visa debit card as well as my credit card (though it could take 45 days to get funds back, but again, this is not money I need *immediately* in any case). But is there any real risk of getting scammed or hacked? And if I am is there any reason to believe Visa won't cover me like they say they will?

 

A Visa debit card is really a bank debit card which can also be used as a credit card through visa. As I understand it, a credit card company assumes some responsibility for offering protection against fraudulent credit charges. When the debit function is used, your bank account is accessed. If it is hacked, your bank account can get emptied, and I do not think that Visa offers protection in such a case --- they have no financial interest in doing so the way they have in protecting you against fraudulent credit transactions. Their revenue comes from the discount (2% to possibly as much as 5%) they apply on every credit transaction - which the merchant is willing to accept because it gives him immediate cash for your purchases while freeing him from any risks of non-payment on a charge account or a bounced check.

 

Debit transactions are very different from credit transactions - even though the same card may be used. You should fully understand the differences. I do not believe that Visa guarantees you against all risks.

[luddite]

It is a disaster waiting to happen. That's why it is not recommended.

By the cruise lines, hotels, car rental places.....

[berrieh]

Why is it a disaster waiting to happen? That's what I'm asking. Is there not fraud protection for debit accounts via Visa and Federal law as numerous sources say? Am I missing some element of that? I truly want to know.

 

I thought the companies don't recommend it because it's less convenient for them (the holds another poster mentioned) and because people tend not to like their money held.

 

A Visa debit card is really a bank debit card which can also be used as a credit card through visa. As I understand it, a credit card company assumes some responsibility for offering protection against fraudulent credit charges. When the debit function is used, your bank account is accessed. If it is hacked, your bank account can get emptied, and I do not think that Visa offers protection in such a case --- they have no financial interest in doing so the way they have in protecting you against fraudulent credit transactions. Their revenue comes from the discount (2% to possibly as much as 5%) they apply on every credit transaction - which the merchant is willing to accept because it gives him immediate cash for your purchases while freeing him from any risks of non-payment on a charge account or a bounced check.

 

Debit transactions are very different from credit transactions - even though the same card may be used. You should fully understand the differences. I do not believe that Visa guarantees you against all risks.

 

I don't use my card as a debit (it actually doesn't have a PIN at my request - discontinued that function) but it is linked to my bank account. Are you speaking to the way it is used?

 

Also what constitutes hacked in your scenario?

Edited September 24, 2015 by berrieh

[Cuizer2]

I only care about liability, and I believe my card is covered as it's a Visa debit. I do not care about fund availability from this account as I have 2 and I don't pay bills with this one, plus it has more than enough money in it - the only thing I pay from it is my student loans which could easily be paid from the other account and will be paid prior to cruising anyway. I pay 3 months at a time and next time will be 3 weeks before cruising.

 

So far, I have seen lots of NEVER USE A DEBIT CARD - IT'S THE DEVIL!!!!! and EVEN THE SHIPS DON'T RECOMMEND IT!!!!! but it seems to only be because of held funds, not any other real issues. Am I right on that? I always have plenty of money and don't care if they hold the whole thing if they want as long as none of it gets stolen. I have plenty of money in the other account too. I don't earn a ton but I always live under my means, so I don't live paycheck to paycheck by any means and fund availability has never been any kind of issue.

 

I have a credit card but don't want to use it. This is because I always forget to pay credit cards. It's a real problem. So I mainly use my 2 debits. There is a 90% chance I will at least incur late fees if not get a hit to my credit if I use the credit. Plus, it's actually locked away in my parents' safe (I'm 30 so that may be silly but I don't have a safe and move around a lot). I used to have other credit cards but cancelled them due to late fees constantly and worries about my credit (usually pay before THAT hit but frustrating). I have bad ADHD that impacts this area of my life more than other areas.

 

I am one who will recommend against using a debit card. However, you have only hit on one of the reasons. In the United States, the consumer protection law for credit cards is much stronger than the consumer protection laws for debit cards. That is another strong reason to use a credit card vs. a debit card.

 

However, everyone is different and what works for most does not mean it will work for all. If the advantages of using a debit card out weigh the disadvantages in your situation, then by all means use the debit card.

 

You should also look into cancelling your credit cards if you are not going to use them. An open line of credit that you never intend to use is a liability, not an asset.