Thin end of the wedge

[Marty_d]

The purchase thing was an assumption on my part, I've always bought something anyway and just thought you had to (given it was a shop not a bank!) - but happy to be corrected.

Unfortunately it won't make a difference in my case, as if I ever go near a supermarket I am required to check in with the minister of home affairs, war and finance - and shortly thereafter will receive a list of things we need.

[spacesailor]

I make my withdrawals Aldi's. , makes my shopping seem free , and get cash as well .

spacesailor

Edited July 5, 2023 by spacesailor
AI changed ' Aldi ' to Audi

[spenaroo]

only time I handle cash is when I visit the barber,
even at the local sports club we swapped to EFT payments for the sausage sizzle - and doubled our earnings.

as so many people don't have their wallet with them or small denominations

 

I bought a car a month or two back,
normally with private sales I get the cash out on the day - feel nervous carrying it around.

count it at least 3 times.

this time I sent it via bank transfer. with OSKO the guy had it in his account instantly.
even transferred the registration on the spot via the internet. no need to go into moto reg the next day.

Edited July 5, 2023 by spenaroo

[red750]

I usually draw cash if I'm buying something that has a minimum spend for card or pay a fee (eg. Lotto ticket), or if I'm buying something for less than a dollar - hardly worth using the card. )(A bottle of sparkling mineral water is 85c at Aldi, 90c at WW.) I'm a skinflint.

[spacesailor]

spenaroo

But that's your choice. 

When it becomes mandatory.  We ( those that like a gjngle in the pocket ) will loose a little & gain S F A .

SO to buy an ' icecream ' I have to pay for the ' product ' ,  gst , & now your EFPOST fee.

Gst 10% efpost 2 % .  Then there's that Mandatory " minimum charge '' fee .

spacesailor

[octave]

6 minutes ago, spacesailor said:

Gst 10% efpost 2 % .  Then there's that Mandatory " minimum charge '' fee .

 

I don't understand you pay GST regardless of whether you use cash or a card.  I mostly use my credit which I pay back every Friday.  I rarely get any kind of surcharge and in the few cases where I do it is negligible and certainly cheaper and more convenient than carrying cash.  

[facthunter]

IF you always pay before the time specified, you pay NO interest on your CREDIT card. The seller of the article does pay a fee but they are guaranteed payment so that's a benefit for them.   Nev

[octave]

5 minutes ago, facthunter said:

IF you always pay before the time specified, you pay NO interest on your CREDIT card. The seller of the article does pay a fee but they are guaranteed payment so that's a benefit for them.   Nev

 Yep, I pay my CC off every Friday. My credit card costs me $50 a year, however this year I have earned enough points to secure $200  worth of Bunnings vouchers.  

[facthunter]

The only downside is the account gets accessed by someone and the caRD HAS TO BE CANCELLED AND IT'S OVER A WEEK TO REPLACE IT. Caps lock @^$%!(^stuck.  Nev

[octave]

Credit cards are a little safer than debit cards.  What Makes Credit Cards Safer than Debit Cards? Recently my sister in law had someone make a purchase for $3000 on her debit card. This money came from her savings account.  Ity took about a month for the bank to investigate and return her money.  With a credit card, it is much quicker.

 

[nomadpete]

Why is it quicker, Octave?

[octave]

I think credit card companies are insured.  Basically, the credit card company is the party that is taking the risk.  a good example is last year we sent my mother who lives interstate some roses for an important occasion.   Because we were in a hurry we just chose an online florist without reading their reviews.   The roses turned up about a week late and dead.    The florist was not interested in refunding us so we complained to Mastercard.  The result was within a few hours they reversed the transaction pending an investigation. 

 

 

 

"Credit cards and debit cards allow you to purchase or pay for umpteen expenses in a single swipe. While both allow you to go cashless, the idea of safety during usage can be a pertinent concern. More so, given the number of card frauds and identity theft in India today. Safety is one of the most important factors of difference between a credit card and a debit card.

Purchases made using a credit card are safer as compared to debit card. This is because any fraudulent transaction made using your debit card leads to funds being deducted directly from your own bank account. Also, debit cards don’t come with protection against fraud. Read on to understand more about why a credit card is a safer option as compared to a debit card.

Your credit limit is not your own money

A debit card is linked with your savings or current account. So, for every transaction that you make using this card, money is deducted from your own pocket. If a hacker or a crook transacts using your card, not only will your account be drained of its existing cash, but you also will have to wait for weeks until the financial institution investigates the case and debits the amount back to your account.

Conversely, when it comes to a credit card, the issuer sanctions you a credit limit based on your creditworthiness and income, using which you can purchase goods and services or pay for your expenses. This is as good as making transactions using the issuer’s money. So, even if your card is used fraudulently and your credit limit comes in the harm’s way, the lender will replenish it once they get to root of the problem.

You are protected against fraud and theft

Sometimes there may be instances where your debit card gets stolen or the information is hacked. In such cases, your only solution is to report the matter to the bank in order to block your card. However, they may or may not credit the amount that was used without your knowledge or consent. In contrast, a credit card comes with protection against fraud and theft. This means when you report a fraudulent transaction made using your credit card within the stipulated time, the issuer credits the said amount immediately. Thus, your liability is reduced.

You can dispute misleading transaction and charges

When you shop online using your debit card and are falsely charged for goods or services, the only way to raise a dispute is to reach out to the seller and liaise with them, which can be both stressful and time consuming. In contrast, a credit card lets you raise disputes directly with the issuer who will then liaise with the vendor, saving you time and effort. Additionally, you can also file disputes for fraudulent transactions and billing errors.

You can access extended warranties and returns

Another feature that distinguishes a credit card from a debit card is that the former offers an extended warranty and return facility on certain goods and services purchased. The extended warranty kicks in once the manufacturer’s warranty ends. By virtue of this, the credit card issuer can either offer to repair the goods or replace it, as they deem fit. Bear in mind that any purchase that comes with no warranty is ineligible for an extended warranty.

You can also enjoy in-hand security features on some credit cards

Credit cards like Bajaj Finserv RBL Bank SuperCard also offer an additional in-hand security via the RBL MyCard app. By virtue of this card, you can control the usage limit of your card and keep tab of all the transactions made using it. Thus, you can learn about any fraudulent transactions and report them without any delay. The SuperCard also offers zero fraud liability cover to keep you secured.

Now that you know the difference between a credit card and a debit card when it comes to security, go ahead and apply for a credit card to start enjoying the range of benefits that it offers. Consider the SuperCard to enjoy the power of four cards in one. Use it as a credit card, loan card, EMI card, and ATM card to enjoy maximum benefits at minimum charges. Check your pre-approved credit card offer to enjoy instant approval by submitting basic details online."

 

 

[red750]

I have two credit cards which I had when I worked for the bank over 25 years ago. For many years I had to rely on them to avoid debt collectors on such things as gas, electricity and rates. I don't use them now except for very limited online purchases (two less than $40 in the last 2 years), and for parking stations which don't accept debit cards. My debit card is with a different bank, and my savings account is with this bank but can only be used through the debit card account (ie, no direct debits or withdrawals.)

 

My credit cards, which used to be maxed, have been paid down by $2,500. These are my only debts. My credit rating has dropped a few points because I haven't applied for credit for years.

[octave]

I use the most convenient and cheapest method to pay for things which in my case is a credit card.   Of course, it is possible to live beyond your means.  All of my living expenses are paid for with a credit card. This is fine because the money is in the bank and I pay my card off every single week thereby not paying any interest and in my case accruing Bunnings vouchers as reward points.  I can tell you instantly what I spent last week on entertainment, fuel, food, etc. At the end of the year, I can also see what I spent in these various areas. this helps me put together a rational budget for the coming year.

 

I almost never use cash, too clunky and inconvenient.

 

I have recently returned home from interstate. My mother has just gone into aged care and it was my job (and Mrs Octave) to sell her house and get rid of her possessions.  We had a garage sale and as my mother lived on a retirement park I was concerned that the old potential customers would insist on paying in cash. I was thinking we would have to go to a bank and try to predict what denominations of cash we would need in order to give change.  I was quite impressed that even the older folks would usually offer to pay by instant bank transfer. The folks who would only pay with cash were less able to negotiate unless they had the exact change.

 

 

[red750]

How do you teach kids the value of money without cash? Does the tooth fairy leave a debt card uneer the pillow. Piggy banks are a thing of the past. Interesting what you say about the garage sale, octave. If you don't have a bank app on your smartphone, or don't have a smartphone, you're stuffed. I don't have an app. When I bought my car, I took my laptop to the used car yard to make the paymment. Even then, as it was the first transfer to that payee, my bank put a 24 hour Pending on it. The same happened when I made payments to my son and daughter to whom I had not previously made transfers.

[octave]

7 minutes ago, red750 said:

How do you teach kids the value of money without cash?

I don't see that physical coins or notes are necessary to teach responsibility with money.   For one thing physical money in itself has no intrinsic value, it is just a piece of paper or in the case of Australia a piece of polymer. Perhaps if we carried around chunks of gold we would more easily realize the value of money.  Perhaps if we traded our labor directly we would even more easily understand value.   The value of money is about what you can exchange it for.  A banknote is just a token that represents a certain amount of value.   

8 minutes ago, red750 said:

If you don't have a bank app on your smartphone, or don't have a smartphone, you're stuffed.

With all due respect, it is 2023.   Things have always changed and always will. Those who thrive are those who can adapt.  By the way, those who could only use cash were not impeded from buying however I was not prepared to go to the bank and ensure change in all the necessary combinations or carry a large amount of money to the bank. In any case, it was not my money, it was my mother's. People who bought things paid money straight into her bank account with no need for her to physically visit a bank at all. 

 

11 minutes ago, red750 said:

Even then, as it was the first transfer to that payee, my bank put a 24 hour Pending on it. The same happened when I made payments to my son and daughter to whom I had not previously made transfers.

 

This is not the case these days.  The people who bought things transferred the money with Osko which is instant. 

[old man emu]

My wife and I ditched credit cards yonks ago, but since then have operated on a Visa debit card. I see no day-to-day difference between the credit and debit card. The debit card is attached to my account at the credit union so I can do regular monthly payments automatically, and split my meagre income into several sub accounts to ensure that there is money for annual bills like vehicle rego. I have one sub-account that money goes into to pay those monthly payments, but I keep forgetting to transfer money from it to my working account to replenish what goes out of the working account to pay the monthly bills. I also have a sub-account for savings. I've only been doing this split properly for a couple of months, but the savings account has a goodly sum in it. 

 

The best thing I ever did was to tally up what I had to pay fortnightly, monthly six monthly and annually. Then I divided those amounts by 26 (I'm on the pension) and set up the main account to transfer money into the sub accounts, or to pay creditors directly. I find that I don't have to worry now if I want to spend money for materials for the reno; interesting tools or toys. I suppose that comes about because my living expenses are now less than half what they were before I moved up here.

[red750]

43 minutes ago, octave said:

 

This is not the case these days

This happened one week ago. Standard policy with CBA. First they text a netcode to your phone, then impose a 24 hour delay. They email you with details of the transaction, which you can block if it is fraudulent.

[octave]

35 minutes ago, red750 said:

This happened one week ago. Standard policy with CBA. First they text a netcode to your phone, then impose a 24 hour delay. They email you with details of the transaction, which you can block if it is fraudulent.

 Osko is instant

 

https://www.westpac.com.au/faq/payid-osko-what-is-it/

[spacesailor]

How do you make ' credit ' cards cheaper , than ' debit ' card ?.

At most shopping centres the receipt has a % deduction on ' credits ' .

But Never on ' cash ' transactions . ( cash as in using your own money) .

And no annual ' credit card ' charge .

spacesailor

[octave]

I have a credit card fee of $50 per year.  I get 4x $50 Bunnings vouchers a year (I could get cash back) I pay no interest because I fully clear my debt every Friday. I do also use my phone which is linked to my debit card. The advantage to the credit card is that there more protections than the debit card.

Edited July 5, 2023 by octave

[nomadpete]

Octave,

 

( Quote )

"with Osko which is instant"   ?

 

No. It is not always instant.

Last week I sold a car and was paid directly into my bank, via Osko.

I received an instant confirmation that the bank transfer might take up to 48hrs to appear. It took about 36hrs to arrive.

Not a big deal, but nevertheless it was surprising. The money turned up at about 10pm, and the online rego transfer went through instantly - can you believe a government process being instant at 10pm?

[Old Koreelah]

I use my credit card as an almost free accounting service; every time I spend money, the bank makes a record and tallies it all together, so I can check it anytime. All the details are there: dates, times and exact amounts. Best of all, I rarely collect the paper receipt, because my bank helps me prove I paid for things. 
 

Even better, my credit card account is a diary of places I’ve been. My bank keeps a close eye on my financial behaviour and if something anomolous comes up, they phone me straight away.

 

Yes, I carry cash for when Teltra’s network fails.

[spenaroo]

I believe there is a limit to the amount that is transferred instantly....
so do it in smaller increments. When I worked at a dealership we would get people to transfer $1000 first. to make sure everything worked before doing the full amount.
this was so the bank didn't see it as a new payee

 

I did a transaction last year that had to be paid within a few hours, across banks... so did several $1000 increments to be safe.

[red750]

1 hour ago, Old Koreelah said:

every time I spend money, the bank makes a record

That's the whole crux of the matter. No privacy. Every time you blow your nose, someone has a record. You don't have to be breaking the law to want privacy.It's no-one elses business what I buy or where I spend my money. Just suppose I went to a brothel. (Not that it would do me any good, due to surgery I am permanently impotent). But if I did, whose business is it but mine?