Charlie and the Credit Factory - Debit Credit Cards

Debit Credit Cards

If you've ever needed a credit card and didn't have one, a debit credit card can really open some doors for you.

Debit Credit Cards vs. Credit Cards

In the beginning, debit credit cardsseemed like a good idea, especially for people who didn't have a credit card. Some people have ruined their credit to the point that they don't have a credit card they can use anymore, while others finally got rid of their credit cards when they got out of debt. They swore them off for good. This can lead to problems though when you want to rent a car or go on a cruise. You might wonder why it matters, since in most cases these places run your card through but don't charge anything to it. But the sad fact is, you can't do these things without a credit card. In most cases, these places will accept debit credit cards instead.

However, if you go on a cruise, you might find that debit credit cards are not accepted. If you aren't familiar with the process for checking in when you go on a cruise, here's how it goes. The check-in agent usually asks for a credit card. The purpose of this is to tie your credit card number in with your room key. That way your room key is the only thing you have to carry with you on the ship. At the end of the cruise, whatever you charged with your room key is automatically charged to your credit card. Many cruise lines will not accept debit credit cards for this. If you want to pay for your purchases at the end of the cruise using cash, check or debit card, you have to complete a separate form.

In addition, debit credit cards and credit cards are not as interchangeable as you might think. Credit cards give you a lot more protection from fraud than debit credit cards do. If someone steals your credit card, you are only liable for the first $50 of unauthorized charges. In addition, if you're able to notify your credit card company before any fraudulent charges occur, you might not be liable for any charges.

With debit credit cards, the laws are similar. You're only liable for the first $50 in fraudulent charges but onlly if you notify your bank within two business days of discovering that your card was lost or stolen. Plus (and you may not realize this) it's easier for people to steal debit credit cards. There's a new device that enables waiters or waitresses in a restaurant to steal your debt card number and make purchases online. (Most online retailers don't require numbers from the signature panel of debit cards like they do with credit cards.)

To make good use of your debit card, only use it to purchase things at a store. Never use it in a restaurant or online. Visa debit cards are fine.