Does a Debit visa/mastercard behave the same as an eftpos card?

Ljlien on 19/03/2014 - 13:16

I've been holding onto my CBA keycard and was offered to 'upgrade' it to a debit mastercard.
I have a suite of credit cards so features of it being usable as a CC for online purchases and such doesn't appeal to me.
I keep my keycard (eftpos) and use it for places that surchage (our outright reject) credit cards but accept eftpos.

Will a debit mastercard be usable at these places? Will it attract the CC fee?
What about places that don't have credit card facilities (but do accept eftpos) will the card work at all?

My concern is that a mastercard debit may not provide any further functionality (vs my credit cards) but instead lose usability in places that don't accept CC's.

On another note, how do re loadable credit cards (e.g. travel money cards, QFF, Load n go, etc) fit in with the above? Can I use my Qantas cash card at places that surcharge/reject credit cards?

Thanks in advance.

Financial

Comments

  • PissLUR on 19/03/2014 - 13:35

    a debit mastercard can be useful to avoid the cc fee for jetstar purchases.

    yes, you can select savings account to avoid cc fee and use it as eftpos purchase.

  • Franconian on 19/03/2014 - 13:52
    +1

    Basically a Debit card is treated as a "Credit Card" Payment. Only difference is that the money is taken out of your account immediately. Generally if there would be a credit card fee charged by the vendor it would also apply for debit card payments.

    As PissLUR mentioned some airlines offer fee free payment with Debit Mastercards (Tiger). Probably because most people have Visa debit cards…

    It will still be an Eftpos card too by selecting "Savings or Cheque" as payment option. Paypass payments (under $100) are treated as Mastercard Debit payments.

  • bittervalue on 19/03/2014 - 14:28

    tl;dr?

    yes. they're great!

  • Malarkey on 19/03/2014 - 15:45

    jlien, a debit card is the exact same as your current keycard except it has the option to be used for online purchases etc. So you can still select Savings or cheque etc like you normally would with your keycard and there will be no credit surcharges etc.

  • pjetson on 19/03/2014 - 16:56

    If you use PayWave or PayPass (or whatever your bank calls it), the transaction is treated as a credit card transaction by the EFTPOS terminal, and the retailer pays a credit card fee. However, the money comes out of your bank account just like a debit card transaction.

    If you insert your card into the slot in the EFTPOS terminal, you can select Credit, Savings or Cheque accounts. If you select Credit, it's the same as above. If you select Savings or Cheque, it works exactly like your existing debit card for both you and the retailer.

    So, the bank makes more money if you use PayWave or PayPass than if you use it as a debit card. It costs the retailer a credit card fee if you use it as a credit card. It costs you exactly the same as a debit card however you use it.

    Clear as mud?

    Peter

    • The Batman on 19/03/2014 - 20:48

      thanks pjetson, just wondering, if using paywave results in the retailer paying a credit card fee, is that fee usually passed onto us, the consumers?

      • pjetson on 19/03/2014 - 21:08

        The retailer is charged the fee, not the consumer. Just like any other credit card transaction. Of course, the retailer will have built it into their pricing structures, or they may charge you a separate credit card fee. Again, just like any other credit card transaction.

      • c64 on 20/03/2014 - 08:36

        just wondering, if using paywave results in the retailer paying a credit card fee, is that fee usually passed onto us, the consumers?

        legally retailers can tack on a surcharge (2%?) for purchases using credit. many retailers don't eg, woolworths, coles, etc. you need to check before purchasing.

        • vipulrm on 20/03/2014 - 10:01

          Aldi does have a surcharge (0.5%, if I remember right) on all credit transactions. So if you insert the card and select Cheque/Savings, you won't pay the surcharge, but if you tap, you will end up paying it as tap defaults to credit account.

    • tonester on 20/03/2014 - 13:18

      Clear as mud?

      eft terminal:

      credit or contactless = payment via scheme eg. visa, mc, amex - credit or debit depending on card type

      savings or cheque = payment via eftpos - debit only

      stores pay transactions fees such as credit/eftpos merchant fees, interchange fees, scheme fees, and can charge customers a surcharge for them

  • jlien on 20/03/2014 - 09:57

    Thanks for the response guys.

    Is anyone able to shed some light on how the reloadable creditcards work?
    e.g. qantas cash, cba travel money, aus post load n go, virgin global wallet.

    Do they behave as debit cards or as credit cards?

    • vipulrm on 20/03/2014 - 10:04

      As far as I am aware all reloadable cards work as credits cards.

    • retiredfeline on 20/03/2014 - 13:24

      Well I mean that's a contradiction in terms, you prepay the card so they are not extending you credit, you're spending your own money and when it runs out it runs out. Normally they're just described as Visa or MC prepay cards, and they should work just like CCs or DCs in the system.

    • tonester on 20/03/2014 - 13:30

      they are debit visa/mc cards so you use them via credit/contactless not eftpos
      https://www.ozbargain.com.au/node/137270#comment-1892051

      • cwongtech on 26/03/2014 - 22:38

        they are debit visa/mc cards so you use them via credit/contactless not eftpos

        But with much higher fees and are quite a hassle to reload.
        Only benefit is anonymity because some reloadable Visa/MC cards do not require a lot of personal info.

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