Is it cheaper to use Debit card than credit card?

Question

When I go to restaurant, or buy things in a supermarket, or whenever I spend my money, is it cheaper to use my Debit card than my credit card?

for example, would the meal cost more expensive if I use my credit card? would the things I buy from stores cost more if I use my credit card rather than my debit card?



one more question.

If I rent an apartment in a city, can I pay my monthly rent with my credit card? would they charge me more if I use my credit card?


thank you so much!

Answer 1

There is no difference in cost of the items, so long as you pay your credit card bill off within one billing cycle. If you fail to pay off your bill each month, then you will accrue interest and then a credit card will be more expensive. If you overdraw your checking account with a debit card, then that option will be more expensive. It's more about how you manage your money than the cost of each card. On a side note, a debit card is cheaper for the merchant to process, but you won't see the benefit of that.

For rent, it is possible to pay with a credit card for some apartment complexes. It is usually processed through a third-party, and they will charge you a convenience fee and also possibly a percentage of the payment to use their service.

Answer 2

Please, add to the very good answers you have seen, that debit card purchases sometimes include a small fee to transfer the funds from your account. This is usually a relatively small, fixed fee, around a doller or so.

So, consider, that if your credit card charges 18% interest, a ten dollar purchase will cost you an additional $1.80. (not exactly, it depends on how you pay off your credit card debt) On the other hand, if your debit card purchase has a one dollar fee, the debit card is cheaper.

A twenty dollar purchase with a credit car will cost you, again, 18%, so it will be $20 plus $3.60, while the one dollar debit card charge means the cost will be $20 plus $1, still cheaper.

Regarding the apartment rent: If they do accept the credit card for payment, federal law prohibits them from charging you more for using the card. But there is a loophole for them. They may offer the purchase (or rent) for a specific price, but give a discount for cash.

It's a very subtle, technincal differece, but, there it is.

Answer 3

Much depends on your bank. Some charge fees on debit card usage and some don't. Some stores will charge a fee if you use a debit card. A store can't charge a fee on a credit card and banks don't either. A credit card is great if you can pay it off monthly and if it gives you a percent back.

I have an AMEX card issued by Costco that costs nothing, and gives 1% back on everything except, 2% on travel, and 3% in reataurants. You just need the discipline to pay it off each month or the interest will take away the gains.

Answer 4

Going to a restaurant your not going to pay more for the meal, but you will have to pay interest charges to the credit card company. Use your debit card which should have a Visa or Master card symbol on it. This is the best way because money comes out of your checking account and it is processed through the same credit card network.

Smaller places like gas stations will charge a 25 or 50 cents for processing a debit card. Use the debit card but have it processed as a credit card, this way you wont get charged the extra 50 cents.

Paying rent with a credit or debit card only works with larger property management companies that are setup to handle that.

What I do is that I set up my mortgage payment as a recurring payment every month from my banks bill pay site. This is different from giving the company my personal account number which I never want them to have.

Instead I setup a recurring monthly payment for my bank to pay my mortgage. The bank sends a bank check every month and my mortagage company does not have my peronal checking account number. This is so much easier to cancel if I have a dispute.

Answer 5

You can pretty much pay for anything with the credit card. It's checaper to use the debit card though. The debit card takes money you already have- right out of your bank account.
A credit card is more like a loan- and they charge interest. So you pay extra to have them give you the loan.

Answer 6

A debit card uses the funds you have in your bank account. A credit card is, in essence, a loan from the card issuer. Therefore, using a debit card is sensible. I would avoid a credit card at all costs, if you can.

As for paying your rent with a credit card, I doubt you will be able to do that.

Answer 7

Same Cost:

Debit - money you have in your account
Credit - Money you pay as a bill at the end of the month.

The advice of avoiding credit cards at all cost is not a good one. There is nothing wrong with credit cards as long as you pay off the balance each month. In fact using credit cards wisely is very good for your financial situation -- it builds up your credit score which will greatly help you in getting better loans in the future. Responsibility is key, credit cards charge no interest, -- as long as you pay it ALL off each month.

Answer 8

With credit cards you have to pay interest. Debit cards take out the money you already have.

Answer 9

The credit card will cost you more if you don't payy off what you charged.

The extra fee for using a credit card to pay rent depends on the rental company, they may charge fee???

Answer 10

same cost for either debit or credit card at point of sale.Check with apt. manager to see if you can se credit card. Additional fees charged to accept credit cards is not legal.