Any need for me to have both Credit and Debit cards?

messinkiapina

Finally got a visa debit card and am wondering if I should ditch my credit card and save myself the €40 per year stamp duty?

I only ever use my credit card when I have the funds already in my account, so being able to get something on credit isn't something I need. My main concern is that I'll be able to use the debit card everywhere I've been using my credit card. Can it be used with paypal? Do all sites that accept Visa credit cards generally accept Visa debit cards too?

dotsman

Firstly, stamp duty is €30 a year (don't know if that makes a difference to you).

In terms of having both is useful, a credit card is still better than a credit card in certain scenarios.

Firstly - protection. Although visa debit claim to offer great protection, from the experience of others, it doesn't seem to be as good. Although they appear to work in a similar way, credit cards and debit cards are actuall yvery different (almost the opposite of each other). A debit card is simply a funds transfer. When you use it, you instruct your bank to transfer money from your account to the sellers account. With a credit card, you are asking you bank to purchase the goods for you - you don't pay the seller yourself. Therefore, if there are any issues (and especially if the seller goes out of business), you don't care - you owe the bank (and this has nothing to do with a particular bank's/card's policy - legally all credit cards are this way by their very nature), and if you don't receive the goods (or if they turn out to be faulty etc), you can very easily demand the money back from your bank (and have them chase up the seller in their own time).

In terms of acceptance, in theory, anywhere that accepts visa credit cards should accept visa debit cards. However, there have been cases in the past where shops don't accept them (from reading numerous previous threads here)

You may also run into trouble with deposits for hotels and car rentals etc. Quite a few places don't take debit cards, and of those that do, most will expect you to have a large balance in your account and put a hold on these funds (leaving you with very little money in your account for the rest of your holiday!)

Also, although you currently use your credit card wisely (only spending what you have), it is a comfort to know that, in the event of an emergency, you can easily access a few thousand euro (or whatever your limit may be) in an instant if needs be.

Finally, even if you don't think any of the above is relevant to your needs today, you should look at your potential needs over the next few years. People are finding it harder to get credit cards these days, and if you were to re-apply for one in a few years, you might not be so lucky.

Ultimately, it's a personal choice. For me, I prefer to have both (and I got my first Visa Debit card 9 years ago!). Debit card for day to day purchases, Credit card for large purchases (ie furniture/electronics etc) and internet shopping.

Unregistered.

dotsman wrote: »

Firstly - protection. Although visa debit claim to offer great protection, from the experience of others, it doesn't seem to be as good. Although they appear to work in a similar way, credit cards and debit cards are actuall yvery different (almost the opposite of each other). A debit card is simply a funds transfer. When you use it, you instruct your bank to transfer money from your account to the sellers account. With a credit card, you are asking you bank to purchase the goods for you - you don't pay the seller yourself. Therefore, if there are any issues (and especially if the seller goes out of business), you don't care - you owe the bank (and this has nothing to do with a particular bank's/card's policy - legally all credit cards are this way by their very nature), and if you don't receive the goods (or if they turn out to be faulty etc), you can very easily demand the money back from your bank (and have them chase up the seller in their own time).

Is there no way to recover funds in the case of unreceived goods or fraud when using Visa Debit, like there is with credit cards?

chris85

I am the same OP I only spend what I have in my current account so CC gets paid in full every month. I deem the CC necessary for a combination of reasons such as security of access to funds if DC is stolen, or if it goes missing. This has saved me once in particular when my wallet was stolen in foreign country where without the CC (which I kept separate) I would have been in some bit of trouble.

Also booking cars for rental abroad the CC is important as they often take large deposits in the form of holds on the card.

Also useful for emergencies if car breaks down or something and need urgent repairs there and then which I may not be able to access funds from savings straight away.

For me it is worth the €30 stamp duty each year. But each to their own and with the Visa Debit cards now standard it is a decision many people will make.

dotsman

Unregistered. wrote: »

Is there no way to recover funds in the case of unreceived goods or fraud when using Visa Debit, like there is with credit cards?

Yes, but it is nowhere near as simple, quick nor guaranteed.

With a credit card, it is very black and white and legally you are protected. With Debit cards, in many cases, you're basically relying on the goodwill of Visa or your bank.

adox

I have both and since bank charges have been re introduced my Visa Debit card is nearly redundant to try and minimise my quarterly charges.

I now use my credit card for loads of things I used to use my Visa Debit card for I.e. everyday purchases, shopping etc.

The only thing I ever use my Visa Debit card for now is to withdraw money from cash machine and that is ver infrequently.

CiniO

chris85 wrote: »

Also booking cars for rental abroad the CC is important as they often take large deposits in the form of holds on the card.

I always wondered how does it work with credit card.
Is there no limit on your credit card of possible purchases monthly or something like that?

Say you have a limit of 2000 per month on your CC, and you rent a car, where deposit is 1500euro. They put this 1500euro on hold on my credit card.
Does that mean I have only 500 euro left to spend from my credit card for the remaining of the month until car is returned and deposit is unlocked from hold, or am I free to spend whole 2000 while 1500 is on hold?

chris85

CiniO wrote: »

I always wondered how does it work with credit card.
Is there no limit on your credit card of possible purchases monthly or something like that?

Say you have a limit of 2000 per month on your CC, and you rent a car, where deposit is 1500euro. They put this 1500euro on hold on my credit card.
Does that mean I have only 500 euro left to spend from my credit card for the remaining of the month until car is returned and deposit is unlocked from hold, or am I free to spend whole 2000 while 1500 is on hold?

You dont get a limit per month. The limit on a CC refers to the overall limit on the CC at any time. So the amount owed in total should not go over €2k. If you do go over this there are overlimit charges and penalty interest. They can sometimes go over due to purchases but more often go over the limit if interest is charged which brings it over.

CiniO

chris85 wrote: »

You dont get a limit per month. The limit on a CC refers to the overall limit on the CC at any time. So the amount owed in total should not go over €2k. If you do go over this there are overlimit charges and penalty interest. They can sometimes go over due to purchases but more often go over the limit if interest is charged which brings it over.

Allright - I didn't know it.
But I still wonder in case of this deposit for car rental, would that in case above, cause to use 1500 euro out of 2000 limit (provided limit on card is 2000) and leave only 500 for purchases without risk going above the limit?
Or this deposit wouldn't count unless it would be actually charged (in case f.e. car was destroyed)?