Freedom and Safety of Using Debit Card

[eoewan]

I am Canadian. In daily life we don't use cash, instead we use our debit cards. Because I will be making my way to Arizona for 6 months less a day at the end of October, is the debit card used as abundantly in the USA as we use it in Canada? Will I be okay not taking any cash (if I do it would be a nominal amount)?

If it isn't used that much, what would you all suggest?

Cheers.

 

[VagaboundSusan]

Debit card use here is quite common in most urban areas. Be prepared with some cash (20%) of your budget for small mom and pop shops, farmer's markets and some places offer discounts for using cash. Also check ahead with your bank on withdrawal fees if drawn from US bank/ATM.

 

[user 423]

Debits are used a lot here also. It's safer to use a credit card though. Check with your bank about travelling out of country. Possible extra fees.

 

[CautionToTheWind]

Does your debit have a chip? It's regional how often debits are used. I never use my debit card unless going to the bank. I think you should talk to your bank about the risks and advice.

 

[Almost There]

Fellow Canadian here who spends 6 months less a day in the US every winter!

All of the major Cdn banks (CIBC, TD, Royal etc) have a US presence, mostly not through traditional S&B branches.

I deal with RBC for example. I have a Cdn dollar account at my local branch. When I travel in the US I have a RBCGeorgia Inc debit card attached to my US dollar bank account and I have a US Dollar charge card. My Cdn credit rating was used to be approved for the US Visa.

I use my charge card for all my gas - oh, make sure that you get a dummy US zip code attached to the credit card - I have mine set as Quartzite - long silly story - they don't care they  never send me any paper in the mail anyways...  

I could get cash at ATMs that display a variety of logos (Interac being one) without a fee but I always get my cash back at the grocery store or Home Depot. I use the cash for small purchases like the muffin at the bakery.. the farmers market etc.

That way I have a small amount of cash on  me, a debit card for things like groceries and a charge card for emergencies and for other uses of my choice.

When I cross the border I take my Cdn charge cards, debit cards etc. out of my billfold and replace them with my US cards.

If you choose to use your Cdn charge card in the US be aware that all the credit card companies charge a 2.5% currency exchange surcharge in addition to charging you the currency exchange based on the individual transaction. Because I use a US charge card, debit card and bank account I am free to try to play the currency exchange game of trying to predict which day I should move money...I'm not very good at it btw...

 

[tx2sturgis]

E, can you set up alerts on your debit card to text you, when an 'unusual' transaction is attempted?

Many banks will decline charges that look 'unusual'. (this may leave you embarrassed or cashless at a store or gas pump)

My Discover Card is that way, it will send me a text and I can reply Y or N to accept or decline the transaction.

Your bank may have something similar.

 

[Optimistic Paranoid]

As a US citizen. I would NEVER use a debit card here for routine purchases.  Much safer to use a credit card and simply pay the balance in full every month.  That's because of the very different way US law treats the two of them.  I simply can't afford to be fighting with my bank to get my money back if my bank account has been fraudulently drained of all funds.  That can't happen with a credit card. See:

[url=http://money.cnn.com/2013/12/20/pf/expert/debit-credit-cards/index.html]http://money.cnn.com/2013/12/20/pf/expert/debit-credit-cards/index.html[/url]

Obviously, as a Canadian, it may be different for you.  You need to check on Canadian law, banking regulations, and your own bank's specific policies.  In particular, as to how they apply when you are out of Canada.

 

[Scott7022]

I too never use a debit card for anything but cash withdrawals at ATM's while traveling out of country. Use my credit card, but would never use a debit at a point of sale terminal. Use standard safety and never had issue. Even here! Not sure of the Canuck policy on debit refunds for fraudulent use but the call and time difference would be a bugger.

 

[Weight]

I use one or more of my Debit cards every day here in USA. I use a credit card for cash back deals at gasoline, restaurant, and larger purchases. I have had one problem in 40 some years. That took about three days to get a new card and have the false charges removed. That was a debit card. I do not have more than 20 or 50 dollars in my wallet at any time. I like to leave cash tips at sit-down-restaurants, if I can.

 

[Trebor English]

The server gets a cash tip in full that day.  Banks pay restaurants later and keep 2% to 5%.  I make it a point to pay cash for tips and at small businesses. 

If there is a hacking with a credit card it is the bank's money that is stolen.  With a debit card it is my money.  The different starting point makes a difference in getting the money back.  If the theft happens 500 miles away from where I am I might not want to go there to file a police report etc. 

If my cash gets stolen there is no help getting it back.

 

[tx2sturgis]

I use my debit card and credit cards almost interchangeably. It depends on what I'm buying or paying for, and where I want the money to come from.

I do NOT use my debit card at a 'pay the waitress' restaurant by putting my card in a vinyl wallet she leaves on the table and then she will carry it to the back room for 5 minutes.

But otherwise, they are one and the same for Wells Fargo accounts. Wells Fargo provides the same protections for either type of card for personal use.

Most US banks probably offer the same protections, its right on the websites under security and privacy info.

I have had one issue with a WF ATM/debit card in the last 25 years and it was resolved with one phone call and all my lost money was refunded immediately.

Now...you want my opinion about Chase Bank Credit Cards? They SUCK.

I had a fraudulent transaction happen a few years ago and after many calls and lots of time on hold over a FOUR MONTH time frame, they finally refunded to me the $75 I lost.

The Thief? An unscrupulous motel OWNER at an Americas Best Value Inn in Abilene Texas. The company headquarters in Florida were NO help either.

So, HUGE Thumbs Down to Chase Bank and America's Best Value Inn.

Sternwake said it well:

Chase and Best Value: Rot in Hell.

(mods please let this post sit here for awhile before deleting...it might help someone)

 

[lenny flank]

  I simply can't afford to be fighting with my bank to get my money back if my bank account has been fraudulently drained of all funds.  

Perhaps that depends on the bank----I've been identy-thefted twice over the years, and in both instances the bank replaced all my money within 72 hours.

 

[Optimistic Paranoid]

Perhaps that depends on the bank----I've been identy-thefted twice over the years, and in both instances the bank replaced all my money within 72 hours.

I prefer not to "depend on the kindness of strangers".  Bank policies are subject to change at their whim.  Federal Law says credit card maximum loss = $50, debit card maximum loss = $500.  Since I always pay my credit cards off in full each month, there is absolutely no good reason for me to use a debit card.

 

[lenny flank]

I don't depend on their kindness--I depend on their greedy self-interest. Having lots of pissed-off customers who lose their money with the bank, is a GREAT way for the bank to lose customers. They're not that stupid. And the cost of paying back fraudulent losses is negligable for the bank, and far worth it to avoid having lots of pissed-off customers.

That said, I no longer use a credit card at all, and only use my debit card once a month to withdraw sufficient cash to last me for the month. (Unless I need the card for something like repairs to the van or replacing a camera.) I find that lots easier than paying with a card.

 

[RVTravel]

https://www.consumer.ftc.gov/articles/0213-lost-or-stolen-credit-atm-and-debit-cards

Credit Card Loss or Fraudulent Charges

Under the FCBA, your liability for unauthorized use of your credit card tops out at $50. However, if you report the loss before your credit card is used, the FCBA says you are not responsible for any charges you didn’t authorize. If your credit card number is stolen, but not the card, you are not liable for unauthorized use.
ATM or Debit Card Loss or Fraudulent Transfers.

If you report an ATM or debit card missing before someone uses it, the EFTA says you are not responsible for any unauthorized transactions. If someone uses your ATM or debit card before you report it lost or stolen, your liability depends on how quickly you report it:

 

[CityWoman]

. . . I have a US Dollar charge card. My Cdn credit rating was used to be approved for the US Visa.

Don't you mean credit card, rather than charge card? As far as I know, Visa only issues credit cards through various banks, not charge cards.

Charge cards traditionally don't extend credit, and the card holder has to pay the balance in full each month. There is usually an annual fee. Charge card issuers generally require excellent credit ratings for card holders and also offer better rewards programs than credit card issuers. AmEx and Diners Club are pretty much the only charge card issuers left.

Credit cards are revolving, which means they extend credit, hence you can pay your balance a little at a time, rack up interest, and go into debt.


For some of us, a debit card is the only option, because we don't have the credit standing for charge cards or credit cards.

 

[Almost There]

Sorry I use the term charge card and credit card interchangeably. Perhaps it's a Canadian thing...  

I have a Visa card that is issued by RBC Georgia Inc., the US affiliate of my Canadian bank.

 

[user 423]

For some of us, a debit card is the only option, because we don't have the credit standing for charge cards or credit cards.

That was my problem years ago but after just a couple of years using a secured Visa thru my credit union, I had reestablished credit.

 

[eoewan]

Almost There, quote: "I use the term charge card and credit card interchangeably. Perhaps it's a Canadian thing..." end quote
Definitely a Canadian thing. Even retailers here say charge card. LOL I'll have to get used to saying only credit card from now on. Cheers.

 

[akrvbob]

I ONLY use a debit card and don't own a credit card. For me, they are evil.

So your debit card will be fine, BUT ...

be aware that in many small towns most stores won't take either a debit or credit card for a small amount, and even then there may be a fee. When you are going to be in small towns, have cash on hand.

Quartzsite is one of those towns!