Cheque card vs Credit Card??

[lucifir]

Is there really any difference (once you take the credit out of the equation) ??
Does the credit card offer more protection in terms of refunds for non-delivery,etc.?? or do they offer the same protection??

I am considering getting rid of the credit card for the cheque card, but would like to know that I would still have the same benefits!!

 

[TJ99]

Basically only the credit thing. Which is really a big thing if you think about it. If you get rid of your credit card you can only spend the money currently in your account. In other words the credit card has advantages over the cheque card, but not vice versa.

 

[lucifir]

Credit cards:
Help build your "credit record" [important to note even though you want to take it out of the equation].
Free travel insurance.

I don't care much for the credit record(in this context), but the free travel insurance is a plus for the credit card.
I mainly want to know that the protections offered by the credit card will still apply to the cheque card

 

[Mike Hoxbig]

Basically only the credit thing. Which is really a big thing if you think about it. If you get rid of your credit card you can only spend the money currently in your account. In other words the credit card has advantages over the cheque card, but not vice versa.

You can spend money that isn't in your account with a cheque card too, by taking out an overdraft facility. This also helps build your credit rating.

Obviously there is the issue of interest rates on overdraft vs credit card, but for the purposes of the discussion it's really no different.

The only significant difference I've noticed between the two is when you need to reserve funds by putting a block on it, for example when you hire a car. For this reason they only accept credit cards.

 

[Dr Who]

I would still say credit cards are the way forward, generally you get better loyalty awards but more so if you manage you credit correctly ( setup a monthly debit order for the last day and pay the entire balance due ) you will make use of free credit which may save you $$$ in the long run.

 

[InTheCube]

The only significant difference I've noticed between the two is when you need to reserve funds by putting a block on it, for example when you hire a car. For this reason they only accept credit cards.

I'm pretty sure they can do this with a Cheque Card as well. Also, as long as your card has the Visa or MasterCard logos on it, you can use it for online shopping and anywhere else a credit card is accepted. Can anyone confirm?

A big benefit of a credit card is the rewards/loyalty programme. I've found that my VISA DiscoveryCard rewards me way more than the eBucks programme. Your rewards are bigger if your vitality status is higher (blue, bronze, gold, diamond), and even better if you switch your insurance to Discovery Insure and sign up for VitalityDrive, and maintain a good VitalityDrive status.

Downsides of a credit card:
- Annual card fees (none with a cheque card)
- You have this illusion of having more money in your account/s when you don't
- Your current account doesn't truly reflect how much money you have in it. You have to subtract credit card spend to see how much you actually have.

 

[Sepeng]

1) the credit facility
2) aren't alot of online transactions only done with the CC? Like computicket, airlines, hotels? I only ever use my CC so not sure the other payment options.

WRT the protections, I'm not quite sure.

 

[Mike Hoxbig]

I'm pretty sure they can do this with a Cheque Card as well. Also, as long as your card has the Visa or MasterCard logos on it, you can use it for online shopping and anywhere else a credit card is accepted. Can anyone confirm?

Nope, they can't. With credit cards, your funds are on the card. With cheque cards, your funds are in your account. This means that they can reverse the block provided they have your credit card details. With a cheque card you can't do this since it is linked to your account, and in order to reverse a block they would need your account details.

 

[Mike Hoxbig]

2) aren't alot of online transactions only done with the CC? Like computicket, airlines, hotels? I only ever use my CC so not sure the other payment options.

WRT the protections, I'm not quite sure.

Cheque cards can be used for online transactions too, as long as it's a Mastercard/Visa with a CVV/CVC number.

 

[droplet]

aren't alot of online transactions only done with the CC? Like computicket, airlines, hotels?

i use my cheque card (mastercard) online for all sorts of purchases (including the three mentioned above).

 

[etwylite]

AFAIK there is no charge back protection on a cheque card.

I consider this quite a big plus in a C/C's favour.

and there are credit card without annual fees..eg virgin

 

[Sepeng]

Cheque cards can be used for online transactions too, as long as it's a Mastercard/Visa with a CVV/CVC number.

Thanks, seems I'm out of touch with these things. Looks like they've done quite alot to improve cheque cards.

I'm gonna guess there aren't any fees associated with any cheque card transactions as well - that's perhaps another difference I know that used to exist.

 

[Devill]

Credit cards:
Help build your "credit record" [important to note even though you want to take it out of the equation].
Free travel insurance.

Don't know if it is standard but I pay no fees i I swipe my credit card, I do however when I swipe my cheque card.

 

[InTheCube]

I'm gonna guess there aren't any fees associated with any cheque card transactions as well - that's perhaps another difference I know that used to exist.

With a cheque card (as well as debit cards) transactions fees depend on your monthly plan with your bank. You get plans with unlimited transactions and you pay a fixed monthly fee, or with no monthly fee and you pay per transaction, or you keep a minimum balance in your account and you get refunded a certain percentage (sometimes up to 100%) of your transaction fees.

I'm on the unlimited plan with FNB. I can swipe as much as I want, even if it is to buy just a can of coke. No need to worry about transaction fees.

With my Discovery Card CC I pay no transaction fees either (except R2.50 for fuel purchases), just an annual card fee.

 

[deweyzeph]

Credit cards:
Help build your "credit record" [important to note even though you want to take it out of the equation].
Free travel insurance.

Take a good look at the "travel insurance" you get with a credit card and you will see that it is as good as useless. The UK and Schengen countries, for example, will not accept the free travel insurance you get with a credit card as adequate proof of cover when considering your visa application.

 

[etwylite]

Take a good look at the "travel insurance" you get with a credit card and you will see that it is as good as useless. The UK and Schengen countries, for example, will not accept the free travel insurance you get with a credit card as adequate proof of cover when considering your visa application.

Not sure where you get your information I have been to the UK and Holland (schengen)in the last 3 months and both were happy with the cc policy from ABSA with the tickets bought online via cc.

 

[Chevron]

Is there really any difference (once you take the credit out of the equation) ??
Does the credit card offer more protection in terms of refunds for non-delivery,etc.?? or do they offer the same protection??

I am considering getting rid of the credit card for the cheque card, but would like to know that I would still have the same benefits!!

Credit cards are insured against fraud. If you comprise your cheque card it's your own problem.

 

[lucifir]

Credit cards are insured against fraud. If you comprise your cheque card it's your own problem.

the cheque card also has lost card protection!!
and both use the chip and pin ... so what other fraud?? could you give an example??
This is mainly the type of protection I am concerned about

 

[lucifir]

just and update :
contact fnb premier banking and asked them about non-delivery and their response :
"Please note that in regards to refunds for non-delivery of items purchased or disputed transactions on credit and cheque cards, we have a dispute process where client completes a credit card or cheque card dispute to dispute a specific transaction, it is then investigated by the disputes department and client given feedback once query is resolved".

So it would seem that cheque and credit cards do enjoy some of the same protection

"You can use your Cheque card for car rental, so in essence the Cheque card and credit card have similar functional capabilities, the main difference being that a credit card is a credit facility and with the Cheque card you use your own funds.

In regards to fraud on the Credit or Cheque card they both have a fraud department to assist with any suspected fraud or fraud taken place on the cards. " - premier banking fnb

 

[ViperGTI]

With regards to rewards, I've found that with FNB, the eBucks rewards on the Cheque cards are actually higher than on the Credit cards. Sure, it takes a little work to get there, but once you're on that level, you'll earn more than double the rewards. Credit cards is fixed at 1% back while Cheque cards on their highest level is 2.5% back.

With credit cards, the annual card fee will depend on when the credit card was acquired. If it was before the NCA, then it will be an annual card fee. If after, it will be a monthly card fee. I converted my credit card to the new NCA structure. Since I don't really use it and I only have a budget limit (for backup purposes), the bank deducted the annual card fees on dates when I did not expect, sending my balance over the limit, thus automatically incurring a R220 "over limit fee". With the NCA, it is a monthly fee that I'm ready for and should something happen and I do go over the limit, the banks are only allowed to charge a maximum of R10 (could have changed) for an "over the limit fee".