Quote:
Originally Posted by MaDalton
i'm not a specialist - but is there any significant difference in denials regarding debit vs. credit cards?
and isn't there maybe also a psychological difference?
like: with a debit card there's only that much money available and is needed for buying groceries - while with a credit card you might think something like "another $29.95 in debt - who cares"...
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You're quite right on both counts in my opinion. First, Debit Cards, while they can be used like credit cards, have interesting restrictions on them that vary by issuing bank and that you may not find on your credit card.
As an example, I have a debit card with a major U.S. bank and was out and about and decided to buy a few things at Best Buy (new t.v. and laptop for the office, etc. etc.) my bill totaled out to approximately $3300 with everything and when I went to pay my card was declined even though there was significantly more than that available. I called immediately, concerned that there was a problem with my account and the Risk Department at my bank said they routinely decline large purchases that are "out of pattern". They released the hold and I was able to complete my purchase.
Debit card portfolios are more restrictive and decline more frequently based on various factors including purchase patterns, Merchant type (based on SIC designator of Merchant supplied during authorization), restricted countries of origin for merchants and restricted merchant types.
The psychological aspects are also obvious. Unlike a credit card to consumers debit cards = real money, no re-payment terms. It's cash that they now do not have for other purchases.