Credit and Debit

[bgsugirlie]

Do you guys know the little cards you use to take out money from the ATM? I'm a little curious about something....I know you can use it at stores to pay instead of using cash. However, when you have to choose credit or debit, how do you decide? I have no idea what the difference is.

[midwesterngirl]

My bank charges me $1.50 per use when I use my bank card for a debit purchase. I don't get charged at all when I use it for a credit purchase.Not to sound flippant,but that's how I decide and therefore, I nearly always use it it as a credit card.

[PhiPsiRuss]

Originally posted by OohTeenyWahine
If the card accesses your checking account, that's your debit card. You hit debit. If it's an account outside of your bank checking account, that's your credit card. Then you hit credit.

I think that what she means is that she has a MasterCard or Visa debit card, and that she has the option of using it as a debit or credit card. In both cases, the money is immediately withdrawn from her checking account.

It is less expensive for the business if its used as a debit card because of much lower transaction fees. I use mine as a credit card because I get miles if its used that way.

[smiley21]

a Master Card/Visa check card is very handy, when you have to use it as a credit card, cause it is still taking money out of the checking account. for example, at a sit in restaurant, you have to use it as a credit card.


and for your bank to charge you for using your debit card is crazy

[bgsugirlie]

So the bank takes money directly out of your checking account for both credit and debit purchases? I'm confused then...what's the difference between them?

[DGqueen17]

There really isn't a big difference between debit and credit. One you sign for (credit) the other you use a PIN number (debit).

It's just easier to have a debit card with a Visa or Mastercard logo because that way you can use it at restaurants and stores, places that wouldn't take just a ATM card.

Also, some stores do not accepted the debit option because when you use it as a credit it is guaranteed by Visa to be paid. A debit can go through but then when it hits the account the money might not be there....

[AlphaSigOU]

The newer credit/debit cards with the Visa/Mastercard logo on them look like credit cards, act like credit cards but instead of taking money out of a line of credit, it's taken out of your checking account. Most credit card readers won't know the difference. If you use it as a debit card, you can get cash back with your purchase at the point of sale, where you won't if you use it as a credit card.

A word of caution: some major rental car companies and hotels will not knowingly accept a debit card for reserving a car or a room, as they usually hold back at least one night's rental. They will, however accept a debit card for final payment.

[TheEpitome1920]

My bank charges $1 if I use my debit card as a credit card so I ALWAYS ask for debit. Those fees add up since I rarely carry cash.

[Intense1920]

I use my MC debit card very often. I don't remember the PIN so I only use it as credit card. If I need cash I pull out my ATM card.

[AGDee]

My bank doesn't charge me no matter how I use it and when people ask me "credit or debit", I say "Whichever is easier for you". I never know which to pick either! If it is cheaper for a store to process a debit, then I'll do that from now on.

Dee

[USFSDTAlum]

I get a $0.25 POS (point of Sale) transaction cost for using mine as a debit card. So its always credit.

[smiley21]

to my knowledge, credit takes longer to transact than debit.

[pink and green]

I normally use debit at places like the grocery store & CVS, where I can get cash back if I need to and will not return anything I've purchased. At clothing stores & such, I use it as a credit, because if I decide to return anything, I don't get the cash back in my hand. That way it goes back in my account & I am less likely to spend it on dumb stuff.

[Tom Earp]

Your bank card if given to you by your bank can be used as either a Debit Card (ATM) or a Charge Card.

According to my processor, the bank doesnt charge a fee if you are making a purchase but it you use another bank ATM it does!

For a small business such as me, It cost me a swipe fee and a process fee through a Credit Card usuage for them to processe it and it will go onto you MC/Visa Statement. If you do not pay off ballance each month, the % rate can eat you up Make sure you look at % of interest on unpaid balance on your next statement!

If in doubt, call your bank on Your Debit/ATM card and ask them. Give a small business man a break will you.

They keep wanting to give me one and I say what part of know dont you understand?

Debit by the way comes out of your account ASAP and Credit gives you about 24 days as they changed from 30 days couple of years back!

Debit is like writing a check, make sure you take it out of your checking acount on your Check Register Immediatley!

[AOII_Luv]

Here are a few things that I learned from working in retail for the first time, about Credit vs Debit...

1. Depending on your bank, it could take up to 7 days to see a Credit purchase post on your bank account. With Debit, you can pretty much see it within a few hours of purchase.

2. In some stores, like mine, if you don't sign you Credit/Debit card and you use it as Credit, you may be asked you show a picture ID. If you use it as Debit, your PIN acts like your signature and typically don't have to show an ID.

3. And then what other people have mentioned about being charged to use it as Debit. The problem is here that at some stores the reader automatically brings up a number pad for a PIN to be entered. If someone doesn't want to use Debit, you have to go through the whole process of canceling and hitting a series of numbers so the person can use it as Credit...pretty inconvinient for both the cashier and the person buying.

4. Many people assume that since one is using a Debit card that all places give cash back...well, they don't! People look at me like I have a third eye when I tell them that we can't give them cash back!