31–40 of 398 posts
Besides the gig economy I heard that a lot of retail businesses like Walmart now pay employees by debit card instead of check. So instead of a check cashing place taking 3% of people's paychecks some bank is taking 1.x% in interchange, and if the bank happens to be owned by Walmart well who would notice.
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Need to save something for emergencies too.
Not to mention everyday expenses. You can't pay your rent or phone bill with stocks or cryptocurrency.
Use credit card, it’s the card issuers that are on the hook for fraud. It’ll help you build credit. Use debit when you don’t have the means or credit history.
What? That seems totally backwards. Don't spend money you don't have, which mean using debit. Credit is useful for the single use case of buying a house.
I haven't paid a cent in interest on a credit card since I was in my early 20s. Thanks to credit card points/miles, I've flown all over the world (often in business class), enjoyed stays at hotels, had access to airport lounge access, received various upgrades on hotel accommodations, car rentals, etc. -- all for next to nothing.
Credit cards are an excellent tool if you are willing and able to use them properly.
> “This user might very well have somewhere on the order of $2,000 of debit card transactions a month. This implies about $300 a year in interchange revenue” There seems to be a mistake in the math above. It’s not $300 a year in interchange revenue. It would be closer to $12. Interchange in the US for credit going to an issuer is around 125 bps (and that correlates to the $300 calculation). But the US is highly regul…
Earlier quoted context omitted.
Not to mention everyday expenses. You can't pay your rent or phone bill with stocks or cryptocurrency.
It really depends where on the income and wealth ladder you are. Lower and middle income, cash is king. Upper income, you’re as invested as possible and you’re able to pay for expenses with a combination of credit/margin, investment income, and comp (salary and equity liquidation). You’re keeping as little cash on hand as possible because “cash is trash” and doesn’t keep up with inflation such that assets do.
Use credit card, it’s the card issuers that are on the hook for fraud. It’ll help you build credit. Use debit when you don’t have the means or credit history.
I've had two debit cards from two different large banks skimmed in the last five years, and both times the banks took care of it instantly.
I think the whole "no coverage if you use debit" notion is many years out of date.
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Good advice, but only if you pay off your balance in full every month to avoid the huge interest charges.
Why in the world wouldn't you want to do it.
Or a relative get hurt on the other side of the country.
Or been seriously ill.
Or unemployed.
Or had a major appliance break.
Or a million other things that happen to people every single day.
> “This user might very well have somewhere on the order of $2,000 of debit card transactions a month. This implies about $300 a year in interchange revenue” There seems to be a mistake in the math above. It’s not $300 a year in interchange revenue. It would be closer to $12. Interchange in the US for credit going to an issuer is around 125 bps (and that correlates to the $300 calculation). But the US is highly regul…
I think that number was supposed to be pre-Dodd-Frank (or Durbin-exempt).
Rumors have it there’s another change also on the US horizon.