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Canadian banking works quite different than in the US. We have had universal direct debit systems for some years now, and they work very well.
However, the debit card muct always be used with an electronic PIN-pad. This means that for a deposit on a rental car and some other items, a debit card can only be used if they swipe your card for essentially a "cash" deposit. I don't like this. For most rental car agencies, the cash deposit is VERY high, and with a debit card it is much more difficult to dispute the charge.
When I was working I had to use my own money for entertaining, and then get reimbursed by the company. I found a credit card very handy for this purpose, as I could collect affinity points and carry the balance interest free for a few days while I got my cheque. Since my expenses often exceeded my monthly take home pay, simply "fronting" the cash would have been difficult and meant foregoing investment income on savings.
But, when no longer needed for work, I severely reduced our CC limit to help gaurd against fraud. When I wish to buy something on the CC to collect points, I simply transfer the amount from my chequing account to the CC, and then go buy it.
Credit cards can be used responsibly, but few people do. It's unsecured credit and carries a horrific interest rate. The credit is easy to use thanks to univesal acceptance for many cards, and the grantors are much more liberal in their credit granting. I often find that low income families cannot get a mortgage for $500 a month, which is less than the $1000 in rent that they pay, and could easily afford, but can get a credit card without any hassle.
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