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[gradstudentanon]

FWIW, I used to be a heavy debit card user but then I logged onto check my account and saw a small unauthorized charge of $1.00 to Napster. Did some quick searching and learned that many thieves will make a small charge to see if a number is legit and then start buying for real. Luckily, I caught this and canceled my card in time before any other charges were made. You can't file a fraud claim until a charge goes through, which means the money gets removed from your account. 

All of which to say, if you plan to switch to more debit card use, you may want to also start checking your account everyday just to be sure nobody is trying to steal your money.

Another version of this scheme involves using iTunes; thieves will make $1.00 charges to test the number.

[punchnpie]

My credit union will charge a $1 fee for using the card as a debit card. For some reason, I just happened to notice that a few months ago and asked about it and it turns out that they make the charge and then credit me the amount. Sounds like extra work. If I use the debit as a charge card, no problems. My account provides certain benefits if I use the card like a credit card X times per month. I thought I wouldn't, but I do.

If you are at a POS terminal and it looks like it just takes a debit card, ask the person how to change the transaction. At the old Walmart, you had to hit cancel, but the new one has a fancy system that lets you hit a 'change payment type' button and several options come up.

[clean]

I must have missed this earlier.  Generally you can avoid the fee by NOT  entering a pin.  Use it like a credit card. When it asks, click the credit button.

However, several banks are going to start charging $3 a month if you use your debit card for purchases. 

I will be cancelling my Wells Fargo acct in a few months for this and the $7 a month checking charge on my 'free' checking acct.

See if there is a credit union in your area or look into the eBanks like Etrade.com or Discoverbank.com 
Likely they will not charge these fees and they have no ATM fees either.

[bookishone]

I recently read an article that said something like: because the financial reform laws no longer allow banks to charge certain kinds of fees or penalties, they are cracking down on debit card use and moving toward only permitting them for purchases of a certain amount. I was annoyed to read this because I try to use only the debit card, with the exception of conference/travel amounts that are large clumps of money I will be reimbursed for later.

If I had time I would Google this to get clearer information, but I don't just now -- will try to later if no one else has come up with it based on this very vague statement.

[devon101]

Thanks for the advice. A prepaid debit card is highly useful, but it does pose a risk for when you lose it or have your account details stolen. But as it is, avoiding debit card fees isn't that hard if you just pick one that's customized for you. I have a 24/7 Card Visa Debit Card , for example, that probably has the lowest fee for money transfer to Philippines where I send money to every month. It's all about finding a prepaid debit card that caters to you, IMHO.

[anon99]

Oh, I understand. I am having trouble getting used to coupons. It isn't like they very often offer coupons for things we actually buy.

You can go online and find coupons for specific items.

lmno, I've never been charged for using my debit card.

To the poster who said merchants don't pay a fee for debit card purchases, they pay a fee for all transactions using plastic whether it is a debit or credit card.  The fees vary, but there are fees.  At least in Canada, the AmEx fees are the highest.

[clean]

I have not checked lately, but online banks will often eat all ATM/debit card fees.  USAA, Etrade and Discoverbank are good places to start.  (I checked recently and you can join USAA even if you are not a vet, but you are not able to get insurance, but all other services are available.)

[bookishone]

Another thing to keep in mind: my credit union told me to always have my debit card run through as credit because it's more secure. It comes out as a debit on my end either way, but apparently the consumer protections are legally much better if you use the credit network. (This is apart from the risk of the card number being stolen).

[octoprof]

I've switched from using credit cards to only using a debit card for things like gas, groceries, etc.  I've noticed that in my past two statements I'm being charged a dollar for most of these transactions which adds up to about $15/month!  What is that all about? 

Did I miss something that should be common knowledge?  Why would anyone use a debit card if you're being charged for it each time? 

Help me out, here.  Octo?  Clean?  Anyone?

Is your card through a bank? Some banks are doing crazy things to bring in more revenue.

Our credit union has never done anything like this.

Or as clean said:

See if there is a credit union in your area or look into the eBanks like Etrade.com or Discoverbank.com 
Likely they will not charge these fees and they have no ATM fees either.

[spork]

It's been my experience that the only retailers who refuse to allow an ATM card to be used as a credit card are small ethnic grocers that essentially operate on a cash-only basis.

My credit union-issued ATM card is usable as both a credit and a debit card. I only use it as the former.

[pedanterast]

OMG.  You are using a credit card?  How extremely dangerous and grossly irresponsible of you.  Hie thee immediately to Dave Ramsay's website and give thyself 20 oops upside yo head with his silly book.

[prytania3]

It looks like the banks are going to do away with debit card fees. Thank your local OWS.

[mended_drum]

It looks like the banks are going to do away with debit card fees. Thank your local OWS.

Yes, Bank of America has caved.

[octoprof]

It looks like the banks are going to do away with debit card fees. Thank your local OWS.

Yes, Bank of America has caved.

Thank your local credit union and folks who had enough sense to line up to move their accounts.