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Do you prefer using your bank account or your credit card for your monthly pre-authorized purchases?

Are there certain kinds of bills you'd prefer to pay with your bank account or credit card? Why would you choose one or the other method of payment?

5

CC always (applies only if you pay your balance in full). First you rack up points on your card, second if there is an unauthorized pull a Cc will help you a bank may or may not.

As a general advice don't hand out your banking information like a credit card number.

Now paying bills through the bank is a different matter. This advice applies to companies that would like to pull money from bank accounts. Never do that if Cc is an alternative.

  • 1
    +1 for the ccard protections. Just be sure to pay your credit card off so you don't rack up the debt either. I hear stories all of the time about folks' bank accounts being debited more than once, etc. Just use a credit card. – Mike May 9 '10 at 15:52
  • The account/routing number system of checking accounts is surprisingly lax. It is very easy for someone to clear out your account if they get your details (e.g. if a hacker compromises the site, or someone steals a copy of your checkbook). With a credit card, you have an extra layer of fraud protection. – myron-semack May 11 '10 at 17:46
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I stopped using pre-authorized payments for things like telephone etc., because it made it more possible/likely for a fraudulent charge to sneak by. But if there is an occasion for choosing pre-authorized payments (like charities, and places of exact fixed price) I use my credit card because then I also get points. Furthermore, I reason (perhaps wrongly) that if there is intermediary step between actual money (bank account) and the source of the bill then it gives me better chance of catching irregularities and hence a little safer. I am sure other members here will laugh my naivety, but there you have it.

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Credit Cards when I can. The reason if there is fraud or disputed charges (like I very much disagree with the cell phone charge) a debit card is already gone and I have to get the money back, versus a credit card where I haven't paid anybody anything.

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