Debit or Credit?

Question

Why is it when I purchase something with my debit card I can use it as a debit or credit? Isn't it the same thing? If not, what's the difference?

Answer 1

for you/to you YES it's the same thing...it comes out of your account no fees same process...the difference is one you use a pin for, the other you sign for. a new trend is earning points on debit run as credit due to the fact that the merchant has to pay visa a small fee when a "credit" is run...so visa kicks some of that revenue back to you the customer...but how it affects you account...it's pretty much the same thing

Answer 2

Not the same. Debit comes out faster & you can still use it as credit if you have the visa or mastercard logo. I like credit better, the bank has a rewards program that gives me a point for every dollar spent using the credit option.

Answer 3

Big difference.  Credit goes through the credit company that administers your card (usually Visa or Mastercard).  But, instead of sending you a monthly bill, they immediately transfer the money out of your checking account to pay for your purchase.  All purchases made via the credit feature of your card is protected by the credit company's program... most offer fraud protection on that purchase - the problem though, is since they automagically take the money from your checking account, usually, the fraud is detected after the money has already been paid - it is always harder to take money back, than to refuse payment for a fraudulent purchase.  And then you are eligible for the credit company's perks as well - reward points and the like.  For the store, everytime you swipe using credit, the store pays the credit company a usage fee.

Using your card as a debit card is just like using it in the ATM machine.  You tell it how much to withdraw, you enter your pin number, and the money is given to the store.  The transaction goes straight to the bank.  And because it is an ATM transaction, you can ask for cash back.  And just like your ATM transactions, if it was a fraudulent transaction, you're screwed.  It is very difficult to get that money back.

Answer 4

debit is a card that contain the money you have,

credit - the card with the money you are borrowing from a bank and have a month to return them otherwise they charge you high interest on the money you have used. If you can avoid credit---this is great

Answer 5

Debit=Money goes from Your own savings

Credit=Money goes from credit card company bank...its a loan sort of thing,which you can/have to pay back from your savings at a later point(40-50) days.

Advantage-You can earn points and redeem for a gift.

You can roll the money from credit card for some time till your next month salary comes....incase you have exhausted your current month pay.

Wish you Happy spending!!