It is recommended that if your primary account is at a traditional bank, then your second account is at a credit union or online bank. If your primary account is already at a credit union, then open your second account at an online bank.
There isn’t a problem with opening your 2nd account at the same financial institution, as long as they aren’t linked for any sort of overdraft protection.
When I started a new checking account at my current bank I requested an ATM-only card and they issued me one, no problem. A few years later they sent me a debit card. I cancelled it and still use the ATM-only card.
I’m in the minority here with an unpopular opinion. But I still do not understand it.
1-My debit card has a 6 digit passcode. Foolproof? No, it does add security.
2-My debit card has a $300 per day shopping or ATM limit.
3-I get an email immediately when it’s used.
4-According to my bank, worst case would be $50 loss and no more.
[I know there is a time limit, but I know the instant it’s used.
Meanwhile…
1-My CC has an $18,000 credit limit.
2-It does not have a PIN code.
3-Anyone could rack up thousands of purchases in no time.
[which is why it never leaves the house\
My bank proudly says it’s safe because I won’t lose anything.
The debit PIN is a prevention, but fixing the theft of my CC is done after.
In my mind, I prefer prevention rather than correction.
Yes, this topic has been beat to death.
I don’t disagree, but I had bought something online with a debit card once where I received the wrong item. I tried to dispute it with my CU and they said that I had to work with the retailer to get this fixed. The retailer never responded and the CU said they couldn’t help. They said something about the debit card being a “promise to pay”. That was the last time I used it to buy anything online and have slowly stopped using it since.
I never use my debit card online. It’s my “walk around” card for groceries, small items, and the rare occasion when I eat out.
My CC is the ‘go-to’ method for anything bought online.
Go with what works for you @robertpri, but I would rather be dealing with an erroneous charge on my CC than one that has already removed funds from my bank account thru the Debit Card. BTW, the PIN code on your Debit Card is worthless for CNP transactions.
Good plan. I’ve had my Debit card number compromised a couple of times and my CU caught the transactions and shut it down both times. One of them was kind of obvious where someone was trying to buy luggage on the other side of the country, but one of them seemed like it could have been something I would have done and they still stopped it. Their fraud algorithms seem to be pretty good in general.
Noted this before. Years ago, drove 850 miles to Seattle, and my CC was denied at the motel. Called fraud dept and they were surprised I could travel 850 miles without airfare, any charges, not even gas. [have a gas CC]
This is the best way to get consumer protections with your debit card!
How do Apple Pay or GPay compare with something like Pay Pal ?
I never use my debit card online. It’s my “walk around” card for groceries, small items, and the rare occasion when I eat out.
My CC is the ‘go-to’ method for anything bought online.
Whenever my bank(s) issued me a debit card, I wouldn’t use it and requested an ATM-only card, which I got.
I just don’t trust debit cards – the bank insisted that it was PIN-protected. I went nextdoor and purchased something from the Hallmark store using my debit, no pin. The charge went onto my checking account. So, no, I never liked them.
Plus, having to balance my checking account…arghhh! I don’t want to do that for every purchase I make!!
So, I have a couple of credit cards – one for groceries/gas, one for online, etc.
I like to keep my purchases and my checking account separate – I can organize better that way!
Clark advises to pay cash at a gas station rather than using a debit card – correct,
BUT be sure to lock your car before going in! My wife got her gas during evening
rush hour and was in a long line to pay when she suddenly saw a young man run
by outside to a waiting car carrying her purse – she exclaimed “That’s MY PURSE!” but no one did
anything… The small award she had received at work did not
make it home for me to see as it was in her purse, and I had to stay home the next
day to get the locks rekeyed.