Why do banks with opening offers (and regularly) like you to use the debit card

red_flump

I've just moved my 2nd account to TSB for the offer, and I am trying to maximise the payout.  I will reach the 20 debit card transactions and I wondered why they like you to do this.

Normally everything would go on the credit card, one payment when the statemnt comes round. Leave enough in the current ac for DDs and the rest to a savings pot etc.

solentsusie

I do exactly the same as you, hardly ever use my debit card, everything goes on the credit card and only DD's covered in my bank account.  

Perhaps they are trying to track spending habits?

MorningcoffeeIV

red_flump said:

I've just moved my 2nd account to TSB for the offer, and I am trying to maximise the payout.  I will reach the 20 debit card transactions and I wondered why they like you to do this.

For the data, the income through fees and to become front of wallet.

eskbanker

The switching offers are intended to lure people in and stay there, using the new account as their 'main' current account and potentially using more of the bank's products and services, so they introduce hurdles to jump over, that may deter those who can't be bothered to (ab)use the incentives and switch repeatedly....

GeoffTF

Credit cards give interest free credit. When people switch to using debit cards, they usually have the money to cover the expenditure in their bank account, usually without receiving interest on that money. The banks would love people to switch expenditure from credit cards to debit cards.

PixelPound

Use credit card as normal, pay off credit card in 1/20th increments using debit card. 

born_again

nic_c said:

Use credit card as normal, pay off credit card in 1/20th increments using debit card. 

Except not all credit cards allow debit card payments.

Arnie7com

I'm planning on doing the £1 a day Amazon top-up to take care of the 20 debit card payments. Zero hassle once it's setup and a fiver a month for the first six months after which I'll be upgrading to plus to get the £3/month.

boingy

I'm another one who uses a CC for most things. Not for the credit as I pay it off every month but for the simplicity of it. The bank statement stays neat and tidy and the CC bill itemises stuff if I need it. We also have a joint CC for groceries and other house stuff for the same reason.

I rarely use the debit card.

ZeroSum

born_again said:

nic_c said:

Use credit card as normal, pay off credit card in 1/20th increments using debit card. 

Except not all credit cards allow debit card payments.

Which ones don't & how do you pay them off if you only have min payment set as a DD? 
I've never known one that doesn't allow debit cars payments

surreysaver

born_again said:

nic_c said:

Use credit card as normal, pay off credit card in 1/20th increments using debit card. 

Except not all credit cards allow debit card payments.

Get one that does