Question about bank cards that can be used as visa/credit cards ...

[purbeast0]

Okay I'm a litlte confused here. I have a chevy chase bank card that can be used as a debit card (directly take it from checking account) or can be rank up as a credit card (will eventually take it out of the bank account, but not at the exact time of purchase).

My GF just calls me and tells me she's at a car rental place and they need a credit card. She has her chevy chase bank card on her and left her capital one credit card at home since it's a low balance card of $500 and she has like $400 on it already, so she's keeping it at home till it's paid off.

She said the rental place will put a hold of $200 on the card while she has the rental car out, and she'll get it back once she returns the car (it's a free rental from the dealership).

However, they told her that if she users her capital one credit card, even though she only has $100 credit left on it, it would work fine because if she users a "credit" card, they don't actually take the $200 off the card, its just a hold.

Now they told her that if she users her bank card, it will take out $200, then put it back once she returns the car.

Since her bank card can be used as debit OR credit, I told her to use it as a credit card so they won't take any money out ofhe rbank account as they would if she used it as debit. They told her that it will still take the $200 out of her account then put it back in.

This makes no sense to me, or what the hell am I missing here?

 

[BoomerD]

Doesn't work that way. A check card is NOT a credit card, and many car rental places won't accept them at all. Basically, a check card is an ATM card that is also linked thru the Visa/Mastercard system for purchases. No credit is actually extended to the purchaser.

Edit:

From the Visa website:
Important Visa check card facts
The amount of your purchase is deducted from your checking account automatically?so be certain you have adequate funds at the time of purchase.
Car rental companies may require you to present a credit card in order to reserve a car but you may pay for the rental at its conclusion with your Visa check card.
To meet consumer demand for payment conveniences such as express/video checkout at hotels, pay-at-the-pump fueling, and one-swipe payment at restaurants, Visa has established processes to protect Visa check card issuers, merchants, and cardholders. Similar to how check deposits can?t be immediately withdrawn, account deductions can?t immediately be cleared when the final amount isn?t known?this typically applies to hotel, restaurant, and pay-at-the-pump gas station purchases.
For example, you may use your Visa check card at a restaurant and your card gets authorized before the tip is applied. For these types of purchases, Visa check card issuers may earmark cardholder funds to cover the estimated cost of the transaction. This process, known as a ?hold?, safeguards both cardholders and merchants, ensuring cardholders don't spend more money than they have and merchants are paid for the transaction. While most transactions have a less than 24-hour hold, Visa protects cardholders by requiring issuers or financial institutions to remove all holds within 72 hours.
You could be charged two fees when you use your card to withdraw cash at an ATM that is not owned by your financial institution?one by your financial institution, and one by the ATM owner.
Some financial institutions charge transaction fees to customers who make Visa check card purchases or get cash back at supermarkets using a PIN. Ask your financial institution about such fees before using your Visa check card.
Many Visa check cards have daily cash withdrawal limits of up to $1,000, and daily spending limits may be even higher. These spending limits are meant to protect you in case your card is stolen. Your card may be declined if you make daily purchases that exceed your daily withdrawal limit, even if you know you have plenty of funds within your checking account. You can always ask the bank to lower or raise your purchase or withdrawal limits to suit your spending habits.

 

[FoBoT]

yes, that is how it works with debit cards and car rentals

your debit card isn't a credit card, even though purchases can be routed through Visa

the car place is telling her correctly

you can choose your path Luke

 

[FeuerFrei]

Originally posted by: purbeast0
Okay I'm a litlte confused here. I have a chevy chase bank card that can be used as a debit card (directly take it from checking account) or can be rank up as a credit card (will eventually take it out of the bank account, but not at the exact time of purchase).

My GF just calls me and tells me she's at a car rental place and they need a credit card. She has her chevy chase bank card on her and left her capital one credit card at home since it's a low balance card of $500 and she has like $400 on it already, so she's keeping it at home till it's paid off.

She said the rental place will put a hold of $200 on the card while she has the rental car out, and she'll get it back once she returns the car (it's a free rental from the dealership).

However, they told her that if she users her capital one credit card, even though she only has $100 credit left on it, it would work fine because if she users a "credit" card, they don't actually take the $200 off the card, its just a hold.

Now they told her that if she users her bank card, it will take out $200, then put it back once she returns the car.

Since her bank card can be used as debit OR credit, I told her to use it as a credit card so they won't take any money out ofhe rbank account as they would if she used it as debit. They told her that it will still take the $200 out of her account then put it back in.

This makes no sense to me, or what the hell am I missing here?

Chevy Chase bank card... lol

Listen to BoomerD.

 

[Umberger]

Does she have $200 in the account? I'd use the check card. I wouldn't want to risk using the Capital One card and having an over-balance show up on your credit report, not to mention the fee your CC would charge you.

 

[dullard]

Debit cards just plain suck compared to a properly used credit card. This is one of the very numerous reasons why. They may be used AT places that take credit cards, but they are still debit cards.

The rental company needs to know it is getting paid before giving you the keys to a vehicle worth ~$20,000. A credit card loans you the money and you pay that money to the rental company. Thus, as long as the credit card isn't over the limit, the rental company knows you can pay them, even if it means taking out a CC loan.

With debit cards, if you don't have the money in that account, you can't pay them. If you can't pay them, why would they give you the keys to a vehicle that you may never return? Heck, even if she did have $200 in the account now, she may spend it on her trip and might not have it when she is done and can't pay them. Thus, they require you to pay upfront $200 if you only use a debit card. Same goes for gas stations (if you pay outside at the pump) and restaurants. They all place holds so that by the time the transaction goes through, they are covered even if you are long gone.