Question: AAA Debit Cards

[Samai139]

Soon I shall be travelling in the USA and Canada and don't want to pile up bills on my Credit Cards---too easy to spend too much. Don't want to carry lots of cash and have found Travellers Checks difficult to cash at times. My question: AAA offers a Visa Debit Card which they claim is accepted by most merchants, hotels, ATMs and can be re-loaded. Does anyone have any experience with these cards, or have knowledge about them?? I have a bank debit card, but don't like to use it outside my home area---fear of losing it/having it stolen. I don't know if there is a service charge for the initial loading of the card. I assume when I use it at an ATM there would be a service charge by the ATM which would be deducted from the amount I've loaded into the card.

[Guest greatness]

well

 

For ATMs I use my ETRADE card. They refund you ATM charge within a couple of days. I find that useful and saves time and money. So I take out money as much as possible when I need it and use cash. You don't have to pay other bank fees either. Anyways, I hope you have a great trip.

[Guest Merlin]

I am not sure why the AAA card would be preferable to your bank debit card. Either could be lost or stolen etc. But no one should be alble to use either without the pin. I suppose with the AAA card you could deposit a specific amount and limit your spending.

[+ deej]

The VISA logo is what gets it accepted most places -- the card will be accepted most places that accept VISA credit cards -- but debit cards are still not universally accepted. Rental car companies generally won't accept them, for instance.

 

Fear of theft or loss is a perfectly valid reason not to carry/use the "live" card. You can limit the amount of cash behind the AAA card. But there will be no escaping fees. It's how the entire banking industry in the US funds itself. It's the modern equivalent of traveler's checks.

[seaboy4hire]

I am not sure why the AAA card would be preferable to your bank debit card. Either could be lost or stolen etc. But no one should be alble to use either without the pin. I suppose with the AAA card you could deposit a specific amount and limit your spending.

 

My debit cards can be used as credit cards at point of purchases therefore no need for a pin just an X for the persons name and they are on their way. Personally I would just stick with my debit or credit card and stay away from the prepaid ones.

 

Hugs,

Greg

[Samai139]

Thanks to all who responded to my question. A couple of points:

1. I can limit the amount I "load" into the AAA debit card, as opposed to my regular bank debit card, and so my spending is automatically limited---as you might guess, I have little discipline when it comes to spending while travelling )

2. I understand that there will be fees and I intend to inquire what they will be---if AAA charges a fee in addition to the ATM companies' fees, then I may have to re-think.

3. If something is lost while away, I would prefer it to be a card other than my bank card---since I always carry my AAA membership card, I can easily call their 800 number and inform them, cancel the card, etc.

4. Still looking to hear from anyone who has actually used the AAA debit card.

 

Thanks again.

[+ deej]

since I always carry my AAA membership card, I can easily call their 800 number and inform them, cancel the card, etc.

 

Yes and no. If your wallet is lost or lifted you'll likely lose both.

 

One tip I read recently said you should copy the front and back of every card in your wallet (front for account numbers, back for phone numbers) and carry the copies separate from your wallet, i.e. in your luggage. That way you have the information when things get lost.

 

(I have copies in my desk at home for the same reason!)

 

Any debit card will have the same issues as all the other debit cards. AAA has added gravitas with us long-time members so I wouldn't worry about it.

[seaboy4hire]

Yes and no. If your wallet is lost or lifted you'll likely lose both.

 

One tip I read recently said you should copy the front and back of every card in your wallet (front for account numbers, back for phone numbers) and carry the copies separate from your wallet, i.e. in your luggage. That way you have the information when things get lost.

 

(I have copies in my desk at home for the same reason!)

 

Any debit card will have the same issues as all the other debit cards. AAA has added gravitas with us long-time members so I wouldn't worry about it.

 

I don't think I would copy the numbers and leave them in the luggage and risk having them lifted from there. But if the op does choose to write them down maybe put them in your carry on and then once checked into the hotel put them in the room safe with anything else you might not want lifted.

 

Hugs,

Greg

[+ deej]

I don't think I would copy the numbers and leave them in the luggage and risk having them lifted from there. But if the op does choose to write them down maybe put them in your carry on and then once checked into the hotel put them in the room safe with anything else you might not want lifted.

 

Hugs,

Greg

 

Same basic idea. Just don't have the safety copies in the same place as the cards themselves.

 

A friend actually uses Google docs to store this information but that means trusting Google. I'm unlikely to go there but do whatever works for you.

[Chuck50]

I have used the AAA Visa cards on a trip and gave one to an escort and was able to later add more money too it. I liked it Was definetly easier than carrying all that cash for your friend/companion.HUGS

[Guest OCBeachbody]

I hate those debit fees.... if someone banking can explain whats the difference?

I know personally I always use my personal debit as a credit card to avoid those fees. If you can do that with the triple AAA debit card score... because realistically your not taking out any money... just charging.

 

Seems I may just have to pop over to my local AAA office and ask. I never even noticed that they had one.

[Diverdan]

Separate Card from Your Bank

 

You might consider getting a second debit/credit card from your bank just for your travels. If you want, you can set a limit on that second card with an "overdraft" protection built in that can only be authorized by you via phone to your friendly neighborhood banker when you are traveling. When I travel Internationally, I always let my bank know how long I will be gone and where I will be traveling. That prevents others from trying to use the card locally in my absence, or if stolen, they can immediately put a hold on that card, as I always carry a second one and place in the hotel safe, either in my room or with the safety deposit boxes that hotels have. My visa card bank is also very good at monitoring the kinds of things I charge to my card, and so protect me that way. Someone once tried to charge a bunch of women's clothing to my account in another city. Since I never buy women's clothing, the credit card company denied the charge and called me to tell me what happened. As an additional precaution, they sent me a new card with only the card number on the back changed. I suggest you talk to one of the officers at the bank where you have your account(s) and see what suggestions they might have. As you can tell, I don't like prepaid cards.

[rvwnsd]

Don't Do It

 

A few things to consider:

 

...

1. I can limit the amount I "load" into the AAA debit card, as opposed to my regular bank debit card, and so my spending is automatically limited---as you might guess, I have little discipline when it comes to spending while travelling )

 

If you take Diverdan's suggestion and open a "spending" account you can accomplish the same thing. You simply transfer small amounts into the "spending" account when the balance is low. or not.

 

2. I understand that there will be fees and I intend to inquire what they will be---if AAA charges a fee in addition to the ATM companies' fees, then I may have to re-think.

Few banks charge a fee to have or use a debit card. If yours does, change banks.

 

3. If something is lost while away, I would prefer it to be a card other than my bank card---since I always carry my AAA membership card, I can easily call their 800 number and inform them, cancel the card, etc.

Put your bank's customer-service number in your cell phone and keep it in your luggage. Most bank VRUs have an option to report a lost or stolen card (generally, it is the first option). They will gladly cancel and re-issue your card. Some even will overnight a replacement. You also have zero fraud liability and the bank is required to provide provisional credit for unauthorized transactions. Private issuers are not covered by the same laws.

 

Here are a few other reasons why a bank/savings and loan/credit union card is a smarter idea.

 

1) Your bank deposits are FDIC insured up to $250,000 if they are held at a US bank or savings and loan and NCUA insured if they are held at most credit unions. (Some CUs use private insurance) The funds are not insured if they are held as a credit balance on a privately-issued debit card. If your bank goes under, you lose nothing and your debit card service continues uninterrupted. If the debit card issuer goes under, you lose whatever balance is stored on that card. Remember, no one has lost a penny in insured deposits since the insurance fund was created in the 1930's.

 

2) Most banks, savings and loans, and credit unions offer online banking, where you can check transactions (even those that are still in process) and get information on ones that are unfamiliar. Some will allow you to dispute a transaction online.

 

3) Despite what you hear on the news, financial institutions are tightly regulated when it comes to processing electronic transactions. Private issuers are not banks and often do not follow the same set of rules. Just ask anyone who has had a dispute with PayPal. Banks are not allowed to have the same Byzantine fraud reporting procedures.

 

Also, rather than make copies of your cards, write down the number, issuing bank name, and issuing bank phone number. If you make a copy of the front and back of the card and the copy is lost or stolen, whoever finds it will have your card number and the 3-digit security code printed on the signature panel. (Amex's is printed on the front of the card)This will enable them to buy things using your credit/debit card number over the phone and on the web. Without the 3-digit code, most merchants will not accept a transaction.

 

Finally, ask yourself this question: Would you purchase roadside assistance from a bank?

[rvwnsd]

I hate those debit fees.... if someone banking can explain whats the difference?...

 

The difference is that VISA, MasterCard, AMEX, and Discover do not allow merchants to charge customers a fee for using their branded card for a transaction processed through the credit card authorization network. The minimum purchase amounts some merchants require are also against the rules. I think they make an exception for gasoline merchants, but don't quote me on that.

[Samai139]

Chuck--thank you very much--I was hoping to hear from someone who had experience with the AAA card and you came through---hugs to you.

For those who worried about my losing my wallet, etc. I don't plan to carry my bank credit card with me, so that won't be a problem. I shall carry one credit card and will definitely write down the 800 number for the company and keep it somewhere other than in my wallet. I also carry a copy of the front pages of my US passport, just in case.

Thanks for worrying about me while I am away---you guys certainly care about your fellow posters, and I appreciate it.

I'll be going to AAA this weekend and getting one of their debit cards--if I get any new information for others who might be interested, I'll pass it along.

[Samai139]

rvwnd--if I got the letters, right. I did not see your excellent argument against the AAA card before I replied to Chuck. I'll go through your arguments again, and talk to people at my bank--I suspect you are probably right--it would be better to open a second account with a limit lower than my checking and savings account has. Sounds like a great idea, and I had not thought of it.

Thanks again to all---I'll keep you posted on what I decide.

[+ ArVaGuy]

The difference is that VISA, MasterCard, AMEX, and Discover do not allow merchants to charge customers a fee for using their branded card for a transaction processed through the credit card authorization network. The minimum purchase amounts some merchants require are also against the rules. I think they make an exception for gasoline merchants, but don't quote me on that.

 

 

Good point. The minimum purchase requirements are against the rules. I had to set up a processing through AuthorizeNet which is one of the merchant account clearinghouses and it’s in their documents that no minimums are required by the banks.

 

However, the merchants that set these limits do so because of the bank processing fees they have to pay. The view being that when the bank takes 1.5% to 3.5% of the total transaction anything under $10 is not worth it.

 

In order to facilitate debit transactions Visa has changed the rules regarding signatures by the customer. That's why you can buy a pack of gum and not have to sign for it. If memory serves the amount that requires a signature on a debit transaction is $15.00 and above.

 

One other issue to look out for on debt and credit transactions. All US based banks charge a 1% transaction fee on international purchases. This used to be absorbed by the banks but three years ago they began passing that on to customers. For some of the traveling staff of the group I work for it was a shock when processing their expense accounts to discover the card issuer charges this fee. I'm not sure if European banks do this or not but it would be a good idea to ask to avoid surprises.

[+ Gar1eth]

Rental car places in the US will not take a prepaid card to initiate a reservation although I believe they will take it to pay for the rental at the end. I believe the same thing with hotels--they won't take a prepaid card as the card on file, but will accept it for payment in the end. My experience in Canada is that the rental car companies there will not take a debit card to initiate a reservation--it must be a credit card.

 

Gman

[rvwnsd]

...However, the merchants that set these limits do so because of the bank processing fees they have to pay. The view being that when the bank takes 1.5% to 3.5% of the total transaction anything under $10 is not worth it...

 

True, but there are several costs associated with cash and check transactions. Checks can bounce. A check authorization service such as TeleCheck charges a fee. The armored courier who takes deposits to the bank charges more for deposits containing cash than for deposits not containing cash. Taking the deposit to the bank also has a cost in the form of risk - risk of being robbed, risk of losing a deposit, and risk of employee theft being a few. Finally, there's the opportunity cost of a lost sale when a customer marches out because they don't have cash to pay for a small purchase. Which is better? 96.3% of the sale or 0% of the sale? When I was setting up stores for a wireless phone company, a store manager balked at the cost of courier services. His boss made a remark that went something like "if we can't afford to operate our stores correctly then we can't afford to operate stores."

 

Rental car places in the US will not take a prepaid card to initiate a reservation although I believe they will take it to pay for the rental at the end. I believe the same thing with hotels--they won't take a prepaid card as the card on file, but will accept it for payment in the end. My experience in Canada is that the rental car companies there will not take a debit card to initiate a reservation--it must be a credit card.

Gman

 

Good point. In fairness, the same holds true for debit cards. Rental car companies often do not accept debit cards at the time of rental. The only one I know of that does that is Enterprise. They put a $300 hold on your debit/credit card. Unlike most rental car companies, theirs is authorized as a purchase. When you return the car they charge the actual rental amount and just let the $300 fall off.

[+ deej]

Good point. In fairness, the same holds true for debit cards. Rental car companies often do not accept debit cards at the time of rental. The only one I know of that does that is Enterprise. They put a $300 hold on your debit/credit card. Unlike most rental car companies, theirs is authorized as a purchase. When you return the car they charge the actual rental amount and just let the $300 fall off.

 

This varies widely, with companies giving local affiliates final say most of the time. I once used a debit card to rent a car at SFO only to have the same clerk at the same counter refuse to accept the same card two months later. The company's official policy on their website basically said "it's up to the clerk".

 

Just a few weeks ago, Enterprise didn't require any card at all for a booking (through Travelocity) but required a credit card at the time of rental.

 

This is one area where you should NOT rely on advice here. Ask the rental company directly.

[rvwnsd]

...This is one area where you should NOT rely on advice here. Ask the rental company directly.

 

Very true. Look for the policy online and print it. If there's an issue at the counter you have the policy in front of you.

[KMEM]

Not only the rental company directly but perhaps the very office you are going to use. Recently I had to rent a car in one town in KY and return it to another. The first office said I had to turn it in at the rental office in the second town; the rental office in the second town said leaving it at the airport would be fine, even though they had no office there. The point as deej suggests is the national policy might be different from local practice OR there may be "wiggle room" in any national policy. Some companies are hungrier than others in these times and will actually try to "serve" the customer. Imagine that.

 

Best regards,

KMEM