I have a Mastercard ATM/Debit Card and a Mastercard credit card. For paying hotel bills, rental car, shopping, and big ticket purchases, should I use ATM/debit card or credit card?

I, personally, leave the ATM/debit card home and bring at ATM-only card and credit cards.

You do not have the same rights of recovery with the debit card as you do with a credit card. If lost, stolen, misused, your balance could be quickly wiped out, even without your PIN.

You need to understand the difference between two. A ATM/Debit card (with or without the Mastercard logo) deducts money from your bank account immediately. You can only spend as much as you have money in your bank account. You'll never pay financial charge (i.e. interest) as that's your money to start with.

With a credit card, the issuer LEND YOU MONEY to spend. Virtually all cards give you a grace period of 25 days or so, before you're charged interest. So, if you pay your bills in full all the time, you won't be charged interest. ***HOWEVER*** this grace period doesn't apply to cash advance. If you use a credit card to get cash at a ATM or a bank, you will be charged interest immediately!

Now, there's also the question about safety. Basically all credit cards protect you from loss due to stolen/lost cards. As long as you report it right away, you won't have any problems. And most of the main card issuers (for the US: AE, Citibank, MBNA, etc), can replace your card almost overnight, even if you're in Europe.

On the other hand, you need to be more careful with a debit card, especially with a VISA/Mastercard-branded card, and if you have a lot of money in your bank account. Someone who took your card can IMMEDIATELY deduct money from your own bank account, and it'd take a lot more time and process to recover that money. Plus, if you bank with a small local bank, they may not have a collect call number for you to call them from overseas, and they may not be able to give you a replacement card as quickly as if with a AE card, or a VISA/Mastercard that's issued by a major bank.

I agree with djkbrooks.If you have a Mastecard/Visa branded ATM card turn it in for a straight PIN based ATM card. While you are only liable for the first $50.00 on a lost ,or stolen Credit card,if you loose your Mastercard/Visa branded ATM card your checking account can be emptied in a flash.While the banks say you are not liable for this loss you get to prove that you did'nt make the fraudulent charges yourself.In addition guess who picks up any NSF fees for bounced checks that might arise.
So use the Credit Card for the big expenses and use your PIN only ATM card to get cash for the smaller expenses.

I also agree with that. I don't even own a debit card and don't really understand why people want one since you can use a credit card and not pay anything if you pay the bill at the end of the month. I refused a debit card when my bank tried to push one on me (they like them because they make more money on them some way). Besides, I have one CC that I get 1 pct cashback or FF miles for charging, why use a debit card for large bills when you can get a CC with benefits.

I think my bank claimed there was only a $50 liability on their debit card, also (continually trying to force one on me), but then there was some fine print about how that was $50 from when you notified them it was gone or something, so if you didn't notice for some days, you were in big trouble. I never thought about the fact you'd have to prove it, but that makes sense -- anybody could just claim they hadn't taken the money out. The bank clerk then said oh, well you can check your account online everyday to make sure there aren't bogus withdrawals or that you haven't lost it (to make sure you weren't liable for more than $50). I said -- no thanks, I have enough work to do, I'm not interested in having to do that and I may not be around a computer every day, I DON'T WANT IT. They finally got the idea.

There are obviously good reasons to have a debit card, especially if you use it at an ATM to make withdrawals (get cash) directly from your checking account and also to pay for things directly from your checking account.
I agree with the above: use your ATM card (mine is also a debit card) for getting foreign currency from ATM machines. Use your regular credit card to pay for hotels, meals, etc. Your fraud liability is limited with the use of your credit card and I can tell you from the personal experience of having lost one in Paris a couple of years ago, I was able to call a number for Visa in Germany (toll free from France) and speak with a perfect-English-speaking representative and get the card replaced within 48 hours.
I would also suggest having a back-up credit card with you in the event you do lose your primary one.

Christina:

But you would still recommend using an ATM card to withdraw Euros and then I guess using credit cards for paying your hotel bills, restaurants, and shopping items???????

djkbooks mentioned about ATM-only cards. Unfortunately, most banks in the US have phased those out, and only issue VISA/Mastercard-branded debit cards for ATM use.

Use the ATM/Debit card to get cash out of the machines to use for small purchases, admissions, just money you'd spend in a day or two. I usually take out money every few days. I don't have to pay to use the ATM so it doesn't make a difference. Use the credit card for any purchases. Be sure to check with the bank about cash withdrawal limit per day. I usually increase mine to $200 or $300 a day and then put it back to $100 when I get home. I never use my credit card to get cash.

Although most banks issue debit/credit cards, if you ask, they will remove the credit card feature. We did that with our Citibank cards and were really glad we did when my husband lost his wallet in Europe. We had no concerns about our personal bank account being wiped out. That was one of the best Fodor's tips.

Regarding the issue of getting rid of an ATM/debit card in favor of an ATM card only. I did that two years ago, and as I mentioned earlier today on another thread, we ran into a problem in Belgium (but nowhere else). Because our Bank of American ATM cards were no longer linked with a VISA logo as a debit card (although they were still both Cirrus and Plus), we could not use them at ATMs in Belgium. We couldn't figure out what was wrong, as our friend with a regular ATM/debit card could get the ATMS to work fine. Finally at one bank in Brugge we were told inside by a bank manager what the problem was. Belgium's ATMs (or at least the vast majority of them) are linked to Visa and will only work if it is also a debit/Visa card as well as being a plain ATM card. It is apparently a system unique to Belgium.

The bank I use (Citizens, in New England) offers Master Card debit cards and ATM-only cards. I have both. I cannot image life without the debit card at home, but take the ATM-only card when traveling.

Citizens also offers free checking with free online banking if you have direct deposit OR a $5000 (I think it is) balance in any sort of account with them (money market, credit card, mortgage, car loan, savings or checking account...).

Because of this thread I just called my bank to ask about my ATM/debit card. They said that there is currently a $500 limit on withdrawals per day, plus $500 limit on purchases per day, but I can change the limit (lower it, since I won't be making purchases on my debit card overseas). Is this not enough protection?

"I cannot image life without the debit card at home,"

I'm curious why that is, djkbooks. Like Christina, above, I've never figured out the advantage of using a debit card for day to day expenses at home, when it seems even easier to use a credit card and just pay one bill at the end of the month. I know I'd have a harder time keeping track of what I've debited out of my checking account, and I just can't figure out any advantage to using the debit card over a credit card. Not to mention that I get FF miles on all my credit card purchases which I wouldn't get on my debit card. For the record I use my ATM card at home to get cash from time to time, but I have never ever used it as a debit card. What am I missing here???

Most banks now automatically issue debit cards unless you specifically request an ATM-only card which I had to do.

For purchases, I like to use my Amex as it comes with some insurance features like damage/theft protection, warranty extension, return protection, etc. I don't believe these benefits are offered with debit cards. Same with rental cars, do debit cards offer collision coverage?

I also find it easier to keep track of expenses when using a credit card vs. a debit card. And then there are those FF miles

Correct me if I'm wrong. But I think rental car agencies will not accept a debit card. They require a credit card with the rental.

Patrick...if you find the answer , let me know. I have never figured out the use of a debit card at home.. Use that baby and you get no miles!

I just thought of something else. Since you mentioned hotel bills and big ticket purchases, debit cards have a daily limit on purchases and withdrawals. If you just paid a large hotel bill that came close or reached to that limit, what would you do if you found that you needed extra cash that day? It seems awfully inconvenient to have to keep track of this daily limit for anything other than cash withdrawals.

Jocelyn_P,
I think the issue is with the time it takes to recover lost funds. With credit cards, they will immediately issue a temporary credit to your account for any disputed charges while they investigate your claim. Will the bank also immediately put the disputed amount back into your account? If not, then it's just another hassle that could be avoided.

Add me to the list who doesn't see the point in debit cards. Who wants to keep track of their purchases? Use a credit card for even small transactions and it is all clearly itemized for you on your bill each month. And, yes, bring on those miles.