Debit vs. Visa?

Question

I've always put my purchases on visa, but I've noticed that some people choose to pay by debit. Is one method better than the other?

Answer 1

A debit card with right bank (cibc) wil cost you nothing to make the purchase but a visa card starts colleting iterest as soon as it is used.By maitaining a balance on your account you are paying approximatly 3% per month for nothing.

Answer 2

Many people use debit cards because they're only spending the money they already have. Credit cards, on the other hand, are - essentially - a short term loan whose approval is based on how "creditable" your payment history is.
There are two potentially serious points about debit cards that you should consider. The first is that, as others have written, there may be hidden charges for using the card. Sometimes, the charges come from the bank but many others come from the POS (point of sale) - or the store you are making a purchase from. You should ask your bank about any charges they will apply against your bank account for debit purchases. Stores that charge extra will have that fact stated on the debit pad when you make the purchase. While you are free to decline paying the charge, the transaction itself will then be cancelled. To avoid that nonsense, ask before you make the purchase whether there are any extra charges for using your debit card.
The second point surrounds the service fees of your bank account itself. For example, many banks require their customers to maintain a minimum balance before any service charges are applied. This means that while you use your debit card to make purchases, if that purchase brings your bank balance below the minimum for service charges, then you will be dinged for it! Again, go and find out exactly what those limits ar on your bank account.
Credit card companies tend to charge a king's ransom in interest on any unpaid balance so using a credit card is only sensible if you always pay the whole bill entirely.

Answer 3

Both are effective ways of purchasing, the difference is how you handle each. Debit cards are obviously the better choice so that you only spend what you have, however depending on the type of Bank account you have, you can generate high service charges if you pay per debit transaction. If this is the case, using your VISA can definitely save you some money, most VISA's allow a 21 day grace period from the purchase date prior to charging interest. If you can discipline yourself to pay off the VISA every month, you can save yourself some money by only paying for 1 debit transaction from your bank account (to pay off VISA) instead of several (for each purchase)...its about discipline!!

Answer 4

One method is not really better then the other, I think it would be just personal choice. I choose not to use debit, because of the service fees charged for evey transaction and if I was to exceed what is in my account, which I have never done, it would decline the transaction.
I prefer to use my credit card, because it offers me rewards for using it, there are no transaction fees, service fees or annual fees. My credit card has a high limit, so I am able to purchase everything on it and make the most of my rewards program and just pay off the balance every month, so that I don't accumulate interest. The other nice thing about a credit card is that if you find yourself in a bind and need to have access to extra money that is not available in your bank, you can carry the balance on your card, until you have the money pay it off.

Answer 5

If you pay by Visa & it works great for you then stick with what you like & know. Personally I still pay by cash, that way if I don't have the money to spend then I don't buy. Course I don't carry cash around all the time... only when I know I'm headed out to buy. Otherwise it stays in the bank, collecting interest! I use debit cards & prefer them over credit cards, but I don't have to pay extra charges with my bank & the credit card is used very little... I don't like waiting for the credit co. to issue a bill, cause I might forget to pay it or may not have the funds on hand, & then I'm in deep with the interest charges they criminally get away with to charge everyone! Like I said, do what's comfortable for you.
P.S.- there is a new trend for certain shops, co.'s to charge a fee for the transaction to take from your debit acc. on top of the banks fee. If you try debit always ask when buying if they charge this fee? Sadly, everyone is nickel & diming us out of our hard earned cash.

Answer 6

Well, there are several factors to consider. The biggest being do you have the cash "in hand" as it were to pay your credit card balance to avoid interest charges?

Many credit cards offer incentives such as points, miles, or cash back. Debit cards withdraw directly from your bank account and you are tapping into your allowance of transactions covered under your monthly fee (or in some horrendous cases being charged for every single transaction you make).

If you are accumulating a balance on your credit card and not paying it off, however, then you are paying far more in interest charges than meagre banking fees - but this does not sound like the case.

Answer 7

It is fine to make purchases on your visa as long as you are paying the balance in full every month so you don't get charged for interest. If you are not paying your visa balance in full every month, then I suggest using a debit card, since this is linked to your checking account you will not be able to make purchases that you do not have the funds for. Most debit cards do not have a usage fee for purchases since banks get a certain % back from the retailer when you swipe your card (exchange rate).

Answer 8

I know with my bank if i use debit instead of visa i get charged a fee. THere really is no big difference just that debit is taken out as soon as the purchase happens

Answer 9

I always use debit, unlimited transactions, for a fee of course. If cash is a little low, I will use a credit card and pay it off as soon as I can. Big purchases go on the credit card though.

Answer 10

As long as you pay off the credit card every month there is no difference.

If you are asking in regards to debit cards with major credit card endorsments, some banks will charge fees if you use one or the other. If a bank has an arrangement with the credit card company to get a kick back of the fees the retailer gets charged, or a no fee arrangement they prefer you to use credit. If they do not, then they prefer you to use debit because they do not have to pay anything for the transaction that way.

Answer 11

Cash is still king. You will spend less when those dollar bills actually have to leave your wallet. With debit or credit, its too easy to to rack up unnecessary purchases. Get two credit cards, one with a higher limit that you do not use, but take on holidays, etc. and one for everyday with a limit of of just 500 dollars. Make a cash payment mid-month for unexpected payments so your bill doesn't get too high. No one likes a thousand dollar bill at the end of the month.