I just got my debit card in the mail the other day, and I was wondering what the difference was if I ran it as a credit instead of debit when buying stuff. I know when I run it a debit I have to put my pin# in, and for a credit I have to sign the reciet, but whats the real difference?
2007-01-19 07:29:31 · 12 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
That's the only difference. It all ultimately comes out of your bank account. Sometimes there is a charge if you use one method over the other, but I believe that is generally a thing of the past.
2007-01-19 07:33:21 · answer #1 · answered by theeconomicsguy 5 · 0⤊ 0⤋
In both cases, the money comes directly from your checking account, so there really isn't a huge difference.
A few minor differences:
- Some places don't take debit cards, you have to go credit.
- You can usually get cash back from a debit transaction, but not a credit transaction.
- Some cards (such as Paypal) charge more for one type vs. the other. When I use my Paypal card, I get smacked if I use it as an ATM instead of Credit.
- Debit transactions are more secure (due to PIN)
- You usually can't do debit transactions over the internet (you can't enter your PIN).
I don't like debit cards in general. Sure, you are limited in liability to $50.00, but if you have a complaint, the money is already gone and you fight to get it back. With a credit card, you don't pay until complaint resolved. I prefer to keep an visa/mastercard free ATM card.
2007-01-19 07:36:54 · answer #2 · answered by great_and_mighty_adam_levine 4 · 2⤊ 0⤋
The real difference is that credit transactions are more costly to the retailer. The fee they pay to Visa is higher than on a pin based transaction. This is why Sam's Club doesn't take Visa, but would allow pin based.
I don't believe it would have any noticable impact on you or your account. I personally don't like punching in my pin while standing with 50 people around me at the grocery store, so I choose credit whenever possible. I also found that selecting debit on a gas pump never worked for me to get cleared to buy gas.
2007-01-19 07:34:44 · answer #3 · answered by Anonymous · 2⤊ 0⤋
No difference except that you'll have to sign a receipt.
I run my debit card as a credit all the time when the stupid POS machines don't work. The money will be drawn out of your account the same way.
(Although I've noticed that "credit" transactions are slower.)
2007-01-19 07:33:46 · answer #4 · answered by Anonymous · 1⤊ 0⤋
I specificallly went to my bank and asked this same question..here is the answer i recieved: when you use your card as a "debit", you have to put in your pin and the funds are deducted immediately from your account which means you have no holds on purchase amount, but if you use your card as a "credit", the funds may/may not be deducted immediately therefore leaving a possibility of an overdraft. Your safter to use it as a debit all the time especially if you have your card set up to where if you are even 1 cent short of the amount it will decline your card, that way you can't overdraft.
2007-01-19 15:46:23 · answer #5 · answered by cocomax_00 2 · 0⤊ 1⤋
THE DIFFERENCE IS THAT A DEBIT TRANSACTION IS TAKEN OUT OF YOUR CHEKING ACCOUNT THAT SAME INSTANT AND WITH A CREDIT TRANS. IT TAKES A DAY OR TWO FOR IT TO GET TAKEN OUT OF YOUR CHECKING IN SOME CASES EVEN UP TO 3 TO 4 DAYS BUT ALSO ASK IF THERE IS A CHARGE ON ANY IF ANY WHEN YOU PLAN TO PAY WITH ANY WAY CREDIT OF DEBIT OTHER TIMES YOU MIGHT HAVE TO SPEND A CERTAIN LIMIT SO U CAN PAY WITH YOUR CARD OR GET MONEY BACK MOSTLY ON YOUR NEIGHBORHOOD LIQUOR STORE
2007-01-19 07:45:28 · answer #6 · answered by SHY 2 · 0⤊ 0⤋
if you credit vs. debit, you'll dodge the PIN based transaction fee. the money will still come out automatically but you'll save that 25 cents per transaction cost.
in short: do the transaction as a credit at all times.
2007-01-19 07:57:28 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Be careful! There is a big difference, a debit card means that you have to have money in your account to back it up and a credit card means that you don't, but even though you use your debit card as a credit you still have to have the money in your account to back it up so it really does not make a difference whether you use it as debit or credit you still need to have the money in your account when you use it.
2007-01-19 07:35:31 · answer #8 · answered by sheripie72 1 · 0⤊ 5⤋
Debit is your money Credit is the company's money you have to pay interest on. Be careful with what your doing.
2007-01-19 07:37:52 · answer #9 · answered by prizelady88 4 · 1⤊ 2⤋
debit is use the money from your bank ac, credit is use someone else then you can pay late
2007-01-19 07:45:08 · answer #10 · answered by wu n 3 · 0⤊ 1⤋