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Why I don't Use My Debit Card

I avoid using my debit card because I'm frugal. Instead, I rely on multiple credit cards that offer a 1% to 5% rebate on purchases. In contrast, using a debit card doesn't provide any rebate or financial benefit.

Free Float

Another reason I prefer credit cards is the free float they offer. When I use a credit card, the money for my purchase doesn't leave my checking account until 10 to 40 days later. With a debit card, the cash is deducted from my checking account within a day or two.

Merchants typically pay a fee of 1% to 4% for credit card transactions, and most have already factored this cost into their prices.

Some merchants, however, offer different pricing for cash versus credit card payments. Gas stations are a common example of this practice. Being frugal, I always opt to pay with cash if it saves me money compared to using a card.

Cash Back (Credit Card Points)

During a recent road trip through the western United States, I encountered several gas stations offering a $0.10 discount per gallon for cash payments. However, one of my credit cards gives me 5% back on gas purchases. After doing the math, I realized that the 5% rebate was worth more than the $0.10 discount per gallon. So, I paid for all my gas with that credit card. Plus, I enjoyed the added benefit of not having to pay those gas bills for another month.

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