Key Post Can I get rid of my credit card, now that I have a Visa debit card?

Brendan Burgess

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I have switched over to my debit card for almost all transactions now.

I have needed the free credit period rarely. I have a good overdraft facility if I need it.

The last discussion on Askaboutmoney seems to 2012

Reasons why I need to keep the credit card
Car hire can't be done with a debit card
If I do need credit, it would be handy
A good backup if the debit card gets lost or stolen
The maximum expenditure per day is €2,500 on AIB's debit card. The Credit Card limit is usually much higher.

Some benefits of having the right credit card
Some cards have benefits e.g. cash back

Downsides to having a credit card
If you are bad with money, you should not have a credit card as you will be charged interest
If you are a spendthrift, you may find it much more tempting to spend on a credit card than on a debit card
Another account to keep an eye on - not a big issue, if it's not used very often
The risk of using it an ATM machine instead of my debit card - can be avoided by changing the PIN.
Annual charge of €30


Some banks have limits on debit card transactions
Maximum single purchase on ptsb is €1,500 and daily limit is €2,500

I don't know if there is any limit on my AIB Visa debit card?

There is no extra chargeback protection on credit cards
All debit cards issues by Visa and Mastercard have the same protection
 
One of the main benefits of keeping the credit card is for internet shopping and the possibility of your card being compromised. Of which I can speak from experience and a 4 am phone call form the CC company.

If a debit card is compromised then the money related to the fraudulent transactions is taken out of your account and it may take some time to have that reimbursed by your bank.

Whereas if a CC is compromised it is not taken out of your account automatically .
 
An interesting point.

As a debit card can get compromised, then it's useful to have a credit card as back-up.

If your argument is valid, then you should pay with the credit card as much as possible, online and face to face. Is it not as easy to compromise it face to face as it is online?
 
Got rid of credit card, find debit card fine so far....we were skimmed n bank gave money back within few days but somehow took every transaction out again n we had to inform them and wait a few days ago...if u stuck for money the bank would have offered overdraft but there would have been a charge also as one card of the joint account had to be destroyed so without one for few days...
 
There are no transaction fees associated with an AIB credit card - this can help reduce bank charges, I purchase everything with the cc and then pay in full at the end of the month.
 
Credit cards can be used abroad (especially outside Eurozone) with a much higher degree of certainty than a Debit Card. The likes of VPay won't work in (for example) the US, but a Visa credit card will.
 
I have never ran an overdraft in my life,I use the CC limit as an OD facility if needed,clearing it completely at the end of each month.
 
Brendan
I am not sure if it is easier to have a card compromised face to face than online or the other way around.

However, when our card was skimmed it was for over 6,000e and we swore no more online shopping with debit cards. Also there was a real onus put on us to ensure we had protected the card involving a visit to the local Garda station to make a statement to that effect. It took a number of days to clear the whole matter up and we were about two weeks without the CC which would not have been good had it been the debit card.
 
murphaph said:
Credit cards can be used abroad (especially outside Eurozone) with a much higher degree of certainty than a Debit Card. The likes of VPay won't work in (for example) the US, but a Visa credit card will.
Click to expand...

That used to be the case. But is it still the case?

What is Vpay?

I have a Visa debit card. No one has ever asked me if it's a debit or a credit card. But I probably haven't hired a car with it.
 
Some disadvantages of relying solely on debit card:
- Daily transaction limits lower on debit card than credit card, annoying if you want to make a large purchase (expensive laptop, holiday, car etc.). AIBs limit will be similar to BOIs.
- Pre-authorisations on debit card reduce available balance in current account immediately. May not clear (be available for use again) for at least 7 days if pre-authorisation is not captured (claimed) by merchant. Particularly annoying in hotels.
- Bank charges per transaction, as pointed out above.
 
In France at the moment, my Visa Debit card not accepted by major supermarkets, some garages, some tolls. This has also happened to us in the States where some merchants (including Walmart) won't accept Visa Debit. So, if travelling, or booking stuff online for travel, must have Credit Card IMO.
 
VPay is a debit card product from Visa. Maybe it's not issued by any Irish banks currently but it's the debit card my bank in Germany issues and it does not work beyond Europe.
 
Disadvantage with CC being having to pay extra for booking holidays etc.Falcon were looking for me to pay €90+ for privilege of booking with CC.Visa debit card wouldn't let me transact over €1500 per day...
Needless to say didn't pay that €90 as that's for mugs.
 

In the USA, even though you are using a Visa Debit card, you still have to select "credit" at the terminal when paying. For foreign visitors, this just means you want Visa to process the transaction rather than one of the local debit providers that would not be affiliated with your card.
 
It's always good to have a second card as backup. Make sure the limit is sufficiently high for car hire, otherwise if your card is refused you will be forced to take out extra insurance as they will not be able to 'take' the excess from your card.
 
I used my Visa Debit card last year in Hungary to pay for a largish transaction )approx. €1,500) as I don't have a credit card. The fee charged for processing this/FX fees etc. amounted to approx. €25. This would have been much lower with a credit card.
 
Isn't the maximum debit on a debit card relatively low? A credit card is always handy for those big purchases.

A credit card is also a source of income. You don't know what the future holds and you may find yourself in a desperate financial situation. While the interest rates are incredibly high on credit cards, you may need money and be denied credit from the banks due to your situation. A credit card may get you out of that jam.



Steven
http://www.bluewaterfp.ie
 
SBarrett said:
Isn't the maximum debit on a debit card relatively low? A credit card is always handy for those big purchases.

http://www.bluewaterfp.ie
Click to expand...


I had missed this point completely.

The limit on AIB's debit card is €2,500 per day.

I have amended the first post accordingly.


Brendan
 
For large purchases like a car, it's normal here instead of using your bank card to pay by bank transfer so that gets around the limit daily limit of €2500.

My credit card limit is low as I worry about theft, so around 1200€ but if going on holiday one can add money to the account by lodging money into the credit card account. Never of course take money out on a credit card as this is generally very costly.
 
I have noticed more and more travel agents applying a 1.5% charge on paying the balance of the cost of the holiday by credit card.
There is no charge for debit card transactions, or for the initial deposit transaction.

In general I prefer to use credit card for online\phone payments but this would be the one exception.

When on holidays, I would bring credit card rather than debit card as it accepted in more places.
 
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