|Re: ot: debit cards|
Message #3 Posted by Bill (Smithville, NJ) on 21 Feb 2007, 3:37 p.m.,
in response to message #2 by bill platt
It's a freakin' credit card fercrissake!
Welllllll - maybe not. It all depends.
I think we're talking two different types of cards here (or maybe it's three or four types).
First, there is the standard credit card - visa, mastercard, Amex, etc.
Second there is the Debit Card (or in my Area MAC). This is the old card that was tied directly to your bank accounts and for many years was only usable at a bank machine.
Third is the combination Debit card. This one can come in two flavors:
Flavor One - It's still a standard debit card but can be processed through two different transaction methods. Method one is to use it as a standard debit card where the money is withdrawn directly from from the bank account and a PIN number is used. Method two is still a debit transaction, but the transaction takes place through the Credit Card Company. Only a signature is require. But the money is still taken directly from your checking account. The key difference is that the merchant is charged very different transaction fees. The Debit version is charged a per transaction cost while the credit debit is charge a varying percentage of the transaction.
Flavor Two - It's both a standard debit card and a credit card. In this case when debit is used, the money comes directly from the bank account and when credit is used, it is charged as regular credit card trasaction and appears on the credit card statement which you then pay.
I put the debit card in the same category with check cashing establishments. Only people with zero credit and often zero sense will flock to them.
Well I use a debit card where ever I might be paying by cash anyway and I definetly don't have zero credit or (I hope) zero sense. :)