Credit Card vs Debit card

Q

Quintrix

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I want to switch to FNB (from ABSA)

Main reason : Cell phones and saving money.

BUT:
A combi CC card with ABSA ( 2x CC . one for me and a copy for SO) is about R19/m -
a single CC from FNB = R50/month. This defeats the reason for switching.

THE QUESTION : are there places/situations where I may need a CC where a debit card just won't cut it?

The "credit" is not important - I can live without it.
 
Quintrix said:
I want to switch to FNB (from ABSA)

Main reason : Cell phones and saving money.

BUT:
A combi CC card with ABSA ( 2x CC . one for me and a copy for SO) is about R19/m -
a single CC from FNB = R50/month. This defeats the reason for switching.

THE QUESTION : are there places/situations where I may need a CC where a debit card just won't cut it?

The "credit" is not important - I can live without it.
Click to expand...

The 'debit' card you get from FNB, acts exactly like a credit card. I'm on a plan of R99 per month where all transactions are free (basically). The debit card you get is a Visa card, but it is a 'debit' account. You can make online payments with it (like you normally can with a credit card).

Sorry if that came across discombombulated, I am watching tv :o
 
One area where I always had to had a CC was for car hire, could not do that with a debit card but I believe that one can now do that. So no real area/place that I know of where a cc is better than a dc or rather a must have...
 
Pyro said:
Main reason for a credit card is probably online purchases?
Click to expand...


Most online purchases that I know of can be done with a DC if its enabled for such, I know not all banks enable their DC for online unless you specifically ask for it.
 
You can make online payments with these DC's. It basically is a Visa card, with all the functionality of a credit card, only on a debit account.
 
You have quite a few options.

1. Take out a cheque accounts - they come with VISA/MasterCard branded cards (Basically a credit card, without the credit)
1.1 I have an FNB cheque account with no fees - look at FNB pricing options.

2. Take out a savings account and ask for the new MasterCard debit cards (not sure if FNB has this as yet). These cards are like a credit card.

3. Take out a savings account and get the normal debit card. Then, apply for a virgin credit card (no monthly fees).
3.1 if you only need a credit card for online shopping, consider VCpay - You can create these cards on your smart phone.
 
Last I checked the one big difference with debit vs. credit cards is when it comes to fraudulent transactions. Credit card you phone the bank, they reverse the transaction and the merchant sits with the hot potato. Debit card when the money is out of your account YOU are out of pocket while the fraud department looks into your claim. For this reason alone I much prefer to use CC for everything.
 
You earn a higher percentage eBucks with a CC, but I only have a DC, with FNB you get a free overdraft (pay as you use) so that 'emergency cushion' a CC offers is still present with the FNB DC.

I have not paid any overdraft fees - only went into overdraft twice and both times for work - boss asked for a favour while we were out and both times the money was back in my account before the transactions reflected on my history. Very convenient that.
 
Get a Cheque Card not a strictly debit card.

That can be used online like any Credit Card.
 
You should get a cheque card. As it can be used for any online purchases that accept Visa cards provided it is VbyV(Verified By Visa) enabled, which is a 2min process on the online banking. So in that instance a credit card is not needed for online purchases.
 
HavocXphere said:
NB cheque cards do not carry the same fraud cover as a CC.
Click to expand...

Not sure what you mean exactly. I used my fnb cheque card to pay my dstv online for the first time this month and the fraud dept called me immediately to verify the transaction.
 
peeryus said:
Not sure what you mean exactly. I used my fnb cheque card to pay my dstv online for the first time this month and the fraud dept called me immediately to verify the transaction.
Click to expand...
Quintrix said:
Care to explain a bit more ?
Click to expand...
Both you and the supplier is protected against fraud. Mastercard/Visa collects like 6% & in return they agree to cover losses if sht goes sideways.

Last time I checked cheque cards don't have a comparable mechanism. Sure the fraud department might keep an eye on it but that isn't the same as a very solid promise that you'll get your cash back.

I had a transaction on a cheque card bomb out once & tried to get my money back. The bank operator had no fckin clue what I was talking about & sent me a CC fraud form despite my emphasizing multiple times that its not a CC. Never got the cash back.

Maybe FNB etc created their own mechanisms to compensate but I doubt it - the numbers don't work.
 
Yip. That to. Credit cards are insured. It really is the best payment method provided you clear the balance every month.
 
Get it to improve your credit score if you need it. Virgin Money's credit card you pay zero monthly fees and you get 55 days interest free(like all the others). Contrary to popular sentiment, i say a credit card is a good thing just for the reason of having available that extra credit line available if you ever need it.

I dont see anything wrong in having options. But if you are that irresponsible with money that your heart wont feel peace until the credit is maxed, then perhaps it is not that great an idea after all.
 
Another option is to get a credit card and contact the bank. Reduce the credit limit to R1000 or something. That way you cannot easily overspend money that you don't have. Put money into the CC before you use it.
 
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