Be careful buying the VISA debit gift cards

[rudedog40]

Originally Posted by Beth
My point was strictly related to credit cards, and the use of them to "buy, buy, buy". In terms of trying to teach children values, it would be my preference to not get a child thinking in terms of having a bank card just to "blow" whatever money is on it, rather, with the cash, a child can possibly learn something about money and what to do (or not do with it). With a card, there is a set time to spend it, you have to spend it (even if you don't need to or even want to). Goal achieved for retailers and banks. Get you to spend, not save, not use hard earned money, but indoctrinate you into buying visa cards so you have no choice but to spend. It is a clear cut selling point for retailers and banks to get folks to think along those lines. What do children learn with handling visa cards?
How to spend plastic money.

Sorry Beth. You need to get out of the 60's and 70's. Debit cards are no difference than cash. They are even more convenient than cash. Nothing drives me more nuts than sitting behind someone in the checkout, and they pull out a checkbook. The least they could do is fill it out while their items are being rung up. Instead, they fill it out after the cashier is finished, then fill out their stinkin' ledger. Reminds me of those VISA commercials. Carrying cash has become a pain. You live close to your bank? If not, how do you get your cash out? Oh yean, with a DEBIT/ATM card!!! My daughters do know the value of a dollar. They have savings/checking accounts, and put a percentage of their allowance in it. As far as credit - sorry to say, it's a way of life in the 21st century. I get chastised by friends for having any kind of debt on credit cards. For me, I charge things that I want now. Sure, I can wait until I have the money saved up. But I could also get hit by a bus tomorrow. I take the old saying "You can't take it with you".

 

[teen]

actually, theres is a difference between debit and cash. a debit card you can still overspend. cash, once you're out, you're out.
ive spent more than i had in my debit account numerous times, and even gone over by as little as like $.20, and im still hit with a $32 overdraft fee. obviously it was my fault because i should have been keeping track of what i had spent in relation to what was in my account. i was thrown off several times by a gas station that doesn't take the money out of my account for like 2 weeks after i had spent the money. i wouldnt realize they didnt take that money out, and i would always be off by the amount i spent at that one gas station. thast basically why i stopped using my debit card and use only cash.

 

[renogaw]

well, thats just bad checking account practices...if you record all the transactions, and balance your check book, you wouldn't have that issue.

 

[teen]

Originally Posted by renogaw
well, thats just bad checking account practices...if you record all the transactions, and balance your check book, you wouldn't have that issue.
obviously, but when your out of cash, you have nothing left. with a debit card, you can contiune swiping even if your balance is at or below zero.

 

[rudedog40]

Originally Posted by renogaw
well, thats just bad checking account practices...if you record all the transactions, and balance your check book, you wouldn't have that issue.

Who keeps a checkbook anymore? I haven't used a checkbook ledger in over 4 years. I can go online to my bank account and see every transaction there. I don't have to write down anything. The online system keeps my account balanced for me. If I use my ATM card, go online 1 minute later, the transaction is listed on my account. If you setup overdraft protection, you don't have to worry about accidentally taking too much money out of your account.
One of my local TV stations did an expose on the gas stations and how they delay posting transactions on debit cards. Many people were unaware this happens. I know a couple of people who were burned by this. They'd go to the gas station, put gas in, and forget how much they put it. If their checking account was low on funds (getting close to payday), they didn't realize until after the bank hit them with the fines.

 

[teen]

exactly. i basically keep a tally in my head of how much i was paid vs how much ive spent. i normally login to my bank account online at least once a week just to check my balance. if a gas station didnt withdraw say $30 in gas i put in over a week ago, chances are i wont even notice it becasue i put gas in several times a week. i see my account as up $30 and then i overdraw my account.
my mom told me to link my checking account to my savings so if i go over any amount ill be covered, but i just never got around to it. i like using cash. its much easier IMO.

 

[renogaw]

sry, but balancing a check book is something i never did, and i kept a tally in my head, and i kept on overdrafting. i used to do the "oh i'll transfer everything from my savings" also.
guess what, and you've proven it, it doesn't work. there's no way you could keep all those transactions under control by just using your head. using overdraft protection is costly as well.
i'll bet your mother never told you that if you have more than 4 (maybe 8) automatic withdrawals from your savings account, there is a federally mandated charge as well.
I've never had so little money in my checking account that i could go over with a gas charge, so i'd have to take your word for it that they let you continue swiping. but... if you kept better records you'd be better off.
how do you know if you're not being double charged? i've caught the gas station triple charging me for one gas transaction. same day, same amount three times.

 

[teen]

Originally Posted by renogaw
I've never had so little money in my checking account that i could go over with a gas charge, so i'd have to take your word for it that they let you continue swiping. but... if you kept better records you'd be better off.
you're not in college with a job that pays $9/hr. obviously you shouldnt be coming close to a zero balance in your checking account. im sure you have a full time job and have a good amount of money in there at all times. thats not my case.
point is, for me, its easier to just carry cash.

 

[nel621]

Originally Posted by Beth
Just my view, but if you want to teach kids, best to teach them that "paying cash" is the best way, and avoid credit cards at all cost. Teaching kids to use credit, will just snowball into a scenario that most adults have problems handling, namely acquiring debt. A credit card prompts one to spend, since that is all you can do with it. Cash may make a kid think that there's value in saving money, or even accumulating it.
Just my old fashion view.

Well put. My feelings exactly.I always tell my kids cash is always better,it is tangible.You can see your money grow or money go!

 

[nel621]

Originally Posted by rudedog40
Sorry Beth. You need to get out of the 60's and 70's. Debit cards are no difference than cash. They are even more convenient than cash. Nothing drives me more nuts than sitting behind someone in the checkout, and they pull out a checkbook. The least they could do is fill it out while their items are being rung up. Instead, they fill it out after the cashier is finished, then fill out their stinkin' ledger. Reminds me of those VISA commercials. Carrying cash has become a pain. You live close to your bank? If not, how do you get your cash out? Oh yean, with a DEBIT/ATM card!!! My daughters do know the value of a dollar. They have savings/checking accounts, and put a percentage of their allowance in it. As far as credit - sorry to say, it's a way of life in the 21st century. I get chastised by friends for having any kind of debt on credit cards. For me, I charge things that I want now. Sure, I can wait until I have the money saved up. But I could also get hit by a bus tomorrow. I take the old saying "You can't take it with you".
I am also a merchant and to me debit cards are not the same as cash.The merchant fees are HIGHER for debit cards than credit cards and still HIGHER for gift cards.I have people coming in wanting to use their debit/credit card for a $2.00 item. I tell them no get some cash.Get real! These Visa commercials about using your check card for everything is Visas' way of making more money off of the merchants.And if your not carefull it can also be a way for your bank to charge you more money for using the "card".Some banks have limits on how many times you can use these items.People are quick to use their check card to buy gum but not too quick to use the same card to get cash at a "foreign" atm.Why? Because they get charged twice!Come on,if you're out to buy stuff get some cash.Sure if you're getting a big screen tv you won't carry 3 grand but for small stuff.And hey sometimes you can a bigger discount for cash.Just my 2 cents.

 

[rudedog40]

Originally Posted by Nel621
I am also a merchant and to me debit cards are not the same as cash.The merchant fees are HIGHER for debit cards than credit cards and still HIGHER for gift cards.I have people coming in wanting to use their debit/credit card for a $2.00 item. I tell them no get some cash.Get real! These Visa commercials about using your check card for everything is Visas' way of making more money off of the merchants.And if your not carefull it can also be a way for your bank to charge you more money for using the "card".Some banks have limits on how many times you can use these items.People are quick to use their check card to buy gum but not too quick to use the same card to get cash at a "foreign" atm.Why? Because they get charged twice!Come on,if you're out to buy stuff get some cash.Sure if you're getting a big screen tv you won't carry 3 grand but for small stuff.And hey sometimes you can a bigger discount for cash.Just my 2 cents.

I'm not saying don't carry cash. There's too many places that don't accept any kind of card for a transaction. What if their machine is broken? Can't swipe the card if it doesn't work. However, if I can use the card, I do because my bank gives me cash back on every transaction I make. Bank Of America also rounds up any transaction I make with my ATM card, and deposits the 'change' into my savings account. Kind of like keeping a piggy bank at home where you drop your change in when you empty your pockets.

 

[renogaw]

Originally Posted by Nel621
I am also a merchant and to me debit cards are not the same as cash.The merchant fees are HIGHER for debit cards than credit cards and still HIGHER for gift cards.I have people coming in wanting to use their debit/credit card for a $2.00 item. I tell them no get some cash.Get real! These Visa commercials about using your check card for everything is Visas' way of making more money off of the merchants.And if your not carefull it can also be a way for your bank to charge you more money for using the "card".Some banks have limits on how many times you can use these items.People are quick to use their check card to buy gum but not too quick to use the same card to get cash at a "foreign" atm.Why? Because they get charged twice!Come on,if you're out to buy stuff get some cash.Sure if you're getting a big screen tv you won't carry 3 grand but for small stuff.And hey sometimes you can a bigger discount for cash.Just my 2 cents.
check your agreement, debit cards are supposed to be less than a credit card IF they use the pin. Also, check your agreement, you are breaking it by not letting someone charge $2.00 and if it ever got back to them they would take the ability away from you.

 

[stdreb27]

They are all crooks.

 

[maxalmon]

Originally Posted by Beth
That is how Visa makes their money. Otherwise, what is in it for Visa to offer such? If you get back exactly what you pay out, what does Visa get?
If you just get a store card, the store gets paid by you buying from them, but Visa doesn't get any such thing.
If you don't want pay these things, and I certainly don't want to, just give cash for gifts.
Acutally Visa gets a percentage of the sale, usually around 1.75% - 3% depending on the retail stores credit rating with Visa, this rate is based on how many charge backs or problems the store has had. Example, you spend exactly $50 in store "A", when the store receives it's bank statement
it will see a $50 transaction MINUS the processing rate, I'll use a national average of 2.5% so the retailer will actually pocket ($50 - 2.5% =) $48.75 the $1.25 goes to visa for the processing fee. This is on every card that you use, (debit cards are a little different) and anyone who owns a retail store will can tell you what their processing rate is and how much the pay each month.........Online store usually pay a little higher rate

 

[renogaw]

Originally Posted by maxalmon
Online store usually pay a little higher rate
but this is generally due to not collecting the card id number. even if you type it in at your place of business, you'll get charged about 4-5% for the transaction if you don't type in the CIV. most online stores though are starting to require you to enter in the number.