What is the difference between credit and debit?

Question

I have a debit card and stores will always ask me whether I want to use credit or debit. What is the difference between the two? Do you get charged for using one and not the other?

Answer 1

If it is run as debit then you enter your pin number and the money comes right out of your account. If it is run as credit, then it will take a couple of days to come out of your account. You do not get charged any interest or anything if you run it as credit.

Answer 2

debit is using the money straight out of your bank account as credit is spending money but its not coming straight out of your accout and you pay it at the end of the month.

Answer 3

A Credit (card) is a promise to pay for something you're buying.  More clearly, your credit card company (mastercard, visa, discover, etc.) is paying for what you're buying, and you pay your credit card company back.

A Debit (card) takes money directly out of your bank.  If you only have $100 in your bank account, then that's all you can use on that debit card, whereas a credit card can have a limit from $500 to $20,000!

A lot of debit cards have a credit symbol on it and can be used as a credit card, but doesn't work as one.  These are sometimes called "check cards".  I used to have one and basically, if you use it as a debit in some stores, they will charge a transaction fee, like many other debit cards.  It works like an ATM.  However, if I tell them to swipe it as a credit card, I don't get charged the fee.  What makes it different from from a regular credit card is that the money is taken out of the bank account.

Keep in mind, some places will not swipe a check card as a credit card, and will have to swipe it as debit, thus charging you a fee.  

Anyway, best thing to do is to ask your bank account about your card for more detailed information.  Rules and regulations on how you can use your card and whether you will be charged a fee is different with each bank institution.

Answer 4

Credit you pay at the end of the month. Debit takes the money right out of your bank account.

Answer 5

The only difference is the way the transaction is authorized. If you run it as credit then you sign for the purchase and if you run it as debit then you authorize it with your pin. The money still comes out of your checking. With "credit" the purchase may not immediatly reflect in the account. That could be a bad idea. If you use your card as credit and the funds are not pulled then you will have an inaccurate balance if you check online or at the atm. If you forget about it then you could end up paying alot of fees. I suggest using debit or the atm whenever possible. That will keep your balance in order and help keep you from getting fees. Hope this helps.

Answer 6

ALWAYS say credit.  That means they will PROCESS the transaction like a credit card and you will sign the receipt instead of entering your PIN number.  VISA and MASTERCARD both require banks to give the same fraud protection to 'signature based' transactions using debit cards as they do for credit cards.  You DO NOT have the same protection for 'PIN based' transactions.  The MERCHANT may pay different fees for one, but YOU will pay the same either way.

Edit: I see MOST answers did NOT read the details.  The question STATED the actual card is a debit card and asked about USE.  Many answer attempted to distinguish between a debit card and a credit card.

Answer 7

I ask this all time at the stores when they ask me debit or credit.  The answer I recieve is that if you choose debit you can get how ever much money you want back.  Say the total is $10 but I need a dollar or too for later.  Then they can ring it up as$12 dollars under debit and give you the few dollars back. Then for credit you don't get money back.  Hope this helps

Answer 8

credit is the amount you pay on each bill at the end of the month , also uses interest

debit is taken straight from your bank account which accumulates no interest  

Answer 9

As far as you are concerned, there is no difference.  The money will still be deducted from your account.  There are differences for the store.  The transaction fee is different and sometimes it is faster to put it through as a credit.

Answer 10

a Debit card = Laser, Or a card that has funds in it.

a Credit card, is something like Visa/mastercard... A pay later card.

Answer 11

credit is conpanys lending you money to spend while debit is your checking card that banks give you to use. for example say you have $100 in your bank acount. with a credit card you can spend as much as the credit card companies let you spend so you could spend $10,000 (you would have to pay them back of course). but with a debit card (or checking card) you would only be able to spend the $100 in your bank acount.

Answer 12

Debit is linked to a checking account and takes directly from your money. Credit is linked to a credit card company and takes money from the company, then the company bills you. Because a credit card machine is meant for credit, its default goes to bill a credit card company. Therefore, if you have a debit card and run it as debit, SOMETIMES, not always, but sometimes you will get an added charge to your purchase like an ATM will.

I always say credit when I use my debit card. Debit cards will run as credit even if they are not credit cards. I was informed by my bank to always use my debit card as a credit card to avoid possible added charges.

Answer 13

Difference is, for credit, u'll nid a minimum income of what is required to sign up and i guess u noe the rest what credit cards can do.... For debit, its the card similar to credit cards... but the diff is, for credit cards u dont nid money in the card to purchase or paying off something, its like a loan with interest and everything with discounts for certain places... But for debit, to sign up u'll just need to open an account just like other banks, no minimum income required and u'll only purchase only when u have money in it then u'll be able to purchase or buy something and still like credit cards discounts for certain places, and u can sign your bills too just like credit cards... Btw, Here's My Card!