Weeze

So, I read fatbrits guide to finance and loads of the other stuff on here and thought I was doing okay.
We have a US bank account and have been approved for a real credit card (as apposed to a pre-paid one) which hasn't arrived yet.
Here's the stupid bit. When I pay for stuff in shops, after I swipe by bank card, the machines ask me to pick credit or debit options. I have been picking debit, thinking it's a debit card so that must be right and that the credit option means if you are using a credit card.
When I was in the bank the cashier told me that I wasn't using my points option and that if I picked the credit option instead on the machines, I would earn points with every purchase I make. The value of my monthly points would either be given back to me monthly (like boots points I think) or I could exchange them for goods. If I pick the credit option am I still using my bank account card like a debit card or not?

Bill_S

"Debit" removes the money from your bank account immediately. "Credit" does not. If your bank card is debit only, I suspect all that would happen if you picked "Credit" is that the charge would be denied. Don't use "Credit" until you have a real credit card.

tonrob

If you do qualify for "real" credit cards then make sure you're using the one that's right for you from a points/rewards perspective. This is something I wished I'd paid attention to 2 or 3 years earlier than I did. There are some cracking deals out there - e.g. ability to cane in airline miles to the extent that you get "free" flights home (i.e. pay taxes only) or miles-to-upgrade to business class etc. This turned out to be far more profitable for me than the farty Amazon points I was earning beforehand.

helwardman

+1

I've got a Continental Airlines credit card that has amassed quite a large amount of points just from regular grocery/gas purchases.
(Haven't tried redeeming any of them yet though)

Weeze

Thanks guys. Nice to know I was hitting the right option. Guess the lady in the bank was trying to be helpful but just made me confused!
We don't have much choice re. credit cards at the moment as we only got this one through the international section of the bank. However, at least getting this one means we can build up our credit history and not have to wait a year to be approved for a real credit card. When we have a bit more of a history I'll do as you both say tonrob and helwardman, and shop around for a good deal. Upgraded flights sounds excellent. Thanks again.
By the way tonrob, you always reply to my confused posts. I think it's your overwelming love of Houston

tonrob

Mrs tonrob and I amassed about 300,000 BA miles this year through the credit cards. So far we burnt a load going first class on AA to the west coast followed by using more to upgrade from premium economy to Club World (lie-flat business) on BA to Europe last month. We have enough left (in conjunction with a 241 voucher) to cover a business class return to Europe (paid with miles) next summer! We've also accumulated enough Starpoints through the SPG AMEX (which converts to BA or AA with a 20% bonus) to do the same again the year after! All this without even touching on the current Citi AA offer which I plan to get stuck into next month!

Nice.

tonrob

Houston - it doesn't smell of poo.

meauxna

Goodness! What did your wife say about that?!

fatbrit

If he turns up, we only have you to blame.

tonrob

Oops - mixed monikers! Good spot - potentially embarrassing.



I've been seeing other forums...

Sally Redux

MsElui

i have a visa card from my bank account - i can pay with it using it as a debit card or a credit card. If i use it as a debit card the transaction is 'approved' by my own banks transaction centre. I am charged a small fee per transaction. If I use the SAME card as a credit card - it still comes out of the same account, but the transaction is processed by a generic visa clearing house and i am actually charged less by my own bank per transaction.

zargof

You're actually charged a fee per transaction? I've not had that with any bank I've used.

avanutria

Nor I, except when purchasing in a foreign currency. A good bank won't charge you a fee to use your own money.

sir_eccles

The bank cashier is correct.

Most rewards schemes only give you points when you use your card as a credit card i.e. you sign a piece of paper and give you no points when you use it as a debit card i.e. put in a PIN.

So no big deal to you, you usually sign a piece of paper at restaurants so you get points then and if you want to go through the hassle of signing at the grocery do so and rack up those points.

Here's the rub, the banks make more money from credit merchant fees (usually a percentage) compared to debit fees (usually a flat fee).