Ok this is what I'm confused about. When at the grocery store or gas pump I will use my bank's ATM checking card that has the visa logo. Aside from flexibility of having merchants widely accept visa why is the set up that way? Second question is when at the pump or store it asks for credit or debit after you slide your visa checking card. Why does it do this? I mean can't the machine tell its obviuously a debit card and the funds are coming from my checking acct? Why would it ask this and what impact would it have if I chose credit rather than debit when using my card. Someone help me! Thanks!
2006-12-16 07:42:45 · 12 answers · asked by Truth 2 in Business & Finance ➔ Credit
Some machines are set up this way. They let the consumer decide. Some credit cards can unofficially be run as a debit card but counts as a cash advance.
The reason is that some merchants let you decide. Some banks and merchants charge you if you run it as a pin transaction then as a signature transaction.
Just for info
U.S. debit cards that have a Visa or MasterCard symbol
Can be used at least two ways. A pin transaction you would select ATM/debit or a signature transaction you would select credit button than sign for your purchase. Either way it comes out of your account right away.
2006-12-16 09:58:30 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The use of credit cards made online purchases very easy. The buyer only needs to input the number of his or her credit card and the desired amount will be charged from buyers available credit amount. When we open an account in any one the banks, the bank will offer us the possibility to connect a credit or a debit card to the account. With the help of the cards we will be able to pay for our expenses without withdrawing cash. The main difference between debit and credit cards is that with debit cards we can spend only the exact amount of money we have on our account. On the contrary with the debit cards, in the case of credit cards the bank offers us a certain amount of loan and basically we can spend more money than we have on our account. After using this feature of the credit card we are required to pay back the loan in monthly rates with interests. There are advantages and drawbacks with both types of cards. The main advantage of the debit card is that we learn to spend exactly what we earn and we will not get into unnecessary debt. The other advantage of the debit card is security. If we are frequently using the Internet for various shopping there is a chance that we visit an unsecured website and we get our card details stolen. If we suspect this kind of situation we have to immediately cancel our card in the bank which issued it. The good thing with the debit card is that the thief can only steal the exact amount of money we had on our account and nothing more. The negative thing with the debit card is that we always have to know our balance and plan our shopping in front. The main advantage of the credit card is that we can spend more money than we have on our account. The bank grants us a certain amount of credit that we can repay in monthly rates with interests. This is a positive thing because we can spend more money than we actually earned in some emergency situations. This is also the biggest drawback of the credit card. The possibility to spend more money than we own can lead to unnecessary shopping and major debts toward the bank. The urge to shop and spend money on non essential items is also one form of addiction.
2016-05-22 23:45:50 · answer #2 · answered by Jamie 4 · 0⤊ 0⤋
Debit cards are free, always, from your bank. However, some merchants will charge you to use the debit card.
They are a direct link to your checking account, and you use them with a PIN. When you use your PIN, the money is immediately deducted.
If you go over the amount in your account, you will be charged overdraft fees by the bank...about $30 a pop.
Most debit cards have Master Card or Visa logos. You can purchase things by your signature, but again, you must have the money in your account for the transaction to go through. When you use your signature to make a purchase, the money comes out in 3 days.
2006-12-16 09:56:56 · answer #3 · answered by Anonymous · 0⤊ 1⤋
It is set up that way for convenience. If you want the money to come from your checking account immediately, use the card as a debit card (it asks you on the screen, in most cases). If it was set up as a credit card/debit card, choosing credit would earn you a bill at the end of the month. If you chose credit and it wasn't set up for credit, it would be refused and you would have to begin again.
2006-12-16 08:47:06 · answer #4 · answered by Kathie G 1 · 0⤊ 0⤋
For some people, the Debit Card is the ONLY Card, because you must have money on deposit at the bank or Credit Union, or the transaction will be declined, however, if you have a savings acct with the signed agreement authorizing OVER-Draft protection then the transaction may clear(be paid), ! But, If you have Good or Fair credit history and agree to the terms a Credit Card may work for you, only because it DELAYS the payment until a later date to be PAID, (penalties incurred for MISUSE) ..!
2006-12-16 07:59:46 · answer #5 · answered by B_G_PECK 1 · 0⤊ 1⤋
You already know the difference between debit and credit...Your debit card says either Visa or MasterCard because some cards can be both, a debit and a credit card and you have a choice....If your card is only debit and you push credit, it will not be approved, and will be declined.....Hope this clears this up for you...
2006-12-16 07:47:31 · answer #6 · answered by ? 4 · 0⤊ 1⤋
Credit cards only require a signature without ID. Debit cards require your pin number for identification purposes and takes a moment longer to process because of it. Also businesses are charged a fee for credit and not debit. Although debit is a little longer process, most businesses will pick it when you tell them it doesn't matter because of the fee consumers are not aware of.
2006-12-16 07:56:25 · answer #7 · answered by Gregory D 1 · 0⤊ 1⤋
Debit comes straight out of your bank account. They are basically an ATM card that businesses take. Credit, you make payments on loaned money.
2006-12-16 07:52:53 · answer #8 · answered by Anonymous · 0⤊ 0⤋
One thing is if your debit card is stolen and used the money is gone. Where has a credit card it is not. You can dispute illegal charges. And it is the responsibility of the vendor to make sure who he is extending credit to. The odds of getting your money back are way better with a credit card.
2006-12-16 07:52:29 · answer #9 · answered by Anonymous · 0⤊ 1⤋
well debit you already have the money on the card and credit you borrow the money tell the end of the month
2006-12-16 07:51:11 · answer #10 · answered by Anonymous · 0⤊ 1⤋