5 ms·

Yeah, you don't call Uber in this case. You immediately call the card issuer and report fraud. In the case of debit charges, reacting quickly is absolutely ke

Yeah, you don't call Uber in this case. You immediately call the card issuer and report fraud. In the case of debit charges, reacting quickly is absolutely key. Always pay with a credit card, it's much easier to reverse this kind of stuff versus a debit card. There is literally no good reason to ever use a debit card.

oarsinsync 7y ago
> There is literally no good reason to ever use a debit card Unless you're trying to get out cash from an ATM, or make any other cash-advance-like purchase. Then there's a really good reason to use a debit card instead of a credit card. It's the only time I use my debit card.
- linuxftw 7y ago
  I was going to make this distinction, but didn't. You could read it as "... for purchases" I suppose.
nothrabannosir 7y ago
Note: in the UK, advise is to avoid using your CC over 25% of your limit. Apparently this might negatively affect your credit score. One source: https://monzo.com/blog/2018/08/08/better-credit-score/ https://monzo.com/blog/2018/08/08/better-credit-score/ , a bank’s blog, but I’ve seen it in other places. Never from the horse’s mouth, though.
- Dayshine 7y ago
  What relevance does your credit score have to day-to-day life in the UK? As far as I can tell mortgages are dependent on you having OK credit, not good credit. You don't seem to get better rates dependent on your credit score. Credit card rates are irrelevant, you shouldn't be carrying a balance. What else do you really need a credit score for?
  - linuxftw 7y ago
    Some people have a Pavlovian response to anything with credit score. The propaganda has worked. In the US, we have countless TV commercials about "Check your credit score!"
astura 7y ago
>There is literally no good reason to ever use a debit card. A good reason would be if you don't have credit cards because you have serious problems controlling your spending and you're at a place where you can't pay with cash, such as an unmanned gas station, payment terminal, on a plane, a cash-less business, etc. I agree with the overall point, either use cash or use credit. Debit only if cash and credit aren't available.
- hunter2_ 7y ago
  Someone should come up with a credit card that has a dynamic hard limit connected to a checking account balance. Paid daily, too, so the checking balance is almost always caught up. Seems like it would meet the needs of those people while letting them benefit from protections, rewards, etc. Any reason this couldn't work? Does it exist already?
  - rhcom2 7y ago
    I believe you're describing https://privacy.com/ https://privacy.com/ Lets you generate new debit card numbers with hard limits on the amount the card can spend. I really like them for tracking repeating payments.
  - mcv 7y ago
    > Someone should come up with a credit card that has a dynamic hard limit connected to a checking account balance. You mean a regular bank transaction card? Is that not something that exists in the US? I always find the American reliance on credit cards somewhat bizarre. Not having an alternative would explain it, I guess.
    - sethhochberg 7y ago
      This is called a debit card in the US, and almost everyone has them - but the key distinction between a debit card and a credit card is that the debit card is a direct link to your bank. People like using credit cards (or charge cards, like some Amexes) to buffer transactions between the bank and the merchant, so if the merchant screws up there is time to resolve the issue before the credit bill comes due. If a merchant screws up with your debit card, or it gets skimmed/stolen, the only limit to abuse is how much money is in your checking account. If you just got a direct deposit from your employer and are expecting your rent payment to pull from that account today, but your account was drained because your debit card got skimmed at a gas station... not much you can do.
Wowfunhappy 7y ago
I use a debit card because it makes it much easier to manage my finances. As soon as I pay for something, it's immediately deducted from my bank balance, so I can always see exactly how much money I have. If I screw up and try to spend above my balance, the transaction gets blocked, because I have overdraft protection turned off. (And, I have money in other accounts for emergencies.)
- linuxftw 7y ago
  This is convenient, until someone steals your card number and you spending power goes to $0. This really sucks when the rent/mortgage is due, because oops, check bounced (which is a felony in my jurisdiction). Credit cards are also subject to holds. It might be convenient today, but it's like driving around without your seat belt on. It might allow you to enter and exit the vehicle quicker, but that's not really the point.
  - Wowfunhappy 7y ago
    This is why I have more than one bank account! :)
tialaramex 7y ago
And get a good bank! The bank that offers me 0.2% more interest isn't worth it because their customer service is reprehensible garbage. When something goes wrong my good bank - First Direct - are going to answer in 2-3 rings, and they're going to fix it, their founding philosophy (I happen to know some of those founders by chance) is that customers must feel "totally taken care of", if the customer wants a £2M mortgage at 2am on a Sunday, then you can't tell them "Oh I'm sorry the mortgages team only works 9-5". I have never come off a call to them thinking they should have done more or done it faster, on the contrary I'm often surprised how effective they were able to be. Everything about this approach can be replicated. If every bad bank loses its customers we all get better banks.
mcv 7y ago
> Always pay with a credit card, it's much easier to reverse this kind of stuff versus a debit card. There is literally no good reason to ever use a debit card. What is a debit card exactly in the US? I'm familiar with US-style credit cards, and find them horrible, expensive and insecure. I normally pay simply with my bank card, and online I prefer to with through iDeal bank transfer. Unfortunately that's not supported internationally, so I have a credit card only for international online payments. I would not own a credit card otherwise.
- linuxftw 7y ago
  A debit card is tied to a bank acount (or some other account) that has actual funds in it. It's same as a check. Once it's cleared, it's quite difficult to get the funds back. A credit card is different. If a transaction is submitted for reversal within the allotted time period, the charges are simply reversed. In the case of a fraudulent debit transaction that gets disputed, your bank has to file a claim with the other bank, and somebody (possibly other than the merchant) is taking a loss. Banks don't like that. Credit card reversals mostly result in the merchants taking the loss, and the banks will usually side with a consumer.

oarsinsync 7y ago

> There is literally no good reason to ever use a debit card Unless you're trying to get out cash from an ATM, or make any other cash-advance-like purchase. Then there's a really good reason to use a debit card instead of a credit card. It's the only time I use my debit card.

linuxftw 7y ago
I was going to make this distinction, but didn't. You could read it as "... for purchases" I suppose.

nothrabannosir 7y ago

Note: in the UK, advise is to avoid using your CC over 25% of your limit. Apparently this might negatively affect your credit score. One source: https://monzo.com/blog/2018/08/08/better-credit-score/ https://monzo.com/blog/2018/08/08/better-credit-score/ , a bank’s blog, but I’ve seen it in other places. Never from the horse’s mouth, though.

Dayshine 7y ago
What relevance does your credit score have to day-to-day life in the UK? As far as I can tell mortgages are dependent on you having OK credit, not good credit. You don't seem to get better rates dependent on your credit score. Credit card rates are irrelevant, you shouldn't be carrying a balance. What else do you really need a credit score for?
- linuxftw 7y ago
  Some people have a Pavlovian response to anything with credit score. The propaganda has worked. In the US, we have countless TV commercials about "Check your credit score!"

astura 7y ago

>There is literally no good reason to ever use a debit card. A good reason would be if you don't have credit cards because you have serious problems controlling your spending and you're at a place where you can't pay with cash, such as an unmanned gas station, payment terminal, on a plane, a cash-less business, etc. I agree with the overall point, either use cash or use credit. Debit only if cash and credit aren't available.

hunter2_ 7y ago
Someone should come up with a credit card that has a dynamic hard limit connected to a checking account balance. Paid daily, too, so the checking balance is almost always caught up. Seems like it would meet the needs of those people while letting them benefit from protections, rewards, etc. Any reason this couldn't work? Does it exist already?
- rhcom2 7y ago
  I believe you're describing https://privacy.com/ https://privacy.com/ Lets you generate new debit card numbers with hard limits on the amount the card can spend. I really like them for tracking repeating payments.
- mcv 7y ago
  > Someone should come up with a credit card that has a dynamic hard limit connected to a checking account balance. You mean a regular bank transaction card? Is that not something that exists in the US? I always find the American reliance on credit cards somewhat bizarre. Not having an alternative would explain it, I guess.
  - sethhochberg 7y ago
    This is called a debit card in the US, and almost everyone has them - but the key distinction between a debit card and a credit card is that the debit card is a direct link to your bank. People like using credit cards (or charge cards, like some Amexes) to buffer transactions between the bank and the merchant, so if the merchant screws up there is time to resolve the issue before the credit bill comes due. If a merchant screws up with your debit card, or it gets skimmed/stolen, the only limit to abuse is how much money is in your checking account. If you just got a direct deposit from your employer and are expecting your rent payment to pull from that account today, but your account was drained because your debit card got skimmed at a gas station... not much you can do.

Wowfunhappy 7y ago

I use a debit card because it makes it much easier to manage my finances. As soon as I pay for something, it's immediately deducted from my bank balance, so I can always see exactly how much money I have. If I screw up and try to spend above my balance, the transaction gets blocked, because I have overdraft protection turned off. (And, I have money in other accounts for emergencies.)

linuxftw 7y ago
This is convenient, until someone steals your card number and you spending power goes to $0. This really sucks when the rent/mortgage is due, because oops, check bounced (which is a felony in my jurisdiction). Credit cards are also subject to holds. It might be convenient today, but it's like driving around without your seat belt on. It might allow you to enter and exit the vehicle quicker, but that's not really the point.
- Wowfunhappy 7y ago
  This is why I have more than one bank account! :)

tialaramex 7y ago

And get a good bank! The bank that offers me 0.2% more interest isn't worth it because their customer service is reprehensible garbage. When something goes wrong my good bank - First Direct - are going to answer in 2-3 rings, and they're going to fix it, their founding philosophy (I happen to know some of those founders by chance) is that customers must feel "totally taken care of", if the customer wants a £2M mortgage at 2am on a Sunday, then you can't tell them "Oh I'm sorry the mortgages team only works 9-5". I have never come off a call to them thinking they should have done more or done it faster, on the contrary I'm often surprised how effective they were able to be. Everything about this approach can be replicated. If every bad bank loses its customers we all get better banks.

mcv 7y ago

> Always pay with a credit card, it's much easier to reverse this kind of stuff versus a debit card. There is literally no good reason to ever use a debit card. What is a debit card exactly in the US? I'm familiar with US-style credit cards, and find them horrible, expensive and insecure. I normally pay simply with my bank card, and online I prefer to with through iDeal bank transfer. Unfortunately that's not supported internationally, so I have a credit card only for international online payments. I would not own a credit card otherwise.

linuxftw 7y ago
A debit card is tied to a bank acount (or some other account) that has actual funds in it. It's same as a check. Once it's cleared, it's quite difficult to get the funds back. A credit card is different. If a transaction is submitted for reversal within the allotted time period, the charges are simply reversed. In the case of a fraudulent debit transaction that gets disputed, your bank has to file a claim with the other bank, and somebody (possibly other than the merchant) is taking a loss. Banks don't like that. Credit card reversals mostly result in the merchants taking the loss, and the banks will usually side with a consumer.