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I've seen debit card's with a points system at a credit union (just sharing so you can research) https://www.redwoodcu.org/personal/redwood-rewards https://www.

I've seen debit card's with a points system at a credit union (just sharing so you can research) https://www.redwoodcu.org/personal/redwood-rewards https://www.redwoodcu.org/personal/redwood-rewards I have no affiliation with them, had just been researching something similar a few months back. I don't personally want to use a debit card for my everyday purchases, mostly for security reasons. I figure if I only use a credit card, then if the card gets compromised I can argue with my bank over the charges rather than asking them to put money back in my checking account while the fraud is investigated. Cashback on purchases is just icing on the cake.

patrickmro 8y ago
Thanks for sharing! What we meant is that we are the first debit card with meaningful rewards that are comparable to those of a credit card. Re security: We allow you to have full control over the card for enhanced security: Ex: You can set daily spending limits, turn ATM withdraws on/off, and get instant notifications every time your card is swiped.
- ferrisford 8y ago
  Not saying it's not secure, I just enjoy a firewall between the card I use and my cash balances. I pay off the balance each month so it works well for me. I understand it doesn't work for everyone and that only using a debit card helps some people live within their means, kudos for trying to build a good product for that market.
- masonic 8y ago
  rewards that are comparable to those of a credit card But who pays for those rewards? With a credit card, my rewards are a partial kickback of the fees charged to the merchant. Those aren't present in a debit transaction, which may have just a small per-transaction fee that doesn't vary with purchase amount. Where does that money come from? Is the plan based on selling demographic or purchase history data to third parties?
  - patrickmro 8y ago
    We do a partial kick off of interchange fees as well, since we are partnered with a smaller bank this allows us to have a larger merchant fee.
jimmy1 8y ago
I have similar concerns, although my wife and I have sworn off using credit cards due to candidly our lack of discipline paying the balance off in time. Do you think things like Apple Pay with the virtual cards provide that layer of security? To any bank out there: I think if you offered a debit card that is backed by "virtual money" rather than the cardholders physical account, you would get my business in a heartbeat. The primary difference between the OP's answer is when your debit card is compromised, you are on the hook until the investigations are completed and still it is not a guarantee your funds are recovered.
- patrickmro 8y ago
  We have zero liability backed by MasterCard, so if there is a charge you don't recognize we will refund you right away and take it up with the merchant instead of leaving you with $X amount less in your bank account.
- ferrisford 8y ago
  Mobile wallets are pretty secure and when you use them to pay you aren't handing over your card number, kind of similar to using chip cards. If you're not going to use a credit card, then a debit card run though Apple or Google Pay is what I'd go for.
- patrickmro 8y ago
  Also wanted to mentioned, we offer a virtual card for online purchases as a security pre-caution.
  - ferrisford 8y ago
    That's actually pretty nifty. I think you should add another section to your landing page about security that mentions chips, mobile wallets, and virtual cards for online payments. Those are all factors I'd look at when shopping for a new bank account.
- jedberg 8y ago
  They're usually reserved for people with bad credit, but you can request a secured credit card. The limit is however much you put into an attached savings account. So you have to have the money before you spend it. It's still a credit card, you just have to put cash up front.
mey 8y ago
https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-cr... Credit Cards have better mandated federal requirements about fraud protection. Limit of $50 generically, where Debit cards are limited at $50 if reported in 2 days (which is hard to do). Some banks go above and beyond for Debit Cards but check with your bank.
deleted 8y ago
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patrickmro 8y ago

Thanks for sharing! What we meant is that we are the first debit card with meaningful rewards that are comparable to those of a credit card. Re security: We allow you to have full control over the card for enhanced security: Ex: You can set daily spending limits, turn ATM withdraws on/off, and get instant notifications every time your card is swiped.

ferrisford 8y ago
Not saying it's not secure, I just enjoy a firewall between the card I use and my cash balances. I pay off the balance each month so it works well for me. I understand it doesn't work for everyone and that only using a debit card helps some people live within their means, kudos for trying to build a good product for that market.
masonic 8y ago
rewards that are comparable to those of a credit card But who pays for those rewards? With a credit card, my rewards are a partial kickback of the fees charged to the merchant. Those aren't present in a debit transaction, which may have just a small per-transaction fee that doesn't vary with purchase amount. Where does that money come from? Is the plan based on selling demographic or purchase history data to third parties?
- patrickmro 8y ago
  We do a partial kick off of interchange fees as well, since we are partnered with a smaller bank this allows us to have a larger merchant fee.

jimmy1 8y ago

I have similar concerns, although my wife and I have sworn off using credit cards due to candidly our lack of discipline paying the balance off in time. Do you think things like Apple Pay with the virtual cards provide that layer of security? To any bank out there: I think if you offered a debit card that is backed by "virtual money" rather than the cardholders physical account, you would get my business in a heartbeat. The primary difference between the OP's answer is when your debit card is compromised, you are on the hook until the investigations are completed and still it is not a guarantee your funds are recovered.

patrickmro 8y ago
We have zero liability backed by MasterCard, so if there is a charge you don't recognize we will refund you right away and take it up with the merchant instead of leaving you with $X amount less in your bank account.
ferrisford 8y ago
Mobile wallets are pretty secure and when you use them to pay you aren't handing over your card number, kind of similar to using chip cards. If you're not going to use a credit card, then a debit card run though Apple or Google Pay is what I'd go for.
patrickmro 8y ago
Also wanted to mentioned, we offer a virtual card for online purchases as a security pre-caution.
- ferrisford 8y ago
  That's actually pretty nifty. I think you should add another section to your landing page about security that mentions chips, mobile wallets, and virtual cards for online payments. Those are all factors I'd look at when shopping for a new bank account.
jedberg 8y ago
They're usually reserved for people with bad credit, but you can request a secured credit card. The limit is however much you put into an attached savings account. So you have to have the money before you spend it. It's still a credit card, you just have to put cash up front.

mey 8y ago

https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-cr... Credit Cards have better mandated federal requirements about fraud protection. Limit of $50 generically, where Debit cards are limited at $50 if reported in 2 days (which is hard to do). Some banks go above and beyond for Debit Cards but check with your bank.

deleted 8y ago

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