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

[luddite]

Why is it a disaster waiting to happen?

 

I'm not being snotty when I ask ... have you been reading the responses?

[berrieh]

I'm not being snotty when I ask ... have you been reading the responses?

 

I'm looking for evidence. SOME people say fraud. But no one has explained how if Visa says they cover debit cards and have a guarantee, why is it not covered.

 

As far as I understand, the laws are slightly in favor of CC in terms of days to report for minimum liability ($50) but if a debit card is not lost and someone accesses the information via the account number (not card and pin), it is covered up to 60 days just like a CC. Also Visa, on top of this, makes personal liability $0. I'm looking for a source this information is incorrect basically.

 

Plenty of people seem to think it's dangerous, but they haven't cited WHY. The only concrete example of disadvantage I've truly seen is the holds.

[berrieh]

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.

 

I use my CC once a year to maintain credit (for my full auto bill and pay it right then as I know the exact amount to pay before it even appears). I do this to help me maintain good credit. I have alerts on the cards that tell me every time they are used for safety (via text, they alert me).

 

Are my funds truly not protected with a (edit- no PIN) debit card even though Visa says they are in the card terms printed clearly in multiple places on my bank agreement? (It does say that I am not covered in International PIN transactions and to use my card as credit internationally and call to lift the hold if I wish to do so but I will not be using the card in port.)

Edited September 24, 2015 by berrieh

[navybankerteacher]

I use my CC once a year to maintain credit (for my full auto bill and pay it right then as I know the exact amount to pay before it even appears). I do this to help me maintain good credit. I have alerts on the cards that tell me every time they are used for safety (via text, they alert me).

 

Are my funds truly not protected with a (edit- no PIN) debit card even though Visa says they are in the card terms?

 

Have you read all of the card terms? Are you aware of the time frames within which you must report a fraud? Are you aware of the limitations of their liability fo consequential damages? Even if you do ultimately get your money back (perhaps subject to your responsibility for the first $500 depending on how promptly you report the fraud) it may take a lot of time starting from when you report the fraud, and you will be responsible for bounced payments because of the lack of funds. Do you check you bank balance EVERY DAY (even when on a cruise)- if you do not, how will you know to make a timely report of fraud?

 

Frankly, no one on this thread gives a rat if you use credit card or debit card - but once more. I remain curious about why your ADHD prevents you from handling credit cards responsibly but represents no risk to your proper monitoring of the account which is impacted by debit card transactions.

 

"Hacked" means improper use of your card - either intentionally be someone obtaining your card number and name and making a phone charge - or, actually more likely, someone with whom you have initiated a legitimate transaction - like on a cruise- mistakenly over-charging. The money leaves you account - you may get it back - after a process which only starts after you report the fraud or over-charge.

 

Once more - I have yet to hear a valid reason for opting to use a debit card rather than a credit card -

[SheehanDJ]

I spent 2.5 years working international field service, then 2.5 years working nationwide field service. Except for the gap between Hawaii and India (heading west) I've used my debit card around the world.

 

I booked my flights on the company card, but everything else I used my debit card for to rack up points (used to be Continental airline points).

 

Maybe it is my bank (Key) but I've never had an issue with holds on my account. There have been holds but if they aren't processed within 24 hours (max, I've had holds go on at 10pm and at 8am the next day they are gone with no debit to the account) they are automatically released by my bank. My personal belief is this is why you see all those signs NOT to use a debit card, because the banks do dump the holds after 24 hours where as with a credit card they can put a hold on longer (speculation, I really have no idea)

 

As far as "Hacks". I can't take more than $300 a day out of my account in cash unless I go into the bank and have that turned off for a set period of time (when not on vacation I set it to $0 as I never use cash). I can't "charge" more than $500 a day without doing the same (or making arrangements before hand). Much safer than a credit card that will only stop working when maxed. If leaving the country before I go I drop off my itinerary at my local branch and charges are automatically declined if my card is attempted to be used somewhere I'm not (try that with a credit card)

 

If someone does hack my card I simply do the same thing people do with a credit card and get my money back, there is no extended amount of time, the bank reverses the charges until the vendor can prove my signature. I bought a tile saw at Home Depot when it was hacked, there was a hold on my account for $180.83 for about a week until Home Depot proved my signature. I didn't have to do anything, the bank did it for me, they also issued me a new card number just to be extra safe.

 

Credit cards aren't FDIC insured, my debit card account is, someone steals from me I get my money, the bank gets their money. The vendor gets screwed as it should be because they should have asked for ID.

[Cuizer2]

I use my CC once a year to maintain credit (for my full auto bill and pay it right then as I know the exact amount to pay before it even appears). I do this to help me maintain good credit. I have alerts on the cards that tell me every time they are used for safety (via text, they alert me).

 

Are my funds truly not protected with a (edit- no PIN) debit card even though Visa says they are in the card terms printed clearly in multiple places on my bank agreement? (It does say that I am not covered in International PIN transactions and to use my card as credit internationally and call to lift the hold if I wish to do so but I will not be using the card in port.)

 

I never said that your funds were not protected. I said the consumer protection laws for credit cards is better than the consumer protection laws for debit cards.

 

I have not read the terms for your debit card and thus cannot respond to your question with anything better than saying the protection offered to credit cards is better than the protection offered to debit cards.

 

If you don't feel comfortable using a credit card and do feel comfortable using a debit card, then use your debit card. It is that simple.

[SheehanDJ]

Once more - I have yet to hear a valid reason for opting to use a debit card rather than a credit card -

 

This one is easy.

 

Using a debit card means you are living within your means. Using a credit card, responsibly or not, means you are living outside your means. You may say "untrue! I pay my credit card in full every month".

 

Say you and I are going on a cruise. I use my debit card you use your credit card. The day we get back from our cruise we both loose our jobs. My cruise is paid for and done with. You haven't even begun to pay for yours. When that monthly bill comes are you going to still pay it off in full with no income coming in? What about those other credit cards you have? and your car payment? your mortgage?

 

See, I don't have any of those things, I own everything I have. I lose my job I cancel my DirectTV and nothing else in my life changes (other than I have time to slam thru that honeydo list). I don't even have to touch my savings, unemployment easily covers all my bills. The awesome thing is I won't even file for it, I'll simply get another job, sure it won't pay much but it will pay more than unemployment, and I'll work that job until something decent does come along. You on the other hand have all that debt hanging over your head, you go unemployed for 6 months, crap job or not, and the lawsuits and garnishments are going to start piling up.

 

The only responsible debt is a mortgage, and it is only responsible if you are actively trying to pay it off early.

 

But what about a credit rating, you got to have a good credit rating, everyone who lends money tells you that, they have commercials on TV about how a high credit score makes your life wonderful. How do you get a good credit rating? Why go deeper into debt! I have crap credit because I have no debt, back when I was drinking the kool-aid I used to be in the 725 ballpark. I'm sure I'm at the minimum now and I'm doing just fine.

[cruisingautiger]

I am a banker who has considerable experience in the payments arena. I understand what you (OP) are saying about the account you plan on using. The holds are not an issue and the money is not necessary for your day to day expenses, so if it is stolen you won't be impacted during the time it takes for the investigation to be completed. I am also lucky (smart) enough to be in a similar position and I NEVER use a debit card. I only use it as an ATM card in an emergency. I do not want to be on the hook for anything and since my credit card has been skimmed and part of a data breach, I would just have soon not have any skin in the game. If you would like some plain English explanation, I suggest that you google the name Clark Howard. Once you get to his website use the search option and type in "using a debit card". There are several articles listed there that may give you more info on the subject.

 

Also, just to clarify. Credit Unions are not insured by the FDIC, but do have a similar agency in place called the NCUSIF. Neither of these cover fraud on individual accounts.

[SheehanDJ]

I never said that your funds were not protected. I said the consumer protection laws for credit cards is better than the consumer protection laws for debit cards.

 

This isn't totally accurate. From the BBB:

 

"Federal law caps your liability at $50 if you report your debit card lost or stolen within two days. After two days, your liability jumps to $500, and waiting more than 60 days after your statement is sent to report unauthorized charges could leave you on the hook for the entire amount of the loss. By comparison, your liability in the event of unauthorized credit card charges tops out at $50.

 

The differences don’t stop there. With credit cards, you can withhold payment of the amount in dispute while the fraud is investigated, but debit card transactions withdraw funds directly from your bank account, leaving you temporarily out of pocket for that amount. By law, banks can take up to 10 days to investigate and restore your funds. In the meantime, you could be facing bounced checks and an empty wallet.

 

Fortunately, federal law isn’t the last word on this issue. Visa and MasterCard require debit card issuers to extend more generous protections, and many banks voluntarily restore funds much more quickly than the law requires.

 

Too make your statement accurate: "I said the consumer protection laws for credit cards is better than the consumer protection laws for some debit cards."

 

It comes down to shopping around. You can get a credit card that charges you a yearly fee and crap interest, or one that doesn't. You can bank with someone that protects your debit card the same as a credit card. If you want ultimate debit card protection join a credit union, most of them are hyper restrictive on even legitimate charges.

[kerryincork]

You can pre - load your credit card as well, that's what I do so I don't have a credit card bill when I'm back from my holiday, once when I went travelling for a year I put all my money on my credit card $10,000 and Visa paid me intrest for the year 😉 obviously credit card companies don't advertise that they pay you interest as this doesn't make them any money. Also if you have money on your card you are not charged for withdrawing cash. Things to look out for is the exchange rate your visa debit & visa credit charge (this doesn't change even if you have money on your credit card ) and insurance, typically any transaction on your credit card is insured. My company always call me if they see any dodgy purchases, so remember when travelling outside your country to let them know, I hand my card blocked once when I was holiday & it's a pain trying to get this sorted when overseas ☺ I hope this info is useful to you.

One other thing, I have a visa debit card too & I have found that it doesn't always work on those credit card machines in shops, that's another reason to have a backup card, I've never tried to use it on a cruise ship so don't know if there would be an issue? Any just bring a couple of hundred in cash and that would tied you over if something did happen to your debit card.

[berrieh]

This isn't totally accurate. From the BBB:

 

"Federal law caps your liability at $50 if you report your debit card lost or stolen within two days. After two days, your liability jumps to $500, and waiting more than 60 days after your statement is sent to report unauthorized charges could leave you on the hook for the entire amount of the loss. By comparison, your liability in the event of unauthorized credit card charges tops out at $50.

 

The differences don’t stop there. With credit cards, you can withhold payment of the amount in dispute while the fraud is investigated, but debit card transactions withdraw funds directly from your bank account, leaving you temporarily out of pocket for that amount. By law, banks can take up to 10 days to investigate and restore your funds. In the meantime, you could be facing bounced checks and an empty wallet.

 

Fortunately, federal law isn’t the last word on this issue. Visa and MasterCard require debit card issuers to extend more generous protections, and many banks voluntarily restore funds much more quickly than the law requires.

 

Too make your statement accurate: "I said the consumer protection laws for credit cards is better than the consumer protection laws for some debit cards."

 

It comes down to shopping around. You can get a credit card that charges you a yearly fee and crap interest, or one that doesn't. You can bank with someone that protects your debit card the same as a credit card. If you want ultimate debit card protection join a credit union, most of them are hyper restrictive on even legitimate charges.

 

Yes, I read that. Good point, but it is vague as to what Visa does specifically.

 

I believe the BBB gets this information from the FTC as well and FTC.GOV also says:

 

"If someone makes unauthorized transactions with your debit card number, but your card is not lost, you are not liable for those transactions if you report them within 60 days of your statement being sent to you."

 

The 2 day thing is about a lost/stolen card. Reporting that within 2 days is not the same as noticing all activity within 2 days. You have 60 days to notice fraudulent activity, just like CC - just less time to report a stolen/lost card under the law.

 

Edit: I have "Visa Zero Liability" protection (I thought all Visa debits do, but someone said specific banks have different terms, which sounds reasonable too - and this part of my Card Terms says I have 30 days to report a lost/stolen card via policy - I'm sure I would do it within 2 anyway though).

Edited September 24, 2015 by berrieh

[berrieh]

I am a banker who has considerable experience in the payments arena. I understand what you (OP) are saying about the account you plan on using. The holds are not an issue and the money is not necessary for your day to day expenses, so if it is stolen you won't be impacted during the time it takes for the investigation to be completed. I am also lucky (smart) enough to be in a similar position and I NEVER use a debit card. I only use it as an ATM card in an emergency. I do not want to be on the hook for anything and since my credit card has been skimmed and part of a data breach, I would just have soon not have any skin in the game. If you would like some plain English explanation, I suggest that you google the name Clark Howard. Once you get to his website use the search option and type in "using a debit card". There are several articles listed there that may give you more info on the subject.

 

Also, just to clarify. Credit Unions are not insured by the FDIC, but do have a similar agency in place called the NCUSIF. Neither of these cover fraud on individual accounts.

 

I did look at that site initially (some of the articles were videos, which I have no attention span for, but I read some of the text ones) but I can't find any article where he says WHY things like Visa Zero Liability protection aren't real.

 

The CC/Debit divide seems to be a matter of people anxious that they'd have to wait for their bank to investigate fraud and restore funds. But I'd be just as anxious with a CC because the debt is technically in my name. I've done chargebacks (2 total) for issues with my Visa debit, and they were immediate. I've reported problem activity on a CC and it was NOT immediate. Yes, technically, I could've "not paid" the CC balance and the money wasn't technically out of my account, but I don't see debt that way. (Honestly, it's killing me not to just pay off my student loans, because I could, but I know it would be stupid to pay tens of thousands extra, when they will be forgiven next year since I'm a Title 1 teacher on IBR. I always hate having debt.)

 

Anyway, I guess different debit cards have different terms? I thought the Zero-Liability protection was on all Visa/MC debits since it's a Visa policy. Someone else alluded to that. I have read my terms (I guess some people don't, but I read ALL fine print - when I bought my car, the guy was shocked that I sat there and read it and asked for a copy I could highlight, etc) and they are pretty clear. I also, as someone else noted, have limits on how much can be withdrawn in a day in cash (very low since I never take cash in more than $20 except from a teller hardly, so it's only $50/day - I go for a few hundred in cash every other month and use that for any cash stuff I need) and get notices on any charges over $50 too. I can set that to whatever, so could get notices for all charges if I wanted fairly easily.

 

I do understand that if this was my primary account, it may be frustrating to wait for them to add funds back. I also understand that there may be places I can't use it (my parents and significant other will be with us, and I will probably either use cash or ask them to cover something where I can't use my card; I may also ask my parents to bring my CC for emergencies, but not use it for my S&S for definite expenses, but really it'd make more sense to owe my parents than the CC in my case). I 99% won't be paying for anything at port between my parents and SO (I'm getting extra onboard dining and stuff for SO and he's supposed to cover ports, though I'm sure my parents won't let us pay for much if we all go together). So this would literally just be for the sign-and-sail card. I was curious why Carnival doesn't recommend it, and it seems to come down to holds. But I wanted to have a discussion to check.

[navybankerteacher]

 

Say you and I are going on a cruise. I use my debit card you use your credit card. The day we get back from our cruise we both loose our jobs. My cruise is paid for and done with. You haven't even begun to pay for yours. When that monthly bill comes are you going to still pay it off in full with no income coming in? What about those other credit cards you have? and your car payment? your mortgage?

 

 

This is a truly silly pseudo-comparison. A person with sufficient cash in his account to pay for expenses today can pay it today and not have that cash. Or he can elect to pay it a month from now - and until that month passes he will have access to that cash. In your extreme case of lost jobs, while the person who did not pay immediately will have a debt - he will still have the cash: that, at the very least, gives him the option to decide which of his obligations must be paid first - while the one who has elected not to use credit has no such option.

 

Paying cash up front makes sense for the undisciplined, or those living on the edge - for anyone else, paying for anything earlier than necessary simply removes options. Of course, the debt should never be allowed to accrue interest

[notentirelynormal]

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.

 

That's a pretty big assumption that people have such a small amount of money in their checking account. For many it might be true but for others putting a hold for $1000 (or even $2000) for a week on their checking account isn't that big a deal. OP said he didn't care because their was enough money that it wouldn't affect him. That said, personally I hate giving anyone access to my checking account that way or even for paying bills. I will do on line banking but nobody takes money directly out of my bank account - even the money I owe to the bank (like my car payment).

[Cuizer2]

This one is easy.

 

Using a debit card means you are living within your means. Using a credit card, responsibly or not, means you are living outside your means. You may say "untrue! I pay my credit card in full every month".

 

Say you and I are going on a cruise. I use my debit card you use your credit card. The day we get back from our cruise we both loose our jobs. My cruise is paid for and done with. You haven't even begun to pay for yours. When that monthly bill comes are you going to still pay it off in full with no income coming in? What about those other credit cards you have? and your car payment? your mortgage?

 

See, I don't have any of those things, I own everything I have. I lose my job I cancel my DirectTV and nothing else in my life changes (other than I have time to slam thru that honeydo list). I don't even have to touch my savings, unemployment easily covers all my bills. The awesome thing is I won't even file for it, I'll simply get another job, sure it won't pay much but it will pay more than unemployment, and I'll work that job until something decent does come along. You on the other hand have all that debt hanging over your head, you go unemployed for 6 months, crap job or not, and the lawsuits and garnishments are going to start piling up.

 

The only responsible debt is a mortgage, and it is only responsible if you are actively trying to pay it off early.

 

But what about a credit rating, you got to have a good credit rating, everyone who lends money tells you that, they have commercials on TV about how a high credit score makes your life wonderful. How do you get a good credit rating? Why go deeper into debt! I have crap credit because I have no debt, back when I was drinking the kool-aid I used to be in the 725 ballpark. I'm sure I'm at the minimum now and I'm doing just fine.

 

When you use a debit card, the entire amount is taken out. So you have less money in your account then I have in mine because I haven't paid anything yet. I have the option of stretching out the payments IF NECESSARY. You don't have that option.

 

Either way, here is the reality:

 

You have $5,000 in your account and pay $2,000 for your trip. You now have $3,000 in your account.

 

I have $5,000 in my account and one month later I get the bill for the $2,000 cruise. After paying it off, I have $3,000 in the account - the same as you. So how are you better off?

[Cuizer2]

This isn't totally accurate. From the BBB:

 

"Federal law caps your liability at $50 if you report your debit card lost or stolen within two days. After two days, your liability jumps to $500, and waiting more than 60 days after your statement is sent to report unauthorized charges could leave you on the hook for the entire amount of the loss. By comparison, your liability in the event of unauthorized credit card charges tops out at $50.

 

The differences don’t stop there. With credit cards, you can withhold payment of the amount in dispute while the fraud is investigated, but debit card transactions withdraw funds directly from your bank account, leaving you temporarily out of pocket for that amount. By law, banks can take up to 10 days to investigate and restore your funds. In the meantime, you could be facing bounced checks and an empty wallet.

 

Fortunately, federal law isn’t the last word on this issue. Visa and MasterCard require debit card issuers to extend more generous protections, and many banks voluntarily restore funds much more quickly than the law requires.

 

Too make your statement accurate: "I said the consumer protection laws for credit cards is better than the consumer protection laws for some debit cards."

 

It comes down to shopping around. You can get a credit card that charges you a yearly fee and crap interest, or one that doesn't. You can bank with someone that protects your debit card the same as a credit card. If you want ultimate debit card protection join a credit union, most of them are hyper restrictive on even legitimate charges.

 

You have just proved my point. The consumer protection LAWS are better for credit cards than debit cards. A voluntary agreement between MasterCard or Visa and the bank is not a law.

 

THE CONSUMER PROTECTION LAWS ARE BETTER FOR CREDIT CARDS THAN FOR DEBIT CARDS.

 

As to interest charges, I have no idea what the interest rates on my credit cards are. I pay the amount due in full every month. In fact, I use electronic banking and currently have bill set to be paid past the middle of next month - USING CURRENT FUNDS. In fact, I'll be paid twice before the money is actually taken out of my account to pay for the newest credit card bills.

 

Credit cards are not the root of all evil - if you understand that you are spending real money that you are going to have to pay for later. And that is one of the advantages of credit cards over debit cards, you get to borrow money for free as long as you pay it off in full when the bill arrives.

Edited September 24, 2015 by Cuizer2

[navybankerteacher]

You have just proved my point. The consumer protection LAWS are better for credit cards than debit cards. A voluntary agreement between MasterCard or Visa and the bank is not a law.

 

THE CONSUMER PROTECTION LAWS ARE BETTER FOR CREDIT CARDS THAN FOR DEBIT CARDS.

 

As to interest charges, I have no idea what the interest rates on my credit cards are. I pay the amount due in full every month. In fact, I use electronic banking and currently have bill set to be paid past the middle of next month - USING CURRENT FUNDS. In fact, I'll be paid twice before the money is actually taken out of my account to pay for the newest credit card bills.

 

Credit cards are not the root of all evil - if you understand that you are spending real money that you are going to have to pay for later. And that is one of the advantages of credit cards over debit cards, you get to borrow money for free as long as you pay it off in full when the bill arrives.

 

Good summary: an intelligent, and reasonably disciplined person will use a credit card. Assuming that you will always pay your credit card in full when billed, using a credit card is comparable to pulling the dollars out of your wallet a month after you buy whatever you are buying rather than at the instant you buy it.

 

If you are not sufficiently intelligent and disciplined to keep that amount of money available to pay the credit card bill in full upon receipt, then you should go ahead and effectively pay for someone else to discipline you. Even in today's absurdly low interest environment, money has time value: paying something before you need to costs you.

[Hlitner]

I really had a chuckle about the comment that "using a credit card means you are living outside your means!" That is total bunk. What can be said is that using a credit card "may" mean you are living out of your means. As an example, if I have a $50.000 balance in my checking account and charge $500 on my credit card I am not living outside my means. I am just being financially smart since I will pay that credit card bill in full around the due date. In fact, in my lifetime I have never paid a penny interest on any credit card. But using the "float" is simply good financial practice. But not paying off a credit card when due, and incurring interest (at the high rates charged by credit cards) is not wise.

 

We think of credit cards as simply one financial tool among many. There are times when a debit/ATM card is the best option, and there are times when a credit card is the best option. However, one should always be cognizant that in the USA there are more consumer protections for a credit card then a debit card. Another great advantage of credit card use is your ability (guaranteed by law) of being able to dispute any charge (you cannot do this with a Debit Card). So here is a good example. If a cruise line were to charge you extra (after you leave the ship and have your final statement) for something that is just not right, you can certainly call them and try to resolve the issue (there has been a recent CC post about just this issue). If it is on your credit card you could also put that item in "dispute" and immediately have the money put back into your account until such time as the dispute is resolved. But with a Debit card you have no such recourse. Over our fifty+ years of travel we have had to put several items (some for significant sums) into dispute..all of which were eventually resolved in our favor. The dispute process gives the consumer lots of leverage (since you have the money) wheras a dispute with a debit card gives the consumer zero leverage and you are at the mercy of cruise line (or whoever else charged your card). If they refuse to return your money you only recourse is the courts and this would have to be in the state designated by the Debit Card issuer.

Put simply, using a Debit cards is similar to writing a check. Once the money is gone...it is gone it is up to you to fight to get it back.

 

I should also add that using a Debit Card can be very difficult (or impossible) with some major rental car companies.

 

Hank

Edited September 24, 2015 by Hlitner

[simplelife]

You can use a credit card to set up your onboard account and pay it off with a debit card.

[JVilleGal]

As long as you don't mind the cruiseline repeatedly adding holds to your acct and the scheduled mortgage payment bounces.... Hotels and car rental agencies for the most part do not accept debit cards and it does not matter there is a Visa Logo on the card.

[notentirelynormal]

As long as you don't mind the cruiseline repeatedly adding holds to your acct and the scheduled mortgage payment bounces.... Hotels and car rental agencies for the most part do not accept debit cards and it does not matter there is a Visa Logo on the card.

 

What makes you think that the mortgage payment will bounce just because you had some holds on your account? Not everyone that uses a debit card lives paycheck to paycheck.

[berrieh]

As long as you don't mind the cruiseline repeatedly adding holds to your acct and the scheduled mortgage payment bounces.... Hotels and car rental agencies for the most part do not accept debit cards and it does not matter there is a Visa Logo on the card.

 

I think this is faulty information. I have had hotels confirm with my bank the amount of funds but never deny me the ability to pay with my debit. Only rented a car once with it but it was the same thing - they had to confirm funds (in the case of the car rental, I called ahead and they said a bank statement was fine; edit - # blacked out, obviously; they barely looked at it, honestly) but that was it.

 

The issues people seem to have using debits are issues of low funds in bank accounts (or what I'd consider low). Why would my payments bounce because of a few little holds? Who goes on vacation without at least 6 months - 1 year emergency fund in the bank these days? Back when I didn't have that, vacations were not in the budget as building my emergency fund was crucial. In this day and age, no job is guaranteed and it can take a long time to find a new one. I've only been laid off twice (once in my previous career and once as a teacher) and never been out of work/pay longer than a few weeks (technically, when I was laid off as a teacher, I never had a "lapse" in work but there was no guarantee until July that I had a new position for the following year). BUT it could happen anytime. I'd never spend a red penny on a cruise if I didn't have extensive backup in my various accounts.

 

Anyway, I spoke with the bank and went over the terms of my card, and I'm protected against fraud for 60 days. I have this in writing in both my contract and an email and I feel confident I could get money back if it was stolen somehow (which is my only real worry). I also have a "good" bank though (Educator's Credit Union) that isn't scummy so maybe it varies. The odds are high, obviously, that credit or debit, no fraud will happen.

 

As someone suggested though, I could (and might - have to talk to Carnival more about it) set up the account with a CC and pay at the end with a debit, but I have to look into if this requires me to stand in line at any point or if it can be done at a kiosk on ship.

Edited September 26, 2015 by berrieh

[JVilleGal]

What makes you think that the mortgage payment will bounce just because you had some holds on your account? Not everyone that uses a debit card lives paycheck to paycheck.

 

Your correct and the OP says the account is not tied to his day to day bills at home. So as the OP says he does not care..... I would also caution against only have one CC or/and ATM card. While on a cruise 2 yrs ago our credit union cut off and closed all ATM cards as they had a massive breach (computer hack). If we only had the one account we would have been completely cut off from our funds. They kept saying new cards were immediately sent out but if you are in Europe and the new card is at home that does not do you any good.

 

My experience is not necessarily your experience, it was just a word of caution. No need to get all excited!

[berrieh]

Your correct and the OP says the account is not tied to his day to day bills at home. So as the OP says he does not care..... I would also caution against only have one CC or/and ATM card. While on a cruise 2 yrs ago our credit union cut off and closed all ATM cards as they had a massive breach (computer hack). If we only had the one account we would have been completely cut off from our funds. They kept saying new cards were immediately sent out but if you are in Europe and the new card is at home that does not do you any good.

 

My experience is not necessarily your experience, it was just a word of caution. No need to get all excited!

 

I would probably bring a CC with me (definitely will have them actually as my parents are bringing them to me again on this trip - were in their safe for awhile), just not to use. I would bring both debits with me but not plan to use my primary for anything (same bank though). Plus, my SO has another bank and he would have all his cards and such - he would cover me if needed, as would my parents who will be on the same cruise.

[JVilleGal]

You seem to have thought it all thru and already looked into the pitfalls. Good for you! Have a great time :)