When one uses a debit (or check) card, what does it mean to use "credit" instead of "debit"?

Question

Thank you in advance. :)

Answer 1

in some situations, that money may not come out of your account at once. also, some business charge a transaction fee for using your ATM and when u use credit option you are not charged that fee, big reason when buying lunch or snacks in the mall. it adds up

Answer 2

Debit- Must use your PIN number

Credit- Must sign

either way it comes out of your account the same way. The speed just depends on when the merchant batches their transactions for the day.

The merchant is charged either way, regardless of how you run your transaction.

Answer 3

When you use debit you have to use your PIN number and the transaction is processed through your bank. When you run your card as credit you must sign for your purchase and it is processed through a credit service and then your bank. Also when you run something as credit the retailer has to pay a small fee for the transaction as well, but they do not when you use debit. I hope that this helps you some.

Answer 4

Debit cards are NOT credit cards.  When you use any terminal with a "debit" card it recognizes this.  Some terminals will ask credit or debit because they do not have a direct access to your banking information to complete the transfer.  You will see of lot of this at your smaller stores.

Beware of using debit cards at gasoline stations, many will hold the transaction for a period of time before they process it through your bank.  This saves them money on fees, but can mess your checking account up by over drafting your account if you do not deduct the charge in your check book register.

The terminals that can quickly access your banking information will know if there are enough funds in your checking account to cover the charge.  If you have enough funds, then it will be approved, if not, it will be denied.

Some bank debit cards allow for overdraft protection and will approve the transaction but they will deduct it from your saving account or charge account.

Hope this answers your question