[BkyMonster]

Hadn't seen anyone post about this yet...
So for people still considering banks and wanting a Visa Debit Card, Westpac is no longer the only choice, now you can get one from Kiwibank. :)

http://www.kiwibank.co.nz/visa-debit-card/apply.asp

[mmcguire2020]

I just got mine in the post it's great :) but I already have a WestPac debitplus but I like kiwibank better.

[urban78]

Looks like ASB are onto it as well :cool:

https://www.asb.co.nz/visadebit#from-banner=visa-debit-large-banner-personal

Jen :)

[mmcguire2020]

Wow thanks for the news :) hopefully BNZ will have one next as my wife banks with them :):clap

[Kanga]

Oh that's great- EFTPOS is so annoying and you end up getting a credit card for online purchases. It's a bit different again here in Oz and I've not quite got my head around it ...

[Mrs Pony]

We have a Kiwibank debt card! It's pretty too! You have 5 or 6 designs to pick from!

[Philip10]

What is the difference between Visa Debit Card and normal Visa Card and do I need one as I have a Kiwibank Master Card are they the samething :confused:

[BkyMonster]

Visa debit works like a credit card but takes the money out of your checking account rather than having a balance to pay at the end of the month.

[James 1077]

What is the difference between Visa Debit Card and normal Visa Card and do I need one as I have a Kiwibank Master Card are they the samething :confused:

A visa debit card uses money that is in your bank account - so, unless you have an overdraft, you don't go into debt by using it. In this way it is basically the same as an EFTPOS card - except you can use it online, overseas etc.

A normal visa card / a mastercard is a credit card so you do go into debt when using it. You then have to pay off this debt - either at the end of each month or over time.

[akp713b]

I got my ASB Visa Debit card last week and I've already used it to top up my phone card and make an online purchase, something I couldn't do with my old eftpos card. My old card was also so worn out it took several attempts to make it work at some machines. The only downside is this new card has a computer chip, like some credit cards have. This means it has to be inserted, not swiped, at some eftpos machines and some clerks don't know ow to do that yet. I'm sure they'll get the hang of it soon as more ASB debit cards show up.

[sbinder]

I guess I have a silly question. It seems all three banks charge an annual fee (currently $10) for their debit cards. Now, perhaps I was spoiled in the States, where debit cards are now commonplace - standard with most accounts and free. But if I already have both EFTPOS and credit cards, what do I gain from paying the $10 annual fee for a third card?

(two minor assumptions here - first, I don't mind having a balance to pay off monthly, and second, I manage to get back enough in hotpoints to offset the annual fee, even if I disagree with it as well! :) )

[IanW99]

I guess I have a silly question. It seems all three banks charge an annual fee (currently $10) for their debit cards. Now, perhaps I was spoiled in the States, where debit cards are now commonplace - standard with most accounts and free. But if I already have both EFTPOS and credit cards, what do I gain from paying the $10 annual fee for a third card?

(two minor assumptions here - first, I don't mind having a balance to pay off monthly, and second, I manage to get back enough in hotpoints to offset the annual fee, even if I disagree with it as well! :) )

There is no benefit for you.

Unfortunately many people aren't eligible to get credit cards in NZ especially when they first arrive.

Ian

[BkyMonster]

But if I already have both EFTPOS and credit cards, what do I gain from paying the $10 annual fee for a third card?

(two minor assumptions here - first, I don't mind having a balance to pay off monthly, and second, I manage to get back enough in hotpoints to offset the annual fee, even if I disagree with it as well! :) )

I guess you wouldn't gain anything. We are happy with not having a credit card and mainly use eftpos as it is, but when we need to make an online/overseas purchase or a credit card is required (hotel reservation etc) we like having it attached to our actual money. We didn't really find $10 per year onerous.

[urban78]

I agree with Ian and Becky. OH and I already have EFTPOS cards and a credit card, so there was no benefit for us to get a debit one, especially because we already pay an annual fee for the credit card.

Jen :)


I guess I have a silly question. It seems all three banks charge an annual fee (currently $10) for their debit cards. Now, perhaps I was spoiled in the States, where debit cards are now commonplace - standard with most accounts and free. But if I already have both EFTPOS and credit cards, what do I gain from paying the $10 annual fee for a third card?

(two minor assumptions here - first, I don't mind having a balance to pay off monthly, and second, I manage to get back enough in hotpoints to offset the annual fee, even if I disagree with it as well! :) )

[Derv]

There's no fee at the moment on the Kiwibank Visa Debit - it's a special opening offer where the fee is waived for the first year. Don't know how long the offer will last though.

[Mrs Pony]

I think it's also waved if you have X amount ... sorry I can't remember the details...

[sbinder]

And they certainly are more attractive than the boring ol' Westpac credit cards. Course, I'm a bloke so, naturally, I cannot let something shallow like attractiveness dictate how I spend my money! :)

[chocolate cake]

I guess I have a silly question. It seems all three banks charge an annual fee (currently $10) for their debit cards. Now, perhaps I was spoiled in the States, where debit cards are now commonplace - standard with most accounts and free. But if I already have both EFTPOS and credit cards, what do I gain from paying the $10 annual fee for a third card?

(two minor assumptions here - first, I don't mind having a balance to pay off monthly, and second, I manage to get back enough in hotpoints to offset the annual fee, even if I disagree with it as well! :) )

Pretty much nothing. Difficult to see what the fuss is about, Visa Debit Cards have been around a decade at least in the UK.

I'm happy enough with EFTPOS card which I rarely use and a Visa Credit Card (the latter's actually available free from Kiwi Bank). Most of my spending goes on the latter though I always settle in full.

Credit Card wise though they can be difficult to get in NZ, NZB seemed to think they were going out of there way to match my UK limit GBP with the same figure in NZ$ but obviously much less.

[Ramo]

I guess the closest to Visa Debit we had in the UK was Maestro/Switch, so compared to the UK it isn't a big deal at all. But as Ian says, for recent arrivees (like myself), it is the only option for buying online.

Additionally I noted that while on holiday in the States, my friend's Visa Debit card (you can get them in the UK too), wouldn't let him take cash out of certain ATMs - whereas mine had no issues whatsoever. Not sure if anyone else has ever experienced this problem with Visa Debit.

As for the credit card limit - maybe a clue to why NZ banks are now doing better than UK banks!

[bobo]

I guess the closest to Visa Debit we had in the UK was Maestro/Switch, so compared to the UK it isn't a big deal at all. But as Ian says, for recent arrivees (like myself), it is the only option for buying online.


Visa Debit is the rebrand of Visa Delta, And has been around since the 1980's ish. Maestro is really just Mastercards version of the same thing. I used to work for a EFT terminal manufacturer in the UK it not a hobby.



As for the credit card limit - maybe a clue to why NZ banks are now doing better than UK banks!

I use my credit card more than any other form of payment so this can be a real pain in the a@se. Also when we 1st arrived our origional bank said no to us getting a credit card but preapproved me for a morgage in the same week. No longer at that bank

[Kanga]

We had a credit card but when we sold our house and payed off the mortgage the bank just froze our card without saying anything- even though my husband was still earning and we were then a better credit bet than previously as we no longer had an ever-increasing mortgage to service! Eventually they let us keep it but only once we'd 'secured' $500 against it- so $500 of our cash in our savings account was sort of locked in as security against the credit card until we closed the credit account even though we got the credit card before the mortgage!

[Ramo]

Regarding credit card Bobo, I was the same in the UK, that is most of my expenditure would be on my credit card (which I paid off each month so incurred no interest). There was also no annual fee and cash back, so it became a bit of a no brainer to use the credit card - so long as you pay it off each month. Indeed, you also got purchasing protection with a credit card - don't think the same applies if you pay by debit card.

So given the choice, I'd agree, there is no benefit for Visa Debit for many - except the rather unusual situation where you have no credit history and have to put a deposit a la Kanga, in order to get one.

With credit conditions tightening globally, this should (correctly) reign in the rather astounding amounts of credit extended to basically anyone (in the UK and US that is). At the end of the day, a credit card amounts to a rolling 'loan', and I think the past 2 years have proven conclusively how bad banks have been at rationing their lending capabilities in the UK and US...

[chocolate cake]

I guess the closest to Visa Debit we had in the UK was Maestro/Switch, so compared to the UK it isn't a big deal at all. But as Ian says, for recent arrivees (like myself), it is the only option for buying online.

Additionally I noted that while on holiday in the States, my friend's Visa Debit card (you can get them in the UK too), wouldn't let him take cash out of certain ATMs - whereas mine had no issues whatsoever. Not sure if anyone else has ever experienced this problem with Visa Debit.

As for the credit card limit - maybe a clue to why NZ banks are now doing better than UK banks!

Don't think any of the UK banks problems can be traced to credit card debts. But there's no doubt they're in a hell of mess. The people responsible for their policies, knighted & now sitting on tidy pension plans.

[Ramo]

True they're not the actual root of the UK banking problems, but I was talking about the general lax lending policies of which enormous (relative to the ability to repay) credit card limits are an indicator. However it wouldn't surprise me if credit card defaults will be the next issues bank's face, especially as unemployment is unfortunately creeping higher.

Certainly agree with you on Fred the Shred and Merv the Swerve...

[bobo]

True they're not the actual root of the UK banking problems, but I was talking about the general lax lending policies of which enormous (relative to the ability to repay) credit card limits are an indicator. However it wouldn't surprise me if credit card defaults will be the next issues bank's face, especially as unemployment is unfortunately creeping higher.

Certainly agree with you on Fred the Shred and Merv the Swerve...

Ok I do agree that UK banks etc were overly keen to give credit/store cards and high limits to people who were not good risks. But NZ seems to be to far the other way and give very low limits. It was just a few weeks ago that I went to buy a new bathroom suite, tiles etc but hit my limit. I had to pay the card online and then wait a few days before I could pay for the rest.

I do still have and use a UK credit card, and pay it with money in a UK account.

[James 1077]

Ok I do agree that UK banks etc were overly keen to give credit/store cards and high limits to people who were not good risks. But NZ seems to be to far the other way and give very low limits. It was just a few weeks ago that I went to buy a new bathroom suite, tiles etc but hit my limit. I had to pay the card online and then wait a few days before I could pay for the rest.

I do still have and use a UK credit card, and pay it with money in a UK account.

Which is partially the point of having a debit card - as then the limit is effectively however much you have in your account at the time.

I don't have a credit card as I'm not strong willed enough to avoid the "debt temptation" - so debit cards make the most sense to me!

For something like a bathroom suite as a bank you shouldn't want to tempt someone to paying for the suite on a credit card and not being able to pay it off in full - personal loans are for that sort of thing. So, IMHO, you shouldn't have credit card limit that would allow you to buy something of that size. Perhaps the ability to pre-pay the card so that you could do it in one transaction would be good though (to take advantage of air miles etc).

[bobo]

Which is partially the point of having a debit card - as then the limit is effectively however much you have in your account at the time.


No in NZ most debit cards have a daily limit, less than my credit card limit, so that would not have solved my problem. And its the account tied to the card. So having money in a savings account is no use if the card is for your cheque account. I agree debit cards are good for those people who don’t want or should not have a credit card. It just at times does not suit me to have a credit/debit card with such a low limit.




For something like a bathroom suite as a bank you shouldn't want to tempt someone to paying for the suite on a credit card and not being able to pay it off in full - personal loans are for that sort of thing. So, IMHO, you shouldn't have credit card limit that would allow you to buy something of that size. Perhaps the ability to pre-pay the card so that you could do it in one transaction would be good though (to take advantage of air miles etc).

I disagree. As a bank you do want people use a credit card and then not pay it off in full as they make more money from people who keep a balance. I would have thought a bank would love for me to take 6 months to pay for my purchases rather than clear the balance each month.

Also the bathroom suite IMO was not a huge purchase.

[James 1077]

No in NZ most debit cards have a daily limit, less than my credit card limit, so that would not have solved my problem. And its the account tied to the card. So having money in a savings account is no use if the card is for your cheque account.


Westpac told me that the Visa debit card limit was whatever I had availble in my cheque account at the time. Yes, anything in savings isn't included but it just takes a quick phonecall / log on to the internet / visit a cashpoint to move money over.



I disagree. As a bank you do want people use a credit card and then not pay it off in full as they make more money from people who keep a balance. I would have thought a bank would love for me to take 6 months to pay for my purchases rather than clear the balance each month.

Also the bathroom suite IMO was not a huge purchase.

As a bank you want people to put lots of little things onto their credit cards and not pay the balance off. That way you get the merchant fees and the interest.

My point on something like buying a bathroom suite is that it isn't what credit cards are designed for - they are designed for people to buy smaller items as they need them. A bathroom suite is a large item that will last a long time - it therefore makes sense, if you don't have the money, to take out a loan over a number of years to spread that payment. Credit cards shouldn't be used for things like that and, I think, that NZ banks have it right limiting card limits to such an extent that they can't be.

[bobo]

Westpac told me that the Visa debit card limit was whatever I had availble in my cheque account at the time. Yes, anything in savings isn't included but it just takes a quick phonecall / log on to the internet / visit a cashpoint to move money over.

The terms an condition state a limit. $10,000. Which granted is not bad at all, twice the ASB limit.
When I am in a plumber’s merchant logging online to move money is far from convenient.



As a bank you want people to put lots of little things onto their credit cards and not pay the balance off. That way you get the merchant fees and the interest.

In a previous post you stated "as a bank you shouldn't want to tempt someone to paying for the suite on a credit card and not being able to pay it off in full" . Are you now suggesting that bank is happy for me to spend up to my limit and pay it back over a long period as long as I only buy socks and underpants?



My point on something like buying a bathroom suite is that it isn't what credit cards are designed for - they are designed for people to buy smaller items as they need them.

?????? They were originally designed so people did not have to carry large amounts cash or cheque books. And allow people to pay for purchases over short periods of time if they so desired. The single item purchase amount was never a stipulation of the bank/client agreement.



A bathroom suite is a large item that will last a long time - it therefore makes sense, if you don't have the money, to take out a loan over a number of years to spread that payment. Credit cards shouldn't be used for things like that and, I think, that NZ banks have it right limiting card limits to such an extent that they can't be.

But at no point did I pay for this over a period of time. I have never taken a loan, HP etc other than a mortgage. And never roll a credit card balance over. The bank can see that I have enough funds to cover a higher limit.

I had to pay the card balance early so I could then order and pay for tiles with the card. My problem is the fact that I could not do it all in one day, but had to wait till my next day off to travel back to order tiles. So infect it cost me more in the long run. The bank can see how much money I have invested with them.

What does the life expectancy of the item do with which method I should use to pay for it? Would you have been happy if I had written a cheque?