Frogger - In my industry our credit card fees range anywhere from 0% (for a company brand card) to 2.35% (Amex) of the sale amount PLUS transaction fees ranging from 15 cent to 45 cents per transaction. These fees differ depending on who your processor is, but I know our processor is the lowest in our industry. For us, debit cards are a 23 cent transaction fee plus .3% of the total transaction. It's not great, but it's much better than credit fees.

So you might get 1% back, but it would end up costing your more than the 1% you're getting back because of what Woodman's would have to raise their prices to in order to cover the fees.

Any time you want use your card at a small business, I encourage you to think twice. If you buy only a pack of gum from an independent business owner the math goes something like this:

If spent $.99 cents on a pack of gum, the merchant probably paid (just for example) a $.25 cent swipe fee, plus 2% of the total sale. The cost of a pack of gum priced at $.99 to the merchant is usually somewhere around $.65. So on that transaction your total would have been $1.04 - the gov't makes $.05 on taxes, the merchant made $.07, and the credit card company made $.27 (add in the .65 cost of the gum to the merchant and you get $1.04). You got a penny back and the credit card company walks away with $.26. The merchant has had to raise the price of the gum by a fairly significant percentage in order to make any money at all, which ended up costing you more than the penny you got back.

cc still faster than a check writer or cash. Swipe and done. Most of the time no sign anymore ! )JMO

I dowish Woodmans would get with the times. I understand they have good prices but they sell so much so why wont they accept CC. Yes I get there is a fee but you could make more money because you will pick up all those cc shoppers.I only go when I have cash and that isn't often and not for a whole groc list. I dont get my 1%.

I use my credit card for a pack of gum and everything else I buy. Every time, except for Woodmans, so I frequent Sentry or Logli because they do accept credit. We earn cash towards maintenance fees on our timeshare when we use the card. I'll charge anything I can. The trick is to discipline yourself to pay the balance in full each month to avoid the finance charges. Easy, cheesy.

I think what Sigma is talking about is the fact that debit is a real time transaction, credit is not. That still has nothing to do with what you see on your bank website. How quickly your bank posts transactions, debit or credit, has to do with the bank.

Because debit is real time, your bank has to confirm to the merchant that there are funds to cover the transaction. For the average debit transaction like at target or woodmans, the merchant knows how much the transaction will be at the time you swipe your card, so what you see if the full amount of the transaction. That is not always the case. If you use your debit card to pay for gas at the pump, often you may only see at $1 "transaction" on your account if you check your bank immediately after using your card, or you may see $100 transaction. That all depends on the policies of your bank. Because when you swipe your card for those transactions, the merchant doesn't know whether you're going to pump $5 or $75, your bank has to determine if it will hold funds in your account to cover the transaction (those are the banks that show a $100 transaction regardless of the amount your actually pumped), or just a $1 transaction that verifies the account is legit. That is entirely determined by your bank, and so is the release of those funds. I know that some banks will take up to 3 business days to release the $100 hold, even though the actual transaction has shown up on the account in the mean time. I think it is definitely something ask about if you are considering switching banks (although unfortunately most tellers and even some bankers are unaware of these policies of their own bank, and will tell you the merchant has to release the funds. That is crap. The merchant has absolutely no way to hold or release funds in your account. Only your bank can do that). For people that $100 isn't going to be a problem, they may never notice it either. Unfortunately for the people that is does affect, they don't know about it until it's too late and their card is declined somewhere, a check bounces, or one of their online bill pays won't go through. Most people that don't bank at institutions that will put a $100 hold on funds for a transaction of undetermined amount never know these things happen. This is also the reason most hotels either don't take debit cards, or they have notices posted that you will be charged for the full amount of the room at check in and credited back later. There are not very many situations anymore where the transaction amount is unknown at the time the card is swiped, but it happens. The bottom line is it all has to do with your own bank's policies, where you use your card, and how fast your bank posts transactions to their website.

I use a credit card for every purchase possible--regardless if it's only $2 or $3. It's just so much easier that carrying around cash and having to deal with loose change. The debit card gets used for groceries because Woodmans doesn't accept credit cards. I don't balance anything. There are websites like "Mint" I check daily. This site gives the user a complete and very detailed account of what is going on with their credit card accounts, savings and checking accounts and investment accounts. If someone was accessing any of my accounts, I would know immediately.......

Sigma, I know that's what you are talking about, as am I. Maybe it's just my bank that handles it that way, but my debit charges show up right away and so do my credit charges with my debit card. When I am out shopping, I check my account on my phone after I do the transaction and both appear right away. I only do "debit" at places like Woodman's that don't accept credit cards...otherwise, it's always processed as a credit card, and it shows up right away.

ps- this is CLark Howards more stupid advice- don't have a depatment store CC. Pay it off every month so you wont pay 28%.

correct Debit is instant and if it is stolen or just the number used it takes time to resolve and your money cannot be used. Sorry most of us don't have enough money to wait for this to be resolved. We have bils to pay. With CC there is more time for this and it doesn't wipe out a bank account.
Gary- true about the points which I mentioned earlier.
Kohls- save 15-30 % more. Jcp card at least $10 to spend for free a year.

Credit cards give you money back.
I am not aware of debit cards that do this.
I only use debit at grocery stores that do not take credit.
It's nice to get a check for fifty dollars or a hundred dollars every couple of months
and a nice rebate credit from Menards every year.

I dont have a credit card other than my debit card... thats what we are talking about. when you use it as credit it gives you a couple days before it shows up, that is the whole idea. Debit is instant.

My husband's credit union takes longer to show his debit transactions online than my credit card company does. It's not about credit or debit. What matters is the merchant where you used your card (and when they send their settlements through to their processor), and the bank the card belongs to.

Sigma40, not true. If I do a "credit" transaction with my debit card, I can see the transaction on my Chase bank app on my phone within minutes (even seconds). Same with "debit" transactions with my debit card. The only difference is signing vs. using a pin number.

Once sigma moves out of their parents house, they will understand the whole money thing better.

well sigma- must be nice to be rich and have enough money to never look at your account every 2 months. Most smart rich people still look at their account to see how rich they still are.

I do agree about the water bill though. I did finally put them on my bill pay list. No fee for this with my account at PCCU. Saves another stamp.

Frogger - there is a difference between "debit" and "credit". Credit will take a couple days before you see it subtracted. Debit will instantly. People just need to be aware of how to spend and manage their money.

Frogger -"So if your "debit card" says you have $2000 it doesn't really mean you have $2000. If something didn't clear yet then it really isn't $2000 left. What don't you understand about that Sigma?"
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My debit card doesnt tell me how much i have. It is my responsibility to always know how much I have and how much I spend...everyone should. I make more than I spend so I dont have the problem of constantly watching my account to see if im in the red. People that do that I would call an "idiot". All my bills, cable, internet, power,...everything all auto paid from my savings. I might look at my account once every 2 months. The only issue I have is the city of Janesville's water bill, they are stuck in 1975 and only accept checks or cash. And I think you can setup a auto pay now but you need to attach a blank check to the form to do so....kind of stupid if the reason you are filling it out is because you dont have checks...and yet you need a check to do so. lol.

"I was stumped. While I realized my online balance and my 'real balance' would never be 100 percent in sync the distance in quantity was too great"
stumped???? lol. It has been that way forever. IT is not as bad as it used to be with all the electronic stuff now though. If you are only doing bill this will not happen as much either.

"While my method may be a tad time consuming I know what my true balance is at any given time. "

So do I. Itis called the old fashioned way. Log it asap- NOW and subtract it now. It doesn't take long. Double check online and add the outstanding .....

indy- I do the same. I subtract every time I write a debit. Maybe 3-4 small ones might be written w/o totaling it but I can add those quickly and subtract from the previous balance.
Joym- if mine if off .01 I WILL also find it. If I cannot find it I write down that is is -.01. If it is there for a long time I will assume I can add .01 to my account. I isnt often that I cannot find it. I ahd a $5 check and a $10 check that havent cleared for over 1 year and the other will be two years. Safe to add that back in pretty sure.
bigmike- true on the contributions- guess Sigma doesn't do that. If you say you gave them cash and they audit you- good luck. Can prove it with a check.

So if your "debit card" says you have $2000 it doesn't really mean you have $2000. If something didn't clear yet then it really isn't $2000 left. What don't you understand about that Sigma?
I never use a debit card that is linked to checking. To risky.
I always use a CC for everypurchase I can. Yes even if it is $2. They add up and you will get 1-5% back. Free money I will take it. Sorry Clark Howard you are an idiot when it comes to your advice on this. boa seems the best for rewards- no limits like discover- no spend $3000 first and then you get your 1% vs .25. BOA is 1% all and 2% grocery and 3% gas. May have that switched around - the 2 and 3%. Be sure you do get that full amount back. One of my BOA is only a fraction of what you earned. Chase is a good one too. Check or cash back or debit from account. 1%

I be sure it is balanced weekly when I pay bills. Then I write the day i was balanced so if an error I don't need to go back far. With all info online under your account this make things easier. Not sure how doing it once a month before didn't scare me. I do have free service it something does go wrong it will come from savings and no fee. Thanks PCCU. I moved money but forgot to "confirm" the move and looked like a huge disaster. Instead of writing all that happened I new it was balanced just a couple days ago so I trusted the transfers and logged the correct amount. whoops.

Thank you. Yes I am accountable, responsible and not like most of America....in debt.
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luvujvl - My thoughts exactly, I dont understand how people can not know how much they have.
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"Explains alot about Sigma40"
.
That is EXACTLY what I was thinking!

SIGMA 40, Yes people still use checks, we use them only to pay our bills, otherwise we use cash at stores, (I think some people have not heard of cash, as they will use debit/credit card at store for a dollar or two dollar purchase) or some big items we use credit cards...Debit cards are not very good...too easy for fraud, is what I heard on the radio once.

What scares me is that this is even a question. How do you function if you don't know how much you have to function with? Yikes!

What scares me is that this guy sits on the board of directors of my credit union.

When I write a check I immediately enter that information into the transaction register that I receive with each box of checks I ordered. The first of every month I enter my direct deposit amount for my retirement check. I always know my balance. I will do it this way for the rest of my life.

Explains alot about Sigma40. Checks, debit cards, verify on line that what I spent is input on my transaction register. Reconcile bankstatement. Like to know that there is no hanky panky going on because someone got hold of my account. It works for me!

use quicken and balance daily. Have not written a check in a long time. I use checks only when making a charitable contribution or paying the property tax so I have the record for tax time.

I, too, use Quicken. It's easy and accurate. Like you, the only time I've been off was when I wrote that occasional check (I've written maybe 3 in the last year) and forgot to record it that same day.

...and not everyone has direct deposit options from their employer.

The vast majority of all businesses still operate with checks because it is the safest method. Allowing vendors to debit your bank account directly leaves you absolutely no recourse if your billing is incorrect or you are owed credits. You have no choice but to wait around until they feel like giving you the money back. And by the way, the only way to truly stop a company from debiting your account fraudulently is to close the account. If you have 100 automatic deposits and withdrawals set up every week going into and out of that account, that is a big problem. The number of businesses these days that rely on accounting software and have absolutely no idea how to actually balance their own books is even more ridiculous than the number of people that don't know how to do it in their personal life.

So, Sigma, when Nana writes you that $13,000 check to get it out of her estate, you're going to give it back? Not all people have the means or ability to use online banking practices like you and I might.

Checks are a horrible practice... they are just "I-O-U's". I dont even get a paycheck, direct deposit, I got with the 90's....back in the 90's. I absolutely hate checks... and when people write them.

It was always a rule in my house growing up that the checkbook got balanced to the penny, and if it didn't on the first pass, my mom set it down and came back later with fresh eyes. When I was a bank teller as a young adult, I was therefore SHOCKED at the poor recordkeeping kept by several prominent local business people - their only saving grace was that they had so much money it usually didn't matter about the checks they wrote. When I was in high school (Parker 1980) I took accounting as well as higher level math courses, and we were young and stupid and made fun of people who took Consumer Math because we thought it was so easy. Then as a grown-up, I have met otherwise very intelligent people who don't get it that, if you mark something up 25% from $100, you get $125, but if you want to mark it back down to $100 from the $125, you only mark it down 20% - yeesh. I am glad to see schools today are requiring classes that teach budgeting and other financial life skills, starting at an early age. Hopefully the next generation won't be as messed up as this one is with all of the bankruptcies and foreclosures.

I write checks all the time. Only because I happen to be able to cash them at my place of employment, thus saving me a trip to the ATM. That's pretty much the only time I write checks, but I still use the register that comes with my checks. I know where every penny is, and I like it that way. I have a budget spreadsheet that tracks everything and reminds me when my bills are due, but I still balance my register to my bank account (online of course - paper statements are worthless). I do it at a minimum every paycheck. In my opinion there is a right way and a wrong way to do it. As long as you're tracking it, it's the right way.

"So I said to the bank teller, 'How could I be overdrawn when I have all these checks left?'" -A Thurber Carnival

Steve,
Can you kindly send this blog and all the comments to the school boards, town boards and all elected officials in the U.S. 90% have failed to be able to balance anything involved with taxpayer money.

I didnt think people still used checks, kind of primitive, ive never owned a check book. And also... If you cant remember if you have an item in your online account that hasnt cleared yet then you shouldnt be allowed to have a check book, card, or even handle money for that matter. I like you how pass it off as "normal" for people to forget. Debt, bankruptcy... its the American way. I rarely look at my account online, I have a debit card and keep track in my head how much I spend vs how much I have...Never in my 20 years of having them have I ever even come close to spending more than I have...that is just pure stupidity.
"balancing a checkbook"....lol.. Its like winding a watch. Who has those anymore?

I make sure I put in more than I take out, and I check my balance at the ATM. When the amount gets too high for my comfort level I buy something.
Are you cringing yet Steve?

I had a checking account when I was 11 yrs old to pay my paper route bill. My mom taught me how to balance it at the time, and I still do it that way, line by line with old fashioned addition and subtraction. It is fairly easy that way to me.

Just keep an extra $10,000 in your checking account
and you never have to worry about overdrafts.

I have a printing calculator with memory. For every transaction, I recall the memory amount, add and subtract credits and debits, and restore the result back into memory. The tape leaves a record of transactions. Periodically I check it against the online amount. I can easily do that from my cell phone. The calculator amount must always be less than or equal to the online amount. If it is greater, there is a problem.