OT: Check cards vs. credit cards

[Mike B]

Assuming one pays the full balance of one's credit card each month, why
would it be advantageous to use a check card rather than a credit card? As I
understand it, there are more legal protections in using a credit card than
using a check card for consumers? Also, using a credit card, one can get a
fee-free card that gives back a %age of the spending amount in cash, thus
effectively getting a discount on everyday spending?

I'd love to hear from check card users why they prefer to use check cards.

Thanks

 

[wps]

I'd love to hear from check card users why they prefer to use check
cards.

As I understand it, there are two basic reasons why some people prefer
check (debit) cards.

- They have poor credit history and can't qualify for a credit card

- They don't have the discipline to pay off credit charges before interest
accrues.

 

[John Pollard]

As I understand it, there are two basic reasons why some
people
prefer check (debit) cards.

- They have poor credit history and can't qualify for a credit
card

- They don't have the discipline to pay off credit charges
before interest accrues.

I don't have either of those problems - thanks for the demeaning
thoughts.

I use my check card generally in places where I would have
written checks in the past; partly from habit, partly because -
at least for some time - there were merchants who did not take
credit cards but did take debit cards, but mostly because,
unlike a credit card, I do not have to sign anything to complete
the transaction - when the cashier is finished ringing up the
sale, I am already done with my part and waiting for them to
hand me my receipt and to be on my way.

 

[John Pollard]

Assuming one pays the full balance of one's credit card each
month, why would it be advantageous to use a check card rather
than a credit card? As I understand it, there are more legal
protections in using a credit card than using a check card for
consumers? Also, using a credit card, one can get a fee-free
card that gives back a %age of the spending amount in cash,
thus effectively getting a discount on everyday spending?
I'd love to hear from check card users why they prefer to use
check cards.

Curious why you didn't ask check writers why they preferred to
write checks for purchases they could have made with a credit
card?

 

[Mike B]

Curious why you didn't ask check writers why they preferred to
write checks for purchases they could have made with a credit
card?

It was a plastic-to-plastic comparison, I want to know if I missed out on
something by sending my check card back to my credit union in lieu of a
vanilla ATM card.

I never even thought that people might still write out checks (that
laborious task), show id (and what else?) if they could go plastic.

 

[Orazietti]

On the protection issue, here is my understanding: An "ATM" card can be a
check card, a debit card, or both. There are debit cards that are not check
cards. I'm not sure if I've seen a check card that wasn't also a debit card.
A debit card requires a PIN and does not require a signature. A check card
requires a signature and not a PIN. A debit card does not have the legal
protections of a credit card, but a check card does. A check card is legally
treated as a credit card, hence the signature requirement. When you pay at a
merchant, you generally select debit or credit. To use the check card, you
chose credit, not debit.

Some checks cards have introduced cash-back rewards.

The differences that I see between a check card and a credit card are (a)
the check card takes your money now, (b) the check card doesn't send you a
bill, and (c) the credit card requires a separate account.

Some people who do not qualify for a credit card may qualify for a check
card.

In the end, it could be a marketing thing. Some people just do not like
credit cards because of the word "credit." Some of those people may be
persuaded to use a check card. I believe the merchant pays the same fees for
check card transactions as they would with a credit card.

Tony

 

[Rick Hess]

Curious why you didn't ask check writers why they preferred to
write checks for purchases they could have made with a credit
card?

Because it's called a "check"out line -- not a "credit"out line.

Besides, those people writing checks are busy by always being ahead of me in
the lines.
--


Rick Hess
New Orleans
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[Rick Hess]

Assuming one pays the full balance of one's credit card each month, why
would it be advantageous to use a check card rather than a credit card?

Not the answer to your question, but I believe an advantage to a credit card
is that by using it responsibly one can improve one's credit scores. I
don't think the same advantage exists with a check card.
--


Rick Hess
New Orleans
To reply, eliminate All_Spammers

 

[John Pollard]

It was a plastic-to-plastic comparison, I want to know if I
missed out on something by sending my check card back to my
credit union in lieu of a vanilla ATM card.

I never even thought that people might still write out checks
(that laborious task), show id (and what else?) if they could
go plastic.

Sadly, there are plenty of people writing checks when they could
be using their debit cards; I stand behind most of them in
checkout lines (especially supermarkets ... where they chat with
the checkout person until well after the total is rung, then
start laboriously filling out their check).

The reason I asked my question though was because I thought you
were wondering why people were paying *now* (check or check
card) as opposed to *later* (credit card).

 

[Rick Hess]

(snip)

but mostly because,
unlike a credit card, I do not have to sign anything to complete
the transaction - when the cashier is finished ringing up the
sale, I am already done with my part and waiting for them to
hand me my receipt and to be on my way.

But instead of a signature, don't you need to enter in your security codes
and an approval of the total amount? I can't see how that saves any time
over a signature.
--


Rick Hess
New Orleans
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[John Pollard]

Because it's called a "check"out line -- not a "credit"out
line.

LOL. I love it ... and so would my father.

Besides, those people writing checks are busy by always being
ahead of me in the lines.

Can't be; they're all here.

 

[John Pollard]

(snip)

But instead of a signature, don't you need to enter in your
security codes and an approval of the total amount? I can't
see how that saves any time over a signature.

I have entered all my info before the cashier finishes recording
the sale, so while I would have to wait to sign for a credit,
with a debit, I am done when the cashier is done (if I have to
press the "Yes" button, that is practically instantaneous,
unlike fumbling around for a pen and a place to write and
actually signing). The actual amount of time is probably pretty
short which is good considering that the amount of time I had to
wait to get there was probably too long. The (apparent) time
savings is not enough to make it a major issue, just a minor
preference.

But I really got in the habit when there were places that
accepted debit cards but not credit cards; supermarkets for one.
I think I even remember that it was once illegal to sell
groceries on credit in some places, but am not sure on this one.
Anyway, I always used to write a check for my groceries; when
debit cards became available (and could be used in my
supermarket where my credit card could not), I decided to save
myself a lot of time and start using one, and have mostly just
kept it that way.

 

[Andrew DeFaria]

Sadly, there are plenty of people writing checks when they could be
using their debit cards; I stand behind most of them in checkout lines
(especially supermarkets ... where they chat with the checkout person
until well after the total is rung, then start laboriously filling out
their check).

Old habits die hard for some people (not me - haven't written a check in
like 10 years). Besides you miss that whole "shopping experience" when
you simply pay by card and go! Heaven forbid one uses one of those
self-service checkout lines (tongue planted firmly in cheek).

Anybody use good old cash anymore? I do sometimes - just to screw 'em up!

The reason I asked my question though was because I thought you were
wondering why people were paying *now* (check or check card) as
opposed to *later* (credit card).

Well a bona fide check isn't exactly "now" but it's close. A check isn't
"cashed" usually for at least a day. You could, say, buy $100 of
groceries with a check and have $0 in your account at the time. You
can't do that with a debit card.

 

[Rick Hess]

(snip)

But I really got in the habit when there were places that
accepted debit cards but not credit cards; supermarkets for one.
I think I even remember that it was once illegal to sell
groceries on credit in some places, but am not sure on this one.

(snip)

Still OT, but being a slow news day...

At the time I left CA in 1991, grocery stores there did not allow credit
cards, although I believe they have since started accepting them. When I
moved to LA, I was surprised that the grocery stores allowed credit cards
here. I wonder if this is a state-by-state allowability, since most things
technological happen far sooner in CA (and probably in every other state)
than they do here in LA.
--


Rick Hess
New Orleans
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[John Pollard]

Well a bona fide check isn't exactly "now" but it's close. A
check isn't "cashed" usually for at least a day. You could,
say, buy $100 of groceries with a check and have $0 in your
account at the time. You can't do that with a debit card.

'Course I knew that, but for the purposes of the distinction
with credit-cards, "now" was close enough.

However, you're not totally right about being able to count on
cashing a check with no money in your account. Merchants are
now able to "debitize" your check (the capability exists; not
all merchants have implemented it): when they do this, your
check works exactly like a debit card purchase; the money is
taken from your account immediately, and your check is returned
to you on the spot. So don't head off to the store with a
checkbook and no money in your account too confidently.

 

[John Pollard]

(snip)
(snip)

Still OT, but being a slow news day...

At the time I left CA in 1991, grocery stores there did not
allow credit cards, although I believe they have since started
accepting them.

Sounds right to me. They did accept them when I returned to
California in 2000, can't remember whether they did when I left
CA in 1996.

When I moved to LA, I was surprised that the
grocery stores allowed credit cards here. I wonder if this is
a state-by-state allowability, since most things technological
happen far sooner in CA (and probably in every other state)
than they do here in LA.

Yes, I do think it is by state. Perhaps California was afraid
the Hollywood folks would snort all their cash, then start
getting in real trouble by putting all their groceries on
credit.

 

[speedlever]

Assuming one pays the full balance of one's credit card each month,
why would it be advantageous to use a check card rather than a credit
card? As I understand it, there are more legal protections in using a
credit card than using a check card for consumers? Also, using a
credit card, one can get a fee-free card that gives back a %age of the
spending amount in cash, thus effectively getting a discount on
everyday spending?

I'd love to hear from check card users why they prefer to use check
cards.

Thanks

Joining this discussion rather late, I'd offer this difference:
by using a debit card (if recorded immediately in the checkbook), you
always know where you are financially and aren't surprised at the end of
the month with a credit card bill you can't pay in full.

Also, by using a debit card over a cash-back credit card, you also miss
out on the lively discussion as to whether or not the credit card cash
back should be taxable income! (heheheh)

 

[Rick Hess]

(snip) (snip)

by using a debit card (if recorded immediately in the checkbook), you
always know where you are financially and aren't surprised at the end of
the month with a credit card bill you can't pay in full.

A surprising comment within a Quicken group!

I use a C-Card, and, thanks to Quicken, I am as cognizant of my finances as
I would be if I used a debit card.
--


Rick Hess
New Orleans
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[speedlever]

A surprising comment within a Quicken group!

Good point!.. and true enough for someone using Q. But if you don't keep up
with it....

 

[Estron]

I never even thought that people might still write out checks (that
laborious task), show id (and what else?) if they could go plastic.

"Laborious": adj., now defined as writing six things: date, payee,
number amount, word amount, memo and signature. Owww! The agony of
de-fingers! The incredible consumption of 45 seconds of time!
However did we cope with such a debilitating, humiliating, oberous
burden?