When I use my debit card at the supermarket to pay for groceries why am I asked "debit or credit"?

Question

Does that mean that I will get a bill from the credit card company that sponsors my debit card? Why use debit? Why use credit? Is there any advantage or disadvantage to using either?

Answer 1

They are just asking whether or not you want to use a credit card (if you have one) or a debit instead. It is just simply a choice that companys are asking people to make transactions faster. Instead of using cash, they find that credit/debit cars are faster at the tills, that why they ask you.

Answer 2

For two reasons. First "Debit" means the money is coming out of your debit account (may be a checking account or other account specifically for the card) "Credit" means the charges go to your credit card company (if the card is a credit card) and you get to pay the amount back with interest. If your card is only a debit card then the amount will only come from the account set up for the card. If the card is only a credit card the amount gets charged to your credit card. The reason they ask (or it's on the machine) is because some cards are set up to be both debit and credit and either the person or the machine may need to know where to send the charges. The only advantage that I know of currently is that some banks are now charging a "per use fee" when you use a debit card. Hope this helps>

Answer 3

I am assuming we are talking about a bank debit card such as a check card that has a Visa or Mastercard logo on it.
You can use either. The cards are both debit & credit & the machine is giving you the option as which you want to use. They both will come from your checking a/c.

Credit- you will have to sign for the transaction. It will come out of your account in a couple of days.

Debit- you use your PIN for it. You will probably be charged a fee by your bank of about $.25-$.50 b/c it costs the bank a fee for the transactions. It will come out of your account right away.

Using credit gives you all the protection of using a credit card as far as fraud & refunds are concerned. Credit is pretty much like using cash so you are limited to dispute protections.

Unless it IS a credit card, you will NOT get a bill for it! A debit card is not credit! Even if you use the credit option.

Answer 4

My debit card can be used either way, but the debit shows up on my bank statement and I do not get a separate bill from the credit card company. Also, if you use your debit card as a debit card, you can get cash at the time of your purchase, where you can't do that with a credit card.

Answer 5

First of all, a debit card is NOT a credit card. It has absolutely nothing to do with credit. You do not have a credit card, and will not get a bill from VISA/MasterCard, etc.

The only difference relies on your bank. Some banks will charge you a fee for using debit but not credit. Some banks will charge you a fee for using credit but not debit. Some banks will charge you a fee for using either, and some won't charge you at all. This varies bank to bank.

By using debit, you just need to put in your banking pin. This option usually allows you to ask for "Cash Back".

By using credit, you need to sign a slip of paper.

Some banks have a promotion...if you use the credit option, you're entered into a contest, yada yada

The only reason you have the credit option is so that vendors who won't accept ATM cards are able to accept your debit card. A regular ATM card is similar to a debit card, because it is linked to your bank account. However, the debit card can be used anywhere VISA/MasterCard, etc. are accepted, because those companies work with your bank so that they can make money off of the vendors. Vendors want to pay for this service so that more people will spend more money at their stores. ATM cards can only be used at ATMs.

Answer 6

Debit is like using the card as an ATM. The transaction is immediate. Credit still comes out of your cheacking(or savings) account but gets processed through the credit card company. You do NOT receive a bill from that company. Debit requires your PIN, Credit requires your signature. Vendors(stores) pay a fee for Credit transactions(typically 2% of the transaction amount) to the credit card company, with debit their typically isn't any fee. Credit transaction can offer buyer protections (if applicable), debit transactions generally offer no such protections. It's easier to balance your bank statements using debit transactions since you typically don't have to wait for the transaction to appear. There is typically a 2 or 3 day delay on the posting of credit transactions.

Answer 7

To correct some post.
Merchant are charged a fee for debit transaction as well as credit transaction.

In the U.S.
If your debit card has a Visa or MasterCard it can be run through as a credit card or as a debit/atm card. Both methods come out of your checking account.

A signature transaction (Credit button) cost the merchant more money. A pin transaction(Atm/debit button) cost the merchant less money but the banks receives less money and that is why some banks have pin transaction fees.

No, you will not get a bill.

Answer 8

Because most cards are set up as debit credit cards. The credit part comes straight out of your account just like a debit but the debit are the ones that they ask you if you want cash back. I know that at my work we run everything as credit even debit cards

Answer 9

You are asked debit or credit because you have the option of using the card either way. You can use debit and use your pin, or you can use credit and avoid the pin problem. It is just how it is taken out of your account. Both ways are debited from your checking account. No you will not get a bill from a credit company.

Answer 10

Because the card can be used either as a debit card or a credit card. Some stores will only accept a credit card. There is really no advantage to choosing debit versus credit, or vice versa, when both options are available to you.

Answer 11

the debit card is used for the money coming out of your checking account, where as the charge is being billed to you thru credit card companies. The best way in my opionion is have it billed to your credit card that way you don't have to pay for it for at least a month , depending on your billing cycle and if you pay the card off each month you can get peks back from credit card companies. if you have a problem paying the card off each month than better going with debit, but you'd better have money in your checking to cover the amount.