Do You Use Debit Cards?

Blogging away debt has some interesting insights on consumers who use debit cards. When she went to return an item at Walmart she asked for the credit back on her card. Much to her surprise she learned that her debit card information was stored within the bar code of the receipt-as it turns out the card information is not on the bar code but rather the transaction!

On another note concerning debit cards-banks are raking in tens of millions of dollars in fees from customers who don’t keep good track of their debit purchases. Most banks will gladly pay the merchants and charge you $35 a whack. If you don’t keep meticulous records-go back to the credit cards!

4 Responses to “Do You Use Debit Cards?”

  1. Kever says:

    That is very interesting – thanks for sharing, I didn’t know that info was saved on there either. And I agree that the fees the credit card companies charge are amazing – the rewards programs on many cards are designed specifically to drive up these profits. I do some work with http://www.unfaircreditcardfees.com and the amounts the make on interchange fees is over $30 billion a year. Every consumer needs to keep track of their purchases whether they are credit cards or debit.

  2. HMG says:

    Despite the drawbacks of debit cards, they proved to be instrumental to me when I first moved to the U.S. Getting a credit card in the U.S. is quite difficult compared to some other countries (if you didn’t grow up here). Thus, being able to use a debit card rather than my overseas credit card saved me hundreds of dollars of foreign currency transaction fees (that I would have otherwise had to pay).

  3. Kever says:

    Thats great, I also think that debit cards are a lot safer than credit cards too for exactly the same reason – the fees they have are a huge cost. The profits credit card companies make with their fees continues to grow and is how many of them make their money – not just the interest they charge. And like I said before, merchants and small businesses also get whacked by these credit card fees. Consumers really deserve to know more about all the fees they’re getting charged out there.

  4. Steve Mertz says:

    Thanks for your input Kever and HMG-I had not really considered how brutal it must be to get credit in the U.S. when you first come-Thanks for your thoughts!

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