Thread: Discover Debit Card does anyone have one?

1. if merchant gives discount for cash/debit, like my liquor store down the street does. (It's a 5% discount. They're allowed to do this; they're just not allowed to charge more for credit transactions.)

2. to manage spending.

Otherwise, the security, rewards and other card benefits (buyer protection/extended warranties, etc.) are vastly superior with a credit card, not to mention that you get the float.

I have three debit cards for different checking/savings accounts and I NEVER carry them (except when I'm going to the liquor store). On one of the cards I got the bank to deactivate the signature-only transaction function to enhance security. The other two banks wouldn't do this. However, one of them (Chase) gave me a plain-vanilla ATM card to use while the other two refused to do this. Debit cards scare me, in case you couldn't tell.

I've read where many people have said whenever they've had a problem with a debit card their bank quickly corrected it/replenished the money, whatever. I just don't understand why you would risk it. When you buy with CC, you keep the money in your pocket until everything is hunky-dory.

Originally Posted by Mogul of Pineapples

I'm also scared of debit cards. They don't carry the same protection as credit cards because those fall under different federal laws which require the customer to not be held liable for more than $50 in fraudulent charges, but of course most banks waive this and give you $0 liability. I have read horror stories involving debit cards, such as an old woman whose husband died and in the 3 months after someone was scamming his debit card. She didn't catch it until months later and the bank refused to refund the money because they claimed it was her fault for not looking at his monthly statements sent in the mail. I don't recall the exact amount that was stolen but I do remember it was a lot - well over $10,000.

I'm surprised more stores haven't started offering cash discounts. You hear 7-11 always rallying against the merchant fees, why not just offer a cash discount of 5% like that? I'm sure that would get a lot more people to pay with cash/debit.

Didn't she get the checking account changed over to her name only? If so, it is the banks fault for not canceling the debit card, when he died. Also, A special account should be set up for the estate in his name. So, the correct bills can be paid. I never read that story. Canada and U.S. have different laws when it comes to debit cards.

Originally Posted by mhollisco

Fidelity does offer a Visa debit card (Fidelity Investments: Site Search). There are no rewards, but it claims to be able to be used for purchases "wherever VISA is accepted".

As a merchant you are obligated to accept ALL cards with a Visa logo if you accept any. It does not matter if it is credit or debit, gold, silver, black, whatever.

Originally Posted by Mogul of Pineapples

Yeah debit cards will rarely give rewards because the processing fees are so much lower so they would be losing money to do so.

There was a story on CNN yesterday that debit cards might start having rewards...and fees. People apparently want this and the card companies need another source of money as they get stricter on credit and peopel stop spending on their cards.

In the U.S.

The rules may be changing for debit & credit cards, you may end up losing your rewards. We have to wait to see what left after the U.S. House & Senate has through the bill difference.

The bill will allow minimum & maximum purchase for credit & debit cards. However, the merchant won't be able to have a minimum purchase for pin based debit card if they take pin based debit cards. I could be wrong on this.

Merchants could refuse debit & credit card for bank that have 10 billions assets but the would have to refuse all of them, they couldn't pick & choose but still have to take smaller banks & credit union credit & debit card. Discover & Amex the rules will not apply. If I understand the bill correctly.

Mogul, I agree somewhat with you, the merchants are trying to pass the fee onto the customer. The fee is tax deductible. If it is passed on to customers the fee won't be tax deductible.

However, I do believe merchants should get the same rate system wide. That is the real problem. Each merchant is charged differently according to different factors. A lot business can't get the same rate as Wal-mart can. The reward cards make the rates higher. If you notice on rewards programs it says excluding foreign transactions. That because Mastercard/Visa can't charge higher interchange rates for those transactions.

Another thing some business don't realize or the merchant processor does not want to do it.

(This applies to the U.S. only do to the Wal-mart lawsuit)
Merchants can take only Credit Cards and not signature based debit cards.
Merchants can take only signature based debit cards and not Credit cards.
The key is the terminal must be set up this way & the signage must be correct.

Vermont now allows minimum card usage amount, maximum $10.00 if I understand that law correctly.