Question for Those Who Use Debit Cards...

[MISSINDI]

DH and I rarely use credit cards, so when we're not paying by cash or check, we both use our debit cards. My system now is to save the receipt, and when I get a chance, enter it into my check register. Once that's done, I shred it. Problem is, with both of us using the debit card pretty regularly, I end up with stacks of receipts that haven't been entered into my check register yet. Is there any easier way to go about this? Anything to tame this paper tiger... :)

[leebee]

My bank has online banking--I just print up the report and double-check my entries once a week. If DH & I shared an account (we do not), I'd have to do it a couple of times a week to keep track.

[gertdog]

Well, one way is to use Quicken or another financial management software program. We use Quicken and I download my debit card transactions from my bank 1-2x/week so that I always know my balance. Because my debit card is linked directly to my checking account, when I download the most recent transactions I can also see which checks have cleared, whether my paycheck has been direct-deposited, whether the automatic debits I set up for certain bills have gone through, etc. Works pretty well for us!

[MISSINDI]

So neither of you actually write anything in a check register the old-fashioned way? If you don't write anything down, how can you keep track of what you have in the account? I understand you can see everything online, but that's only taking into account what's cleared already.

We do have online banking, and I log in regularly to see checks clear, deposits clear, make sure nothing's awry, etc.

I tried Quicken years ago, but couldn't get the hang of it - probably reading the directions would have helped. ;) It just wouldn't cooperate with downloading info from our bank, so I was hand-entering everything and getting very discouraged. Maybe it's time to take another look.

Stephanie -- do you just save your debit card receipts until it shows up online?

[Grace]

I do what leebee does. I check my account online every few days and write all the transactions in at once - I don't bother with the paper receipts - too much clutter and I just misplace them anyway - far more aggravation searching all over (purse, pants pockets, car, DH's wallet, etc.) trying to scrounge up all the receipts.

[tbb113]

I seldom use my debit card (I'm a check person :rolleyes: ) but when I do use my debit card, I immediately write the transaction into my checkbook (which I always carry with me).

I don't think I could share a checkbook with someone (or a debit card). I need to be in control and if two people were hitting the account, I know I would run short of money.

[Grace]

DH and I only have one checking account, but I feel the same way Tyra. To get around this, I have DH do all his purchases with a specific, designated credit card, which I pay off at the end of the month. But at least this way I can't be temporarily short in the checking account and accidentally overdraw! :D

[MISSINDI]

Originally posted by Grace
DH and I only have one checking account, but I feel the same way Tyra. To get around this, I have DH do all his purchases with a specific, designated credit card, which I pay off at the end of the month. But at least this way I can't be temporarily short in the checking account and accidentally overdraw! :D

That might be an idea. I have our accounts linked so don't worry about overdrawing the account, but with both of us using debit cards from the same account, it gets to be a lot. I always carry the checkbook, so most of the time, I'll write a check, which is a lot easier. The DH solely uses the debit card, and then I'll get handfuls of receipts for 1-2 weeks worth. So I'm trying to conquer many things at once ... better recordkeeping, less receipts, safety in terms of identity theft, etc., etc.

[rburganmckinley]

I haven't used a checkbook register for close to 10 years. I don't even keep one in my checkbook. I've been using Money for 8 or so and downloading my statements to there. I also save my reciepts. About once a week I download my statements and enter any misc reciepts into Money, but it's not a big deal if I lose one since I can see who the charge was to when I download my statements. I hate using checks, and really hate cash. I can't seem to keep track of where I spend when I use cash. But I also keep a buffer in my account and freak if I think I might go below it. :rolleyes: Yes, I have control issues. Doing it this way I haven't had to go through more than one or two statements when they come in the past few years. It just all works out so neatly that the difference between the Money number and the bank statement's number is 0.

[rburganmckinley]

Oh yeah, I forgot. Why shred all the reciepts? Your account number is normally all stars with only a few numbers showing... which is about as useful as a random number generator.

[gertdog]

Originally posted by MISSINDI
So neither of you actually write anything in a check register the old-fashioned way? If you don't write anything down, how can you keep track of what you have in the account? I understand you can see everything online, but that's only taking into account what's cleared already.

I tried Quicken years ago, but couldn't get the hang of it - probably reading the directions would have helped. ;) It just wouldn't cooperate with downloading info from our bank, so I was hand-entering everything and getting very discouraged.

Stephanie -- do you just save your debit card receipts until it shows up online?

I don't use a check register at all- no written records. When I pay bills by check, I write them out while sitting at the computer during a Quicken session anyway, so I enter the amounts of the checks into Quicken directly. When I download transactions from the bank, Quicken matches up cleared check numbers with what I've already entered. I also schedule transactions in Quicken (mortgage, car payments, fixed bills like our phone etc., deposits of paychecks) so that they are automatically entered each month.

I keep the receipts until the transaction shows up online then shred or file as appropriate.

Quicken has gotten better over the years at coordinating with financial institutions, but you might check with your bank to see if they support Quicken downloads. We use Wachovia and haven't had any problems. So much of our stuff is available online now that it just made sense to do it this way. Bank and credit card statements, mortgage and car payments, our retirement plan info, etc. I love that with just a few clicks I can see our overall current financial status. And I use the categories to help us stay in line with our budget for things like entertainment, clothes, eating out, cookbook purchases ;) etc.

[blazedog]

FWIW, I had a debit card unbeknownst to myself. I didn't realize it when I was sent a new card.

To make a long story short, the card was stolen and used which is when I found out I even HAD one. The problem with debit cards is that UNTIL the stuff is reconciled with your bank, you are OUT the money. If a significant amount is used, you will also wind up bouncing checks.

Luckily for me, it was obviously an idiot that found the debit card who immediately used it to charge a a bunch of gas (multiple cars I would assume) within a short period of time so the amount withdrawn from my account wasn't that large and I didn't bounce any checks -- although the possibility was there.

I just don't see why anyone wants one of those things honestly. I charge almost everything and pay it off every month - amass frequent spender points, have the convenience of not paying in cash and run no risk. With a credit card, if it's stolen, you don't have to pay the charge -- huge difference to me. When my CC statements come in, I enter them into my Quicken register but my actual bank account has very few transactions I have to reconcile.

So why do you want one of those things? I see a lot of disadvantages and no advantage.

[HejazSunKat]

It is possible for the bank to make a mistake so I prefer not to wholly trust what's showing online. I get receipts so that I can check and make sure THEY'RE recording things right.

I have a zippered compartment in my purse (I hate having my wallet bulging with paper) where I stick all receipts and then every couple of days (when I feel like I might be losing a handle on what's actually in my checking account :) ) I dump that out, record my transactions and file the receipts for use when I'm balancing the bank statement. Is it possible for you to set up a basket or other receptacle that's convenient for your husband to dump his receipts into every day? A couple of ideas: Near his dresser when he's changing out of his street clothes after work or in the kitchen when he comes in the house. If there's something for him to put them in near where he regularly unloads his pockets you can pick up his receipts every day or so instead of getting a big wad every couple of weeks.

[ChristyMarie]

I keep all my debit card receipts in a special section of my wallet and add them to my check register (yes, still use an old fashioned check register) once a week.

Works for me.

[Grace]

Since the transactions are all electronic, it really isn't possible for the amounts to be different. It's not like another human sits down and re-enters the amounts (therefore opening up the possibility for numbers to be transposed, zeros to be added on, etc.). What you see on the slip that you sign is what gets transmitted, so if it's correct at the time of signing the slip, it will be correct when it arrives at the bank too. In fact, it's safer even then checks (as far as errors), because when you write a check, someone (or some machine) has to decipher your handwriting. That person (or that machine) then keys into the system how much they think your check is supposed to be for (and of course the written out portion helps them to decipher what you REALLY mean, in case the numbers have been messed with or are for any reason illegible).

If you're really worried about mistakes, make sure you check your receipt at the time of purchase.

[mrswaz]

Grace- I think you'd be surprised at the errors that can happen. I worked for a time in the cash office of a major retail chain. Let's just say that at anytime I could have helped myself to thousands of customers credit cards and debit cards. Debit cards are far more secure, as long as they are used as such with the PIN number. Checking your receipt at the time of purchase is helpful to catch cashier errors at the time. But in most retail establishments, anyone with a little know-how can go back into records and charge away. Scary- but true.

And to answer the question, I myself am terrible at keeping track of expenditures. I never write down debits or checks. If there's a question I use duplicate checks, but for the most part, I check my bank account online, and have a running tally in my head.

[clairea]

DH and I share a checking account and primarily use the debit card, but I make 90% of the transactions so it doesn't get too confusing. He gets a set amount of cash out each week to cover lunch and other misc. expenses, and either checks our balance or uses Amex for anything not in his normal spending pattern, so we never seem to have a problem. I have all of our accounts (bank accounts, credit cards, mortgage, 401k, etc.) all set up in quicken and am able to download almost everything, so I rarely enter anything in my paper register. I pay most bills online through quicken, and if I need to write a check for a bill I will do it at the same time so I can just put it straight in quicken. Occasionally I need to write a check at some other time and will put that in the paper register and enter it next time I use quicken. I download every couple of days so my memory is always pretty fresh as to what should be there. If it has been several years since you tried quicken, definitely try it again as I think they have made a lot of changes and it is much more user-friendly and also works better with the banks now.

If you question a charge from your debit card, it is my understanding that the bank must give you a provisional credit for the funds if they are unable to resolve the issue within a fairly short time (a few days). This obviously does not work quite as easily as with a credit card where you don't have to pay the questionable charge, but you aren't out the funds indefinitely. I will say, though, that I have been using a debit card for over 10 years and have never had a problem, but have certainly had more than one incorrect credit card charge in that time.

[jtoepfert100]

Originally posted by blazedog

I just don't see why anyone wants one of those things honestly. I charge almost everything and pay it off every month - amass frequent spender points, have the convenience of not paying in cash and run no risk. With a credit card, if it's stolen, you don't have to pay the charge -- huge difference to me. When my CC statements come in, I enter them into my Quicken register but my actual bank account has

Actually, as someone who has had her wallet stolen several times, you don't have to pay the charges on a debit card that is illegally used either. I have never had a problem with my bank immediately crediting those funds.

I know this may make me sound irresponsible, but using a credit card and then paying it off at the end of the month wouldn't work for me. I'd be too afraid I would be tempted to overspend and then not be able to pay the full amount.

MISSINDI - when DH first got a joint checking account, I tried to do what you are doing and it was a nightmare. At least your DH gives you all the receipts - my DH is not so good at that. I do what a lot of others have mentioned. I check my bank account all the time online, pay my bills online and use Quicken to further keep track of things. Yes, online will only show things that have cleared but I usually know what I have spent that isn't appearing and if I'm concerned, I'll ask DH if he has anything outstanding (but I'm the primary shopper and bill payer in our house so he doesn't have too much). Sometimes I wonder if it wouldn't just be easier to have two accounts, though, and I think that suggestion someone posted above about DH having a separate charge card that gets paid off at the end of the month might be a good idea as long as you weren't concerned about overspending.

[Beth H]

It's been years since I used a check register. I also keep track of all our accounts with Microsoft Money, and I check a few times a week on-line at our expenditures. My bank now shows *all* expenditures made with debit cards, even those which are still pending. So the balance is always current. I almost never write checks anymore as I pay all my bills on-line - I maybe write one check a month.

I can't imagine doing things the "old-fashioned" way anymore after doing everything on-line for so long.

[blazedog]

Originally posted by jtoepfert100


Actually, as someone who has had her wallet stolen several times, you don't have to pay the charges on a debit card that is illegally used either. I have never had a problem with my bank immediately crediting those funds.



The difference is that with a credit card, you are NEVER out the money, even for a moment. With a debit card, your account is debited until the bank decides to reverse it. For those couple of days, every check that you write from the account will bounce and you will wind up having to get the bank to write letters of explanation -- it's a huge hassle -- significantly more of a hassle than telling the bank that charges on a CREDIT card weren't authorized.

I am no more tempted to purchase stuff on a credit card that I can't pay off that month than I would be to do anything else with my money -- if I can't afford to pay cash essentially, it doesn't get bought and my everyday savings account is for when the expected unexpecteds come around -- like $1000 set of new tires one morning:D

I still fail to see any practical benefit to a consumer for using a debit card. It costs me nothing to use a credit card and I have the use of my money for 30 days; credit card protection in case there is some problem with the merchandise plus all those great points -- My AMEX points will get me $1500 towards my remodel at Home Expo/Home Depot -- that buys some very nice faucets. :D

[MISSINDI]

OK, so I was all set to buy Quicken at Amazon, until I read the reviews. The version 2005 Deluxe has pretty bad write-ups. Which versions are y'all using?

[jtoepfert100]

Quicken 2004.

[lhall]

Originally posted by MISSINDI
OK, so I was all set to buy Quicken at Amazon, until I read the reviews. The version 2005 Deluxe has pretty bad write-ups. Which versions are y'all using?

We updated to Quicken 2005 a few months ago. I don't have any complaints, and we've been using Quicken for years (and years, and years....)

I don't write debit transactions into my paper register. I just enter them into Quicken. I haven't looked into downloading transactions directly from the bank, although we do pay bills online. Just about the only thing I write checks for are lessons for the girls since I don't see the point in mailing a check when I'm going to be there anyway.

I'm pretty good on staying on top of entering things in Quicken. Occassionally DH will hold onto a receipt for a week, but mostly he just buys gas. :D

Leigh

[MusicMom]

We got Quicken 2005 free when we bought Turbo Tax last Spring. It's completely redesigned from previous versions. I liked the older one that we had better, but I haven't taken the time to see if I can change some of the properties that annoy me.

[Kayaksoup]

We simplify things here in this house ~ never use debit, just cash or credit!

With regards to security issues and debit cards, this may be different because of Canadian Laws or something, but banks here will not reimburse funds for stolen DEBIT cards. A woman at my work had her wallet stolen, several thousand dollars removed from her account and she was stuck with the loss.

[blazedog]

Originally posted by Kayaksoup
We simplify things here in this house ~ never use debit, just cash or credit!

With regards to security issues and debit cards, this may be different because of Canadian Laws or something, but banks here will not reimburse funds for stolen DEBIT cards. A woman at my work had her wallet stolen, several thousand dollars removed from her account and she was stuck with the loss.

The banking laws aren't different in the states -- As I posted previously you have significantly less protection by using a debit card. I googled and here is an article on why these cards are a BAD idea and I still haven't received an answer as to why ANYONE would want to use it as they chiefly benefit the banks which HATE consumers who pay off their credit cards every month -- with a debit card, they have your money instantaneously.


[ PIRG's Consumer Program | Watchdog | Banking Issues ]

PIRG CONSUMER WATCHDOG FACT SHEET #6 APRIL 1997, REVISED AUG 1997
PIRG: ATM Debit Cards

1. INTRODUCTION
Look in your wallet. Pull out your ATM card. PIRG has been receiving complaints about fraudulent use of new ATM "debit" cards with Visa or Mastercard logos. The new cards can be used with or WITHOUT a secret code (PIN) in gas stations, grocery stores or restaurants, or even over the phone, just like a credit card.

When the cards are used without a PIN, it is called an "off-line" transaction. A thief who has a copy of a debit card restaurant receipt can drain your checking account, even if your card itself or PIN hasn't been stolen. Worse, under the law, your liability is higher for debit card fraud than for credit card fraud, although VISA and Mastercard have announced that their issuing banks are voluntarily reducing liability, due to pressure from PIRG and other consumer advocates. Worse, regardless of your ultimate liability, with ATM debit card fraud, the thief has your money, from your checking account, and you still have to fight to get it back from the bank.

VISA calls its ATM card a VISA CHECK CARD. Mastercard calls its card a MASTERMONEY CARD. Some banks issue one, some the other. Banks are pushing them hard, and replacing expired "plain old ATM cards" (which can be used in some restaurants and gas stations with a PIN or secret code) with these slick debit cards, without asking if you want one.

Here's why: More merchants have credit card readers than PIN-based readers and banks make more money when you use an off-line debit card than when you make a PIN-based on-line transaction (the bank gets a percantage fee, or merchant discount, from the merchant who accepts the off-line card, instead of a smaller flat fee for PIN-transactions).

For either debit card transaction, both banks and merchants make more money and face lower risks than when you write a check-- the bank saves money on check clearing costs, there is less float time, and the merchants doesn't need to worry about bounced check risks or bounced check fees.

The cards also offer consumers convenience, but at a price.



2. QUICK FACTS: WHY ATM DEBIT CARD PROBLEMS ARE WORSE THAN CREDIT CARD PROBLEMS AND PIRG'S RECOMMENDATIONS
(1) YOUR LIABILITY IS GREATER THAN WITH A CREDIT CARD: The law limits consumer liability for credit card fraud to $50. For debit card fraud, your liability is $50 if you notify the bank with 2 days of learning of the fraud, and $500 or more after two days, up to the entire amount stolen under certain circumstances.

Although the banks have announced voluntary plans to limit liability to $50 or less, it should be the federal law (as it is in Massachusetts).
(2) THE THIEF HAS YOUR MONEY AND YOU HAVE TO GET IT BACK: Your debit card usually accesses your checking account. If the thief drains it, you have to fight with the bank to get your own money back. Meanwhile, your other checks could bounce and you could face bounced check fees, bad credit reports, cash flow problems and other hassles. (With credit card fraud, you simply fight with the bank about getting disputed charges off your account, not getting your own moeny back.)

Reinvestigation timetables under the law must be toughened, banks should issue provisional refunds quickly and banks should be required to make consumers whole after fraud occurs by restoring credit reports, sending apology letters to creditors, etc.
(3) BANKS GIVE YOU THESE UNSECURE CARDS WITHOUT ASKING AND MAKE IT HARD TO GET A PLAIN OLD CARD: Consumers should have an affirmative choice whether to take on the risk and hassles of one of these cards or continue with a plain old ATM card.



Banks should be required to give consumers a clear choice between PIN only and off-line cards and consumers should be allowed to return unsolicited off-line cards to receive PIN-only cards without hassle. Banks should be prohibited from mailing unsecure cards that do not require affirmative activation.
3. THE DETAILS: BEFORE YOU ACCEPT AN ATM-DEBIT CARD FROM YOUR BANK, KNOW THE FACTS
"Easier," "more convenient," "less burdensome," and offering "greater access to your money" than checks, "traditional" ATM cards, or credit cards...this new "debit" card appears to have it all, according to the banks.

Most banks have either issued, are promoting, or are considering giving their customers a new access device known as a debit card -- often called "check cards." A debit card is an upgraded ATM card branded with the Mastercard, VISA, or other familiar credit card company logo. In addition to using it either in ATM machines or at the relatively small number of merchants with PIN-based card readers, you can use your new ATM card in "off-line" transactions at many of the thousands of locations credit cards are accepted (Although not all, for example, while most car rental firms will let you pay your final bill on a debit card, most require that you "rent" the car on a credit card).

While offering consumers definite advantages -- you can save money because you are spending money from your checking account rather than paying interest on a credit account and you can use them everywhere credit cards are accepted -- debit cards also come with their fair share of risks. Unfortunately, many consumers may learn of these risks only after they have lost money from their bank account.

1) THIEVES HAVE EASIER ACCESS TO YOUR MONEY. Banks promote the fact that debit cards work like a credit card to allow you to make purchases at department stores, entertainment locations and specialty stores -- places where you cannot usually use a traditional ATM card. The major difference between the new debit cards and traditional ATM cards? Debit cards can be used without entering a personal identification number or PIN, in what is known as an "off-line" transaction.

Unlike a credit card, however, if you lose your debit card, a thief can drain your entire bank account (and even your line of credit) -- without knowing your PIN. Furthermore, unlike a check, a photo ID is generally not required by the merchant to use a debit card.

AND EVEN IF YOU DON'T LOSE YOUR CARD, a thief who knows your card number can drain your bank account. Although on-line transactions (where a PIN is required) and ATM machine receipts include a truncated (or shortened) version of your account number, off-line receipts include the full number. Save or completely destroy all receipts.

2) DEBIT CARDS MAY SUBJECT CONSUMERS TO GREATER LIABILITY FOR UNAUTHORIZED TRANSACTIONS. While debit cards, which automatically deduct money from your checking account, may save you money over interest-bearing credit cards, there are important differences between a credit card and a debit card in terms of how much you may owe when someone makes unauthorized charges on your account.

Credit cards are regulated by the Truth In Lending Act (Federal Reserve Board Regulation Z). Your liability for any unauthorized transactions made on your account before you report a lost or stolen card is limited to $50. Notification to the card issuer is given when you take reasonable steps to inform the card issuer in person, by telephone, or in writing, of the loss, theft, or unauthorized use of your card, whether or not the card issuer does in fact receive the information.

ATM debit cards are regulated by the Electronic Funds Transfer Act (Federal Reserve Board Regulation E). Although many banks say your liability is limited to $50 with debit cards, you should ask to see their written policy. Some states, such as Massachusetts, may limit your liability to less than the Regulation E maximums. Ask your attorney general or state banking commissioner. (In late July-early August 1997, VISA and Mastercard banks announced that they would voluntarily limit liability to $50 or less, although some banks may not comply until 1 January 1998.)

Under federal ATM debit card law, Regulation E, you may be held liable for unauthorized transactions in 3 tiers:

I) $50 IF YOU NOTIFY THE BANK WITHIN 2 DAYS OF FINDING OUT YOUR CARD IS LOST OR STOLEN;

II) UP TO $500 IF YOU NOTIFY YOUR BANK AFTER 2 DAYS OF LEARNING OF THE LOSS OR THEFT;

III) POTENTIALLY, UNLIMITED LIABILITY FOR ALL UNAUTHORIZED TRANSACTIONS THAT OCCUR AFTER 60 DAYS FROM WHEN YOU RECEIVE YOUR STATEMENT CONTAINING THE UNAUTHORIZED TRANSACTIONS IF YOU FAIL TO NOTIFY YOUR BANK WITHIN 60 DAYS OF RECEIVING YOUR BANK STATEMENT.

Your liability for unauthorized transactions made before your statement is sent, and up to 60 days following, is based on the first two tiers of liability. If someone makes an unauthorized transaction on your account without actually obtaining your card, the first two tiers of liability do not apply, but you would be liable for all transactions that occur after the close of 60 days of receiving your statement and before you give notice to the bank.

3) YOU MAY BE WITHOUT YOUR MONEY FOR A PERIOD OF TIME IF A THIEF ACCESSES YOUR ACCOUNT: What makes matters much worse is that while a dispute over fraudulent use of a credit card involves money you (or the thief) allegedly owe the bank, a dispute over fraudulent use of your debit card involves you fighting to get your own money back. You may bounce other checks because your account was ripped-off. You may incur late fees or have a black mark put on your credit report because of overdrafts due to fraudulent debits. (If you do have a problem, demand that the bank makes you whole by paying all bounced check fees and accrued interest on your credit line, if any, and sending letters to any creditors and to the credit bureaus, if any of your checks bounced due to the thief. Confirm later yourself that your credit reports have been corrected -- Get the PIRG "watchdog fact sheet "credit.")

Even if the bank does not impose the maximum liability under the three-tiered structure, you can be without the use of your money for up to 10 days, and in some cases, up to 45 days while the bank investigates the reported unauthorized transaction. If the transaction resulted from a point-of-sale debit card transaction (at a merchant location), the time periods allowed for the bank to complete its investigation are doubled -- to 20 days which may be extended to 90 days.

4) YOUR BANK MUST DISCLOSE WHAT YOUR LIABILITY IS IF IT CHOOSES TO IMPOSE LIABILITY: If a bank chooses not to impose any liability on its customers for unauthorized transactions that occur on their accounts, it does not have to make any liability disclosures. If your bank does choose to impose liability, however, whether under federal or state law or other applicable law or agreement, it must give you a summary of your liability for unauthorized transactions to your debit card and the procedures it will follow to resolve unauthorized transactions before you make the first transaction on your debit card.

5) BANKS MAKE MORE MONEY FROM DEBIT CARDS: Banks make more money when you use a debit card than when you write a check. The bank gets a fee, or merchant discount, from the merchant who accepts the card, the bank saves money on check clearing costs, and there is less float time--the time it takes for a check to clear. The bank receives a percentage fee of up to 2% of every off-line transaction amount, as opposed to a flat fee of 7.5 to 10 cents for each on-line transaction with a PIN.

6) PREVENTIVE STEPS TO AVOID LIABILITY FOR UNAUTHORIZED TRANSACTION: a) Watch your checking account balance.
b) Call your bank immediately to report a lost or stolen debit card.
c) Check your statements immediately for unauthorized transactions.
d) Complain by phone and in writing to your bank as soon as you notice any transactions on your statement you did not authorize.
e) Get the full name of anyone you speak with on the phone at the bank.
f) Ask the bank for a copy of your rights in Electronic Funds Transfer Act (Regulation E) disputes.

7) WHERE TO COMPLAIN: a) If you cannot resolve a debit-card related problem with your bank, you should write to:

Federal Reserve Board
Washington, DC 20551

[Laura B]

Like Beth H mentioned, my bank's online service also shows all pending charges, so my balance is always up-to-date. We rarely write checks, and if we do I just remember that it will be coming out. We do everything online, and it has been at least 6 years since I have used a check register. I love my online banking!

[Beth H]

More merchants have credit card readers than PIN-based readers and banks make more money when you use an off-line debit card than when you make a PIN-based on-line transaction (the bank gets a percantage fee, or merchant discount, from the merchant who accepts the off-line card, instead of a smaller flat fee for PIN-transactions

My bank actually gives us a percentage of this fee each month which turns out to be a pretty good chunk of change. I almost never use the card with the PIN.

[lhall]

Last summer someone in Spain (yes, Spain) used out debit card for two transactions. We didn't find out until we got our bank statement, although our debit card would only work if we used a pin number. I even went into the bank and the lady and the branch didn't find a problem. As soon we saw the statement I called the bank. We did have to fill out some paperwork, but it was a clear case of fraud and we had our money back in our account within the week.

Leigh

[Grace]

Originally posted by blazedog


I still haven't received an answer as to why ANYONE would want to use it as they chiefly benefit the banks which HATE consumers who pay off their credit cards every month -- with a debit card, they have your money instantaneously.




Maybe because your attitude in asking the question has the connotation that anyone who DOES use them is a complete imbecile. The answer therefore, is you're just better and smarter than the rest of us chumps. :rolleyes: No one wanted to touch your question with a ten foot pole.

When Jen stuck her toe out and basically said her reason is she perhaps didn't trust herself not to overspend, instead of accepting that as an answer, you proceeded to tell us all how great you are at not overspending and that that's not a good reason. Good for you.

There are other statistics as well. Not everyone is qualified for a credit card. I think the statistic is that only 1/5th of the population can actually get a credit card. That leaves a lot of people out. People with no job, say, or a poor prior credit history. All you need is a bank account to get a debit card.

If debit cards were so horrible, very few people would bother using them. Some people prefer to pay with what they have and not even risk the possibility of the temptation of not paying the balance of a credit card off each month.

[Laura B]

Amen, Grace.

[lhall]

Originally posted by blazedog
So why do you want one of those things? I see a lot of disadvantages and no advantage.

I don't like to carry around much cash.

It's faster than writing a check.

I just don't like having a large credit card statement.

Leigh

[Beth H]

I don't like to carry around much cash. It's faster than writing a check. I just don't like having a large credit card statement.


These are all reasons for me using a debit card. I'm another one of those people who definitely would be tempted to over-spend (and would over-spend) if I only used a credit card. Restraint in spending is not something I practice easily, especially if I know the charge is deferred. When I use the debit card, I have to say, "I only can afford to spend $100 on this, not $200" or whatever.

I love the debit card, and for me that outweighs the risk.

[Gecko]

I use a debit card because I just don't like having debt loomimg over my head - however small it may be. Even for our business we use a debit card rather than having an account with the vendors we deal with. Now that may not be the smartest way to run a business but after what we have been through with a client declaring bankruptcy on us and leaving us with a mess to pay, its the way we are going for now. Of course if I could just get my husband to give me the receipts so that I can enter all of these debits ahead of balancing our account it would be a miracle :rolleyes:

[blazedog]

I didn't meant to be insulting, sorry if it came across in that way. I am an attorney and possession being 9/10th of the law, I certainly didn't want to be in a position where I had to ARGUE with a bank as to why my funds should be put back in MY account. -- I HADN'T been aware of the dangers of carrying one of those things around -- I was just glad that it hadn't depleted my account and caused me to bounce checks. Given the risk, I perceived no upside to carrying one around and cancelled it as soon as I realized the bank had issued one to me when they sent me a new ATM card.

Also, per the article, the cap on limits is $500 as opposed to $50 for credit cards and there is potentially unlimited liability in certain instances -- I would assume where there was some element of negligence.

[HejazSunKat]

Originally posted by Laura B
Like Beth H mentioned, my bank's online service also shows all pending charges, so my balance is always up-to-date

Usually it is. I just waited 10 days for my water bill, that I'd paid through an online service, to be deducted from my account on the bank's computer. I don't know what the explanation was for that. I'm not anti-technology and love the convenience of being able to check what's come through my account instantaneously as much as the next person but, call me old-fashioned, out of touch or whatever, I'm still reluctant to place my trust 100% in the almighty machine.

Originally posted by Grace
Maybe because your attitude in asking the question has the connotation that anyone who DOES use them is a complete imbecile. The answer therefore, is you're just better and smarter than the rest of us chumps. No one wanted to touch your question with a ten foot pole.

Nice. :rolleyes:

[oceanjasper]

I used to use Quicken to keep track of my bank transactions, but I ended up switching to using an excel spreadsheet. I found that I spent too much time categorizing each transaction in Quicken, although the graphs were pretty cool. On my spreadsheet, I am able to keep my balance up to date (calculates automatically when I add an item), as well as forecast future paycheques and the bills that need to be paid out of them. It is a simplified method, but it works perfect for me.

I use my debit card all the time, but I don't use online banking since having my bank account cleaned out by someone who gained access to my account online and did an online money transfer. I got the money back, but it wasn't fun, let me tell you. First of all, it was investigated as a fraud and the investigator (on the phone) was very pushy and asked so many questions over and over for several days until he felt satisfied that I was telling the truth and didn't steal my own money. Apparently, people do.

I then had to close my account and open a new one and change all of my automatic payments, write new post dated cheques, etc. Then I had to go to a notary and sign an affidavit saying that I had nothing to do with the money transfer, etc. It took almost 3 weeks before I got my money back, although it was Dec 22 when it happened which is bad timing in itself.

I used to be more obsessed about my bank balance when I used online banking. It is strange. Now I use telephone banking (on a land line) and only check my balance periodically.

[mbrogier]

Originally posted by blazedog
I didn't meant to be insulting, sorry if it came across in that way. I am an attorney and possession being 9/10th of the law, I certainly didn't want to be in a position where I had to ARGUE with a bank as to why my funds should be put back in MY account. -- I HADN'T been aware of the dangers of carrying one of those things around -- I was just glad that it hadn't depleted my account and caused me to bounce checks. Given the risk, I perceived no upside to carrying one around and cancelled it as soon as I realized the bank had issued one to me when they sent me a new ATM card.

Also, per the article, the cap on limits is $500 as opposed to $50 for credit cards and there is potentially unlimited liability in certain instances -- I would assume where there was some element of negligence.

Some of us found banks that give the same protection as a credit card.
http://www.bankofamerica.com/deposits/checksave/index.cfm?template=checkcards_tsp
It was all free, too.

If your credit card was stolen and used to the limit, you'd not be able to use the credit on that card until you called the credit card company and notified them of the fraud. I'm pretty sure it would take a day or two for them to fix it, and my debit card is the same way. (I do not use the mini cards--it is too easy to lose keys, and I don't want anyone finding my debit and credit cards on my keyring.)

I also hate writing out checks etc. It is a huge pain.

My online banking puts the debits online as soon as they are filed. I have come home from a restaurant, and they are already in the system.