Comment by bluGill
7 hours ago
The problem is debit cards leave a window where you don't have access to your own money until it gets reversed.
7 hours ago
The problem is debit cards leave a window where you don't have access to your own money until it gets reversed.
Only time I've seen that is the stupid holds that hotels do for deposits. The time I had the bank correct a debit card issue had the money available immediately. The only real hold on the account was waiting for the new card to arrive, but the funds were available
What happens with credit card? Is your line of credit reduced until it gets reversed?
Most people have a line of credit far larger than their actual use. With a debit card that's coming right out of your account, which means your mortgage, if it comes in before you notice the issue, is going to then fail.
This is also partially that people don't put critical bills on their credit card typically. And even if your credit card does get maxed out, you typically would have a second credit card handy. But those credit card payments have to come out of your bank account and so you're risking that you intend to pay your credit card you said Set whatever it is to send the money in but there's no money in your account And so it doesn't get paid and now you have late fees on other accounts
If your debit card is going to a different bank than what you normally pay all your bills out of, this is not a worry. That is not how most people I know handle their banking though, which is why it is a real problem to worry about.
> This is also partially that people don't put critical bills on their credit card typically
This is probably atypical, as the average people I know put their critical bills on their main credit card that they use everywhere:
I put my autopay bills on a credit card that sits in my safe. The only reason it would see a fraudulent charge is if one of the few companies that has the card information, is hacked. And that actually happened once.
My bank just removes the charge if I say it is fraudulent. If I dispute a charge (I made a purchase but the other end didn't hold up their end), then my bank gives me a credit until the dispute is resolved.
Perhaps not everyone has a good credit card and/or bank though, idk.