Discover Debit Card does anyone have one?

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
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Mogul of Pineapples
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Postby Mogul of Pineapples » Fri Nov 06, 2009 8:17 pm

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

As far as that Fidelity credit card - it is a good card I have heard things about. For everyday spending it is probably the best cash back.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
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Primary Travel Card: Chase Sapphire Preferred


jeffysdad
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IMO, the only reasons to ever use a debit card is...

Postby jeffysdad » Sat Nov 07, 2009 7:49 pm

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.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Tue Nov 10, 2009 4:06 am

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.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

debitcard guru
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Postby debitcard guru » Fri Nov 13, 2009 6:30 pm

Mogul of Pineapples wrote: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.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Tue Nov 24, 2009 12:19 am

From what I remember they didn't change over the accounts to the wife's name and with all the commotion going on with her husbands death the fraud just was't realized for a few months after. I tried to find the story just now but couldn't locate. Sorry I wish I could post it.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

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Postby DoingHomework » Tue Nov 24, 2009 1:14 pm

mhollisco wrote: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.

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Postby DoingHomework » Tue Nov 24, 2009 1:16 pm

Mogul of Pineapples wrote: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.

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Postby debitcard guru » Mon May 24, 2010 4:41 pm

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.

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Postby Mogul of Pineapples » Tue May 25, 2010 3:11 am

Interesting CNN story. I think it has to to with everyone being terrified of using credit since the crunch. I would never pay to use a debit card unless the rewards were outstanding but that's highly unlikely since debit doesn't make them much money.

The bill might do more harm than good. A better solution would be capping the fees on small purchases to make them more palatable for the merchant. Having as max cutoff doesn't make sense to me. The credit card is essentially loaning the money to make that sale possible. Why shouldn't the merchants pay for that benefit?
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

debitcard guru
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Postby debitcard guru » Tue May 25, 2010 7:28 am

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.



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