credit card vs debit
 

i will be travelling to norway in 2 weeks from the us... I need some help. which would be better to use credit cards or debit/atm. who will charge me more for exchanging

bulldog: I think I will be the first of many to tell you this - debit cards are nearly always better to obtain cash when travelling, credit card advantage depends on the arrangement with your bank. You should check out the costs as soon as you can to give you piece of mind.

I really encourage you to use the "search" box on your screen to find previous posts about this topic. There have been many.

p.s. Don't forget to take a brolly if you're going to Bergen.

It all depends upon your bank. For your debit card, the money will come directly out of your checking account. My bank doesn't charge me anything to do the conversion. Some banks charge between 1% to 3%, plus they charge you a fee just for the ATM transaction. Check with your bank.

If you live on the East Coast, Commerce Bank in NY/NJ/PA/VA/CT does not charge anything for this transaction -- they give you the daily interbank rate..

Use the ATM card to get spending cash -- something you wouldn't use a credit card for -- taxi, ice cream, coffee/snacks, drinks, etc..

Credit Card companies charge, usually, the 1% conversion fee. That's the VISA/Mastercard fee to convert your charge into $$$. Some credit cards add on to that, as much as an additional 3%. Again, check with your credit card company.

Use the credit card for all your major purchases, rental car, hotel, restaurants, etc. ((b))

To get cash - use your debit card. For charging meals/hotels/purchases - use your credit card.

DO NOT use your credit card to get cash/exchange. It will be a cash advance and the interest/fees will eat you up.

was posting at the same time as budman ((B))

You really have to check with the issuers of your cards. Most debit cards do not incur extra currency transaction fees, but some do. Most credit cards DO incur extra currency transaction fees, but some do not. All depends on the issuer.

If you have time, just get a Capital One credit card. You can apply online and have it in about a week.

Be sure to let the issuer of your cards know when and where abroad you will be using the cards.

Check your daily ATM limit with your bank and make sure it is adequate. Otherwise, have them raise it.

You must take extra care with a debit card. If lost/stolen, your balance can be quickly wiped out, without your PIN, and you may not be able to resolve all that during your travels.

I use my debit card, but take a credit card tucked away for emergencies. For me there is little difference as far as exchange and I always try to only spend what I have. I am always afraid that I will spend more than I want if I use a credit card. I don't like to come home to bills after a trip.

"...Use the credit card for all your major purchases, rental car, hotel, restaurants, etc..."

You can use a debit card for these things, too. I wouldn't for a car rental, though. (due to possibility of after-charges).

<"You can use a debit card for these things, too.">

Yes you can if it is tied into VISA/Mastercard. You use it like a regular credit card and the money is deducted right out of your checking account.

I have issues with doing that. If you lost your debit card, someone could make charges and wipe out your checking account while you are on vacation. You would eventually get the money back, but it would be a hassle, especially since you are on vacation. If you lost your VISA/Mastercard credit card, you would just dispute the charges when you return from your vacation. No cash flow/out-of-pocket initial expense.

I have a debit card/ATM/VISA all tied up as one card, and I called my bank to have the VISA portion of the card disabled. If lost, the card would be useless without a PIN. ((b))

No one is going to wipe out your checking account while you're on vacation. Your card will stop working as soon as the daily limit is reached - and by that time you will have discovered that it's missing, and canceled it.

Remember, the Card Issuer (bank, credit union, brokerage) has a bigger stake in this than you do: they have to eat any fraudulent charges they can't charge back to the merchant.

I've used my debit card <i>without</i> a PIN (except for cash from bank ATMs) ever since OfficeMax's system was penetrated earlier this year.

Oh, really? My daily limit is $2,000 for VISA debits per day. I don't have a great deal of cash in my checking account when on travel -- just enough to use ATM's for the cash I will need. I mainly use my credit card for just about all expenses.

Additionally, I've experienced numerous double charges on several occasions, and it's a pain getting the money back into the account. Been there, done that, got the t-shirt.

I do understand that BofA will immediately refund any fraudulent charges, but their charges/fees are too high. ((b))

I guess that's something to think about if there isn't much money in your checking account.

I use Schwab, and they restore the account the same day. No fees.

Hi B,

As noted, CC whenever possible, ATM/debit card for when you need some cash.

I also suggest not using your debit card as a charge card. It is too much trouble to get your money back if thieves get your card, whereas with a CC you are responsible for no more than $50, even if it is your fault.

((I))