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What are the pro's and con's of using a credit card vs a bank debit card in Russia and Ukraine? I have always used cash before, but this next trip will be an extended one, and I'm a bit leary about caring so much cash. Thanks.

... in response to credit card vs. bank debit card, posted by jrm on May 6, 2004

If you haven't used credit cards overseas before, be sure to warn your credit card companies before you go.  More than one tourist has had their card turned off by the fraud department, while overseas.  Also, find out what your daily limits are on each of your cards.

Likewise, you should know what your limits are on your debit cards.  If your card has a visa logo on it, you will be in pretty good shape.  The Cirrus network seemed to be somewhat well supported in Ukraine, but not all over.  Visa was a more prominent network.  Bank ATM cards can have their limits raised, which is something you can't always do with a credit card.

Some bank machines are strictly Russian/Ukrainian banks, so your card may not work in those.  Remember to look for the Visa, MasterCard, or Cirrus symbols on or near the ATMs.  

Also, if you have online banking, it is helpful to track your expenditures.  Marina had an ATM tell her it gave her money when it didn't.  By looking online at the bank statement, I was able to dispute the charge within a day or two of it happening.

Hope this helps.

... in response to credit card vs. bank debit card, posted by jrm on May 6, 2004

With a debit card the bank has your money -- if something goes wrong you go fight to get it back.  With a credit card the bank has your IOU -- if something goes wrong you go fight re: honoring it...  Which sounds like a better bargaining position to you?  

Here's something I found on the net...

http://www.theallineed.com/family/family-134.htm

"Credit Card vs. Debit Card - What Are The Differences
James H. Dimmitt

Ah, the "good old days". If you are a baby boomer, like me, then you probably remember how important it was to rush to the bank on payday. You had to get there before the teller lanes closed so that you could have your "cash allowance" for the week. Otherwise, if you needed cash you had to write a check, then go to the bank, and "cash" the check for real cash.

Fortunately the days of the mad rush to get cash from the bank are long gone. We now enjoy the convenience of using a nearby automatic teller machine (ATM) or you can even get "cash back" at your local grocery, hardware or convenience store.

The card you use at the ATM is known as a debit card. When debit cards first appeared it was easy to tell them apart from credit cards. Debit cards didn't have a credit card company logo on them; instead, they usually just had your bank name, your account number and your name.

Today debit cards look exactly like credit cards even carrying the same logos. Both types of cards can be swiped at the checkout counter , used to make purchases on the internet, or to pay for the fill-up at the gas pump.

When you use your debit card to make a purchase, it's just like using cash. The account that is attached to your debit card, in most cases your checking account, is automatically debited when you use your debit card. The cost of your purchase is deducted from the funds you have in that account.

On the other hand, when you use your credit card to make a purchase you are using someone's else's money, specifically the issuer of the credit card, usually a banking institution.

In effect, you agree to pay them back the money you borrowed to make your purchase. In addition you will also pay interest on the money "loaned" to you at the rate which you agreed to when you applied for their credit card. This is known as the annual percentage rate (APR).

While the two cards might act and look alike, the levels of consumer protection that each type of card provides can be different.

Under federal law, if someone steals your credit card you're only responsible to pay the first $50 of unauthorized charges. However, if you notify the credit card issuer before a thief is able to make any charges you may be free from all liability. If the credit card is not physically present when an unauthorized or fraudulent purchase is made, such as over the internet, you're also free from liability for those charges.

MasterCard and Visa offer zero-liability protection where you won't pay any charges if someone uses your credit card to make an unauthorized purchase.

The protection offered to debit card fraud is similar but with a few exceptions. For example, your liability under federal law is limited to $50, the same as for a credit card, but only if you notify the issuer within two business days of discovering the card's loss or theft. Your liability for debit card fraud can jump up to $500 if you don't report the loss or theft within two business days.

And if you are the type of person that gives a passing glance to your monthly bank statement, you could be totally liable for any fraudulent debit card charges if you wait 60 days or more from the time your statement is mailed.

Visa and MasterCard zero-liability protection applies to your debit card but only for transactions that do not involve the use of your PIN (personal identification number).

Additional protection against fraudulent use of your credit or debit cards may be available through your homeowner's or renter's insurance. Check your policy or with your agent for more information about your coverage.

Also be aware that you should contact your card issuer by certified letter, return receipt requested, after you've contacted them by phone to protect your consumer rights.

As for which card to use for what type of purchase, most experts agree that you should use your debit card for the same type of purchases you'd make as if you were using cash. Therefore, it makes more sense to use your debit card than your credit card at the grocery store or gas station (provided you have sufficient funds to cover these purchases of course).

You should avoid using your debit card for any online purchase or for something which is expensive. Why ? The main reason is that it is much easier to dispute a charge when you use your credit card. If your gold-plated, limited edition, hip-swinging Elvis wall clock arrives broken, your credit card company will remove the charge until the problem is resolved.

With your debit card you are stuck dealing with the merchant directly to resolve any problems with a purchase, even if your banking institution could really use a gold-plated, limited edition, hip-swinging Elvis wall clock of their very own."

... in response to credit card vs. bank debit card, posted by jrm on May 6, 2004

Debit cards are great for most purposes and hopefully you do not have to use a credit card but be aware that debit cards have a maximum daily limit on them and could put you at odds with the hotel people or anybody else where you need to exceed the maximum daily limit.  Anna and I were staying at the Marriott in Warsaw for her immigrant visa interview and when it came time to check out I used my debit card.  No luck. It exceeded the daily limit so I had to use my credit card instead.

... in response to credit card vs. bank debit card, posted by jrm on May 6, 2004

I also have been to Ukraine and other European countries for very extended stays, some more than 3 years long. I have lived and worked in various European countries for 9 of the last 14 years. My advice to you is to use your debit card to obtain cash on a weekly basis to last for a week. Try to avoid using your credit card. Too many problems with credit card copying or theft.

... in response to Re: credit card vs. bank debit card, posted by europete on May 6, 2004

n/t