I work at a store and customers purchase things with their debit card. Some tell me to make the transaction as debit, some tell me to make sure the transaction is ran as credit. What's the difference? What are they trying to avoid?
2006-06-25 06:03:30 · 9 answers · asked by Fishboy 2 in Business & Finance ➔ Careers & Employment
I know about credit cards. I'm not talking about that. They want me to run they're "DEBIT" card as credit. If they don't have enough money in their account it still says decline on the machine no matter what. So what's the point of running a debit card as credit?
2006-06-25 06:17:00 · update #1
Sometimes there is a fee associated with running a debit transaction that is very similar to using an ATM machine which is not affiliated to your bank. Some folks want to assure that they will not be charged this fee. Others just don't care to enter their PIN # or might not even know it.
It is also important to note that the store you work at is charged a higher processing rate for a debit transaction run as a credit card than it is charged for a PIN debit transaction. There is also a cap on the amount that would be charged for a debit transaction while a credit transaction (even if a debit card run as credit is used) is charged a flat percentage rate no matter how large the transaction.
2006-06-25 06:50:25 · answer #1 · answered by Jason Bordeaux 3 · 4⤊ 1⤋
Debit cards remove the amount immediately from a bank account. There has to be money in the account for it to work. A credit card just "charges" the amount to an account, for which the person later gets a bill they have to pay. It puts off payment, but it involves interest charges, so it costs money to use it. Credit and debit cards look the same. A credit card is subject to a pre-set spending limit; a debit card is limited by how much money the person actually has in the bank account it's attached to.
2006-06-25 13:07:25 · answer #2 · answered by MOM KNOWS EVERYTHING 7 · 0⤊ 0⤋
Some stores don't get charged a fee for using a debit card but they are charged a percentage for someone using a credit card.
That's why some places they ask if it's credit or debit.
A debit card is "attached" to a bank or savings (or Pay Pal) account that has money in it.
A credit card however you don't have the $ there and you'll get a bill for it later and be charged intrest if you don't pay off the balance in full for the month.
2006-06-25 13:12:01 · answer #3 · answered by classic_tigger 5 · 0⤊ 0⤋
Debit comes from your money (checking account). Credit comes from the bank's money which they are loaning you through the credit card which is paid back with interest. Banks sometimes charge processing fees if the debit card is used as a debit.
2006-06-25 13:08:30 · answer #4 · answered by Kevin 2 · 0⤊ 0⤋
I have heard that if you run it as credit, that the money does not come out of their account immediately. With debit, the money comes out more quickly.
Those people must have low account balances or something.
2006-06-25 13:08:02 · answer #5 · answered by Juicy 3 · 0⤊ 0⤋
credit means they don't actually have the money.... therefore they are using a credit card.... debit means they have the money on the card, that is why they use it as a debit card.
2006-06-25 13:06:52 · answer #6 · answered by heidielizabeth69 7 · 0⤊ 0⤋
a debit card takes money directly from your bank acount so you have to have the money to spend it. a credit card is something were the credit card company pays for it and then you have to pay them bach plus entrist
credit card=no $ needed but have to pay back+intest
debit=you have to have the money in your bank acount to buy
2006-06-25 13:09:02 · answer #7 · answered by rocknrollskwurl 3 · 0⤊ 0⤋
Debit you use your own money
Credit you use the Banks money
2006-06-25 13:10:17 · answer #8 · answered by gnostic 2 · 0⤊ 0⤋
The debit is what you received, and the credit is where you received it
2006-06-25 13:22:18 · answer #9 · answered by koolj 2 · 0⤊ 0⤋