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

pridehappy

I could imagine the idea is that they want you to use it as your main current account, and are trying to deter those who simply switch for the bonuses. By only offering the full amount to complete customers, it means that they are discouraging those who move away which will leave them with a loss. That’s why the standard switching offer is so low, as they want switchers to choose other banks so they don’t need to pay out.

lr1277

ZeroSum said:

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

If memory serves based on posts on ths forum, HSBC don't allow debit card payments for their credit cards. Also I don't think FD allow debit card payments.Interestingly enough, the old John Lewis card which was run by HSBC did allow debit card payments.

And if your DD is only set to pay the minimum, then you will have to make a Faster Payment or a BACS transfer to pay the remainder.

adamp87

I always thought the idea behind it was to get you to use the card and the bank. The more you use it the less likely you probably are (MSE’s aside) to switch or move away 

pafpcg

ZeroSum said:

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

The cashback-paying Co-op "Membership" credit card account allows only Direct Debit, Faster Payment (BACS) or cheque!

ZeroSum

lr1277 said:

ZeroSum said:

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

If memory serves based on posts on ths forum, HSBC don't allow debit card payments for their credit cards. Also I don't think FD allow debit card payments.Interestingly enough, the old John Lewis card which was run by HSBC did allow debit card payments.

And if your DD is only set to pay the minimum, then you will have to make a Faster Payment or a BACS transfer to pay the remainder.

I'm guessing it'll be the ones that are linked to a current account. M&S which is part of the HSBC group does allow card payments but no longer has a current account.

Have just had a look at my FD card, and once again the bank with the supposed great service you can't just transfer money between your own accounts like other banks, its this weird convoluted method of paying FD themselves & using your card number a reference. It's not obvious how to do it, you need to watch a tutorial. They're absolutely stuck in the 1990's with so many of their processes & ML keeps promoting their great service 

WillPS

Natwest Group also don't allow payment of credit cards by debit card.

Paying by debit card basically wipes out any chance a credit card company has of being to earn anything from interchange. I'm surprised so many still support it frankly (but in the meantime it's an excellent way of fulfilling a number of Halifax Reward criteria!).

WillPS

nic_c said:

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

This approach is highly likely to draw unwanted attention from your credit card issuer - I'm sure I've read that Capital One have taken a dim view of this in the past.

I do £500 chunks which I think is reasonable.

PRAISETHESUN

I've been paying off my Amex using small amounts like this for years without issue, although I have noticed this month that they are really pushing for the bank transfer option - the debit card option is at the bottom of a very long list now!

WillPS

PRAISETHESUN said:

I've been paying off my Amex using small amounts like this for years without issue, although I have noticed this month that they are really pushing for the bank transfer option - the debit card option is at the bottom of a very long list now!

Yes. They also rate limit you at one debit card payment per hour which is annoying.

phillw

I got a letter from my credit card provider telling me about irregular activity when I was putting through £1 transactions.