A Type of Credit Card that Can't Create Debt

[wren]

The Credit Unions here in Canada offer a new form of MasterCard which works online, by phone, or anywhere else, (except Paypal, apparently). It's for people who don't want to borrow and go in debt. It is linked to your chequing account, and transactions can only be processed if the funds are already in your account. So you're only spending what you already have. The card has a chip, a PIN number, a 3-digit code # on the back, and a Secure-Code password (this last item is for some online sites).

I've had one of these cards for two years, and am happy with it. It has allowed me access to some things only available online, since I have never owned a regular CC. I am mindful that a CC transaction costs the merchant more than one using a debit card, so I only use it where a debit card won't work. (Note: I have the impression that the name 'debit card' has a different meaning in the US. In Canada, debit cards are linked to our bank account, have a PIN#, and work at an ATM and Interac. Sometimes there are transaction fees, depending on the type of account you have. Debit is used a LOT here.

I'm posting about this because I know there are other Canadians on these forums. And perhaps there are Credit Unions in the US that have this product available. Here is a link with the information. (Sorry I don't know how to embed links into posts any other way).

https://www.cua.com/Home/ProductsAndServices/YourMoney/CreditCards/GlobalPayment/GlobalPaymentMastercard/

[ToomuchStuff]

The secure code is a separate thing here (must sign up separately). New cards are starting to have chips (not having a chip will transfer fraud responsibility to whoever doesn't have it or the reader starting in the future). The security code is part of both CC and DC's, and pin access numbers are for ATM's (never used one).
I don't know how Canada works, but in the USA, if you use your debit card without a pin number, your running it through the credit card system. This offers you better protections then the Debit card system (things like extended warranties, less risk for your information being used to drain your bank account, etc), but STILL comes out of your linked account (typically a checking account, but I have heard of a few that might be linked to a savings account, or that could be a contract issue). This also costs the retailer more (credit fees are higher then debit fee's, but debit fee's allow for easier recovery typically on bad transactions over checks).
There are international cards that can be used here, however to the best of my knowledge, the chip reader tech, is not the same, currently across the world (why there are regional cards). Global business travelers use them.
Then there are prepaid cards, which are effectively a debit card that used the Credit card system (paid in part by the higher fee's to the retailer which get passed onto the consumer in higher prices).

Cash is still cheaper for everybody.