Because you're leaving 2-3% on the table for every transaction. Using a credit card doesn't mean you can't pay it off in full every month, costing you zero in interest, while taking advantage of reward programs.

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Twisol 14 hours ago | parent | next [-]

I have heard this, and it is probably a flaw in my approach to purchases. But is that really justification to ask "who in the world uses debit cards"? I still feel more comfortable not being on the hook to somebody, and the organizations that extend lines of credit don't do so as a prosocial program, certainly. (Just because some people can safely make use of credit doesn't mean everyone can. I know someone who has unfortunately made poor use of their credit card, and I don't necessarily trust myself to avoid a similar fate.)

	▲	BenjiWiebe 9 hours ago \| parent [-]
		No, credit card companies aren't giving out rewards at a loss. Better cards have a higher interchange rate, ie the merchant pays more fees to accept a good card. Hence why cash discounts are a thing (and yes they're legal again).

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wilcoooo 14 hours ago | parent | prev | next [-]

On top of all the benefits, if for some reason you get hit with fraud or scammed on a debit card, it's a lot harder to get that money back. Credit is an extra layer of protection.

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Twisol 14 hours ago | parent [-]

I've heard this, too, and it's a good reason to use a credit card at least for significant purchases. But I'd rather see those same protections extended to debit cards. I wish I understood why they aren't.

	▲	Spooky23 13 hours ago \| parent [-]
		The fees that fund those protections don’t exist on the debit card. It’s also fundamentally different. There are protections, but they depend on you being aware of the activity to avoid impact. Basically, in the event of fraud with a credit card, Chase or AMEX have a problem. With a debit card you have a problem until the resolve it. In the meantime, your payments and checks may not clear or hit overdraft. As long as you can control your spending, credit cards are a real superpower for consumers.

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Sn0wCoder 14 hours ago | parent | prev [-]

You do realize that 2-4% is not left on the 'table' its taken from the merchant you are shopping at. If you are at a big box store sure but when going to local merchants its best for them if you use debit or cash. One could argue the merchant 'choose' to accept CC but in this day and age its more like extortion because the CC lobbyist were able to make it illegal to pass that charge onto the customer.

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herewulf 13 hours ago | parent | next [-]

Don't you think the 2 to 4% is built into the prices of every merchant that accepts credit cards, big or small?

It's not a great system but it's what we have so using debit instead of credit does mean losing out.

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Sn0wCoder 13 hours ago | parent [-]

At the big box stores absolutely they have it worked in to the prices. I have no idea if the local mom and pop shops are working that 2-4% into their prices or not.

	▲	tyre 9 hours ago \| parent [-]
		Yes, they do. They understand where their margins go and the fees on credit cards are a huge one. They simply don’t have much of a choice.

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Twisol 14 hours ago | parent | prev | next [-]

I had this thought as well. I didn't want to raise it myself, because I don't have any personal evidence that this is the case, but of course the "cash back" has to come from somewhere.

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blonder 13 hours ago | parent | prev | next [-]

Handling cash costs money too though. I know some small business are credit/debit card only since they do not want to deal with the hassle of cash. Out of everywhere I have been, only one place (some grocery chain in SLC) has accepted debit cards but not credit cards.

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direwolf20 14 hours ago | parent | prev [-]

In some countries they simply outlawed such high fees, merchants pay lower fees and there's no cashback.