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Subject:  Re: Poll: Debit cards Date:  6/26/2002  5:31 PM
Author:  jrr7 Number:  17197 of 24368

I don't understand why anyone who can get a credit card would use debit cards

I can think of a few reasons:
- the only credit cards available have an application fee, annual fee, or other odious terms
- the person believes debt of any sort should be avoided -- Muslims, for instance
- someone who needs to control spending (with a debit card you can only spend what's in the checking account; with a credit card you can spend up to your credit limit)

Still, it's a high price to pay to have credit-card-like convenience in one of those situations.

I believe that the shift to debit cards is an attempt to eliminate the credit risk involved with credit cards while retaining the bulk of the fees charged to merchants. It is a Trojan horse being offered to consumers, and eventually the free float and other perks of credit cards will be eliminated.
I have seen an increase in no-grace-period and short-grace-period credit cards, but I still get CC solicitations, some even from banks I have ATM cards with. I don't think there's any sort of grand conspiracy to do away with grace periods. There's too much competition between CC issuers; if one of them tries to put one over on the customers, many customers will switch. For instance I haven't used my Discover card since they cut their cashback program.
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