Another credit card question...

Cognisseur

Hey folks,

Yet another question, but this one isn't as interesting and full of scandal and potential law infractions, sorry.

I'm using Time Warner for my Internet. I just got my first bill, $34.95 just as I expected. There's an option to pay online, which seems nice and convenient but...

Whether I use my MasterCard credit card or Visa check card (both Bank of America), I have to check accept to:
"I want to pay using my card as an ATM card, and my card has one or more of the Debit Card Network logos. Notice, bank fees may be incurred."

Now... I don't really want to pay bank fees. If I use this, am I going to pay a bank fee of some sort? If so, how am I supposed to pay bills in a way that doesn't involve fees? Directly through my online bank account?

VisionOfClarity

You can do direct check typically or mail it in. Or you can call your bank and see if there will be charges.

Thegreatcow

Well you won't necessarily incur any fees just by using the card, this is just a general disclaimer to cover their asses in the case that by using the card, they can't be held liable for what happens to the account the card is CONNECTED to.

In other words, certain types of accounts can let you have a debit card attached to them, but have say, transaction restrictions (a good example of this would be say, savings accounts, most limit how many transactions you can do per month, otherwise you incur a fee) that can, if broken, lead to fees just by using a card.

Best advice would be is to double check with your bank, just ask someone from the bank to be sure. They should be able to tell you the transaction limitations on your account and your card.

Marty81

I wouldn't be surprised if paying with your credit card, using it "as an ATM card" would cause it to register as a cash advance, which is subject to like a $10 surcharge and incredible interest rates. So be careful with that. Using your check card should be fine.

RUNN1NGMAN

Using a Visa/MC check card, you never ever want to use it as an ATM card for point of sale or bill payment transactions. There can be lots of fees associated with using it that way, and generally if you have some sort of rewards program, you don't get rewards for the ATM card transactions.

The only exception to this is if you want to get cash back at a supermarket or something like that.

Thegreatcow

RUNN1NGMAN wrote: »

Using a Visa/MC check card, you never ever want to use it as an ATM card for point of sale or bill payment transactions. There can be lots of fees associated with using it that way, and generally if you have some sort of rewards program, you don't get rewards for the ATM card transactions.

The only exception to this is if you want to get cash back at a supermarket or something like that.

Well this isn't ALWAYS the case. Keep in mind the way debit card transactions are processed is also different depending on how you key them in. Also whether or not you get charged a fee for using the debit or credit is vendor independent. They either choose to charge it or they don't, it's not set by some uber authority.

In any case, here's how they function in a nutshell:

Debit or Pin-Based transactions - Transaction posts IMMEDIATELY OR SAME DAY. There's essentially no time delay from when you swipe the card and when it gets taken out of your linked account. Also allows for cash back. I actually prefer this method because it makes balancing the checkbook much easier at the end of the day.

"Credit" Based Transactions - If your debit card has a Visa or MC logo on the front then this is what's considered a "credit" transaction. Typically shows up as when you slide the card and just sign a receipt. If you purchase or pay for something online, then this also is processed like this. The major issue I have with this method is that you're essentially at the mercy of the vendor for when they decide to "post" or "collect" on the transaction. This can wreak havoc with trying to figure out when you did something, especially if you didn't write it down in a checkbook. Plus I have seen small vendors even charge for credit based transactions, it all depends like I said.

Thanatos

Just use a credit card.