Expect Some Refugee's

[Madmanmcp]

h_tp://www.dreamhoststatus.com/2008/01/15/billing-issues/

 

They have a MAJOR problem over at Dreamhost and it will be a nightmare to resolve. They screwed up the billing and trying to fix that they billed AGAIN...double-billed for 2 years in advance, geesh.

 

To some its not an issue, to others its a disaster, and its worth looking into how each of us do business. The ones who use Bank or "check cards" that take funds directly out of their checking or savings account to pay for things are hurting. Some had $200-$400 deducted from their accounts which overdrew their account and then got a charge for an overdraft fee. Then some other charge came in, a car payment or mortgage, and the account was short and they get another penalty and the problem snowballs.

 

Not a fun place to be over there, hope they can resolve it quickly.

[DWD]

I've never understood the purpose of a check card. I can't imagine why people use them.

[MikeJ]

I've never understood the purpose of a check card. I can't imagine why people use them.

 

Convenience. Especially if a person does not have a credit card (that is, people with bad credit or don't want to have a credit card because they can't control the urge to spend it's limit).

 

It's kinda like saying you don't understand why people use checks, because it's the same thing, just in electronic form.

 

However, you are right that if you do have a credit card and sufficient limit on it, it's smarter to use it over a check card for paying online services, particularly those that are automatic payments, for your own protection.

[DWD]

Convenience. Especially if a person does not have a credit card (that is, people with bad credit or don't want to have a credit card because they can't control the urge to spend it's limit).

 

It's kinda like saying you don't understand why people use checks, because it's the same thing, just in electronic form.

 

However, you are right that if you do have a credit card and sufficient limit on it, it's smarter to use it over a check card for paying online services, particularly those that are automatic payments, for your own protection.

 

To respond to your points:

 

Convenience: not more convenient than a credit card to use and, as shown here and many other examples much much more inconvenient when things go wrong.

 

People with bad credit: these people constitute only a tiny fraction of those using debit cards and almost all of those with bad credit could get a secured credit card and, by doing so, start to build their credit rating

 

Can't control the urge to spend it's limit: so wouldn't they also be unable to control spending what's in their bank account? Again, a secured credit card should be a remedy.

 

You don't understand why people use checks: close, I don't understand people that carry checks around with them. Only when buying a Christmas tree each year is it cash or check only...otherwise leave the checks at home and carry a credit card.

 

Finally, in comparing debit and credit cards there is no downside to having a credit card over a debit card but many many reasons not to use debit cards. If self-control is a problem, carry a credit card and a check register and deduct the amount of each purchase from your bank account as you make it. I know someone who did this when money was real tight for him and doing it overcomes any argument that might exist in favor of using debit cards. Consumer advocates did not get together and create debit cards...banks, who are in the business of making money (not that there's anything wrong with that) created debit cards to make more money.

 

There will always be people who use debit cards, drink bottled water, buy name-brand medicines, play the lottery and host their websites someplace other than TCH. God bless their foolish little souls.

[TCH-Bruce]

Sorry, I have to disagree, I carry a debit "check" card so I don't have to carry cash. When I need cash I go to my bank and take some out with my debit "check" card. It's more convenient for me than carrying around a wad of cash. Oh, and my bank does not charge me to use the card unless I use another bank's ATM.

 

I also carry credit cards and use credit cards for most purchases.

[MikeJ]

Can't control the urge to spend it's limit: so wouldn't they also be unable to control spending what's in their bank account? Again, a secured credit card should be a remedy.

 

You can't spend what you don't have with a debit card. You can get thousands of dollars in debt with a credit card (if you have good credit and they throw $10,000+ limits at you to get you to overspend).

 

Most secured credit cards also have a pretty small limit on them ($200-$500) at least until your credit is improved (and many banks are dropping secured credit cards). It's not simply put a $1000 in and get a $1000 limit.

[Samrc]

There will always be people who use debit cards, drink bottled water, buy name-brand medicines, play the lottery and host their websites someplace other than TCH. God bless their foolish little souls.

 

I am not a foolish little soul, yet I am a check card person.

I like the convenience of the money coming from my checking, without having to write a check.

It does not cost me to use it, and saves me time.

 

I don't carry cash.

 

I have good credit and have the choice to use a credit card.

But if I do, I then have to take the extra step of paying it off at the end of the month if I don't want to pay interest.

Why add hassle to a simple purchase?

Especially since many of the credit card companies now have a 15-20 day grace instead of the old 30 days. If the payment gets there within a month of the billing, I could still get charged interest when my intent was to pay off the balance.

(And now I hear that some card companies AVERAGE 2 months charges for the interest so even if you paid it off, you would owe interest!!!)

 

Some of the secured credit cards (often used as a GIFT CARD) now offered (walmart, amscot, etc) have fees that really eat the balance. Each purchase has a fee, fee to check balance more than once per month, fee if you don't use it within x months, etc. Those things can REALLY eat you up. A check card does not do that. You are charged for only what you spend!

 

Credit Cards have their uses. But I make the choice to NOT use it for everyday purchases.

 

Like having cds, money markets, savings bonds, penny jar, saving accounts, using a bank or credit union, the check card is simply another budgeting option that each individual chooses to utilize or not.

Edited January 16, 2008 by Samrc

[Jeren]

So as to avoid the conflict between Debit and Credit... I'll just comment on the original post.

 

That's a very BIG billing problem... DreamHost apparently is turning into a small nightmare.

Edited January 16, 2008 by Jeren

[mike]

Just ONE MORE REASON to join the TCH family, as I see it.