Re: This is a GOOD day, I paid my bills...

Quote
JamesJM
I HATE having, (sorry, farmer stuff coming), Property Taxes and Water Assessments hanging over my head... so I got antsy and paid them both today. P. Taxes aren't due until Dec. 10th, Water Assessments not until Dec. 20th... I don't care... well worth the interest I lose from paying 2-3 weeks early to have them both out of mind.

I do that with credit cards as well... but they make it hard for me. I want to pay them the second I make a charge on them.. but I can't.. doesn't show up for a few days. Which brings up a question... can you use a Debit Card to buy stuff online? I know, I know... probably a dumb question, but I have no expertise in debit cards. - JamesJM

You could use a debit card for online purchases but you'd be unwise to do that. You should never, never, never, NEVER use a debit card for online purchases. My kids have both done it many times. When I found out I chewed them out out six ways to Sunday and they no longer do that... at least that's what they tell me. Use a credit card instead.

Here's an explanation which might help: As much as you might resist it, debit cards should not be used to pay for online transactions; a credit card is always safer for e-commerce. You're not as protected against fraud when you use a debit card, and disputes with those cards can be difficult to resolve. Plus, if someone steals your debit card number, your entire bank account is vulnerable.

Credit card users are protected by the Truth in Lending Act, which says you're not liable for any debts if you report that your card has been lost or stolen before unauthorized transactions are made. Additionally, there's a $50 limit on liability, even after your missing card has been used [source: Block].

The Electronic Fund Transfer Act, which regulates debit card use, is a bit more convoluted. You could be liable for only $50 -- if you notify your financial institution within two days of realizing that your card has been lost or stolen. If you speak up later than that but within 60 days of the date your statement was mailed (review your monthly financial statements to identify any unauthorized transactions), you could be on the hook for up to $500. Wait longer, and you could be responsible for every transaction -- and quite possibly lose every cent in your bank account [source: Block].

Most banks do offer zero-liability debit cards, so you probably wouldn't be completely emptied out if an online debit transaction goes awry. But if you do have to enter into a dispute, you'd be pretty much on your own (unlike in a credit card dispute, when the card issuer goes to bat for you). It's your money on the line, and you could have some serious cash flow problems while the issue is being resolved.

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