Credit Card v Debit Card . . .

[trajan]

Firstly, I have read the Key Post on this matter.

I do accept that many major car-hire companies won't rent to you unless you pay by credit card. But some of them do accept debit cards.
I also accept that some outposts like Bolivia and rural China won't have their ATMs accepting debit cards yet will accept major credit cards.

But what about the stupid €30 annual fee ?
And what about the charges that accompany standard Visa cards -- i.e. Visa cards not issued by a bank but by a company like MBNA, Avant, etc ?
And what about those awful overrun charges and so on . . .?

All online buying as far as I can see is doable with a debit card.
They say that credit card buying is safer . . . but it's also much dearer in regard to transaction charges, e.g. 0.8% of transaction value by credit card using PaymentSense gateway versus 0.3% of value by debit card.

I put these point to my credit card "account manager".
To finish the argument he just offered to cover the annual fee of €30 for me if my account was still open in April 1st. With things as tight as they are, I took this offer. But I will still be soon consolidating my CC debt via a credit union loan and I can't find any killer reason to keep the credit card.


Can anyone tell me otherwise ?

 

[Slim]

I find it useful for online shopping, booking holidays, car hire and flights. Previously, rewards were good but Tesco has pretty much wiped that out. Worth the annual fee for convenience. Thinking of taking out an AIB credit card for the cash back.

 

[trajan]

Online shopping, flights, holidays and some car hire companies can all be handled by debit card.
Unless you are travelling in a backward outpost of the world.

The firmest argument I have heard to date is the security thing and the fact that debit card reimbursements for fraudulent or stick-up transactions are over a week late.

 

[PGF2016]

I was totally against them but now use a KBC credit card for the cash back.

 

[Easeler]

Lifesaver for me as a 1 man landscape gardner got a good limit in the good times 15000 all the charges are there for everyone to see and you can get cash in your bank account over phone in a working day no hassle.

 

[Lightning]

But what about the stupid €30 annual fee ?

Introduced by the government in boom times because credit card debt was growing substantially. The fee has played a part in reducing the number of credit cards in circulation.

but it's also much dearer in regard to transaction charges, e.g. 0.8% of transaction value by credit card using PaymentSense gateway versus 0.3% of value by debit card.

The maximum interchange fee for domestic debit card transactions is to be set at 0.1% of the transaction value. The maximum interchange fee for domestic credit card transactions is to be set at 0.3% - in line with the Interchange Fee Regulation.

All online buying as far as I can see is doable with a debit card.

Yeah, almost everything that can be purchased by credit card can also be purchased by debit card.

 

[hfp]

The biggest difference is right there in the name: credit - for a debit card you need to have the funds available there and then. As long as you're not the sort of person who would blow their entire credit limit the second you get the card, credit cards are fantastic for unforseen expenditure where you would not have the funds available in your current account to use your debit card, but would be able to pay it off either within the interest-free period, or within a few months at most. Once interest starts mounting though it's a dangerous sliipery slope...

In the North we also have the advantage of UK Section 75 protection on purchases over £100...