When using a Visa debit card is it better to use it as "credit" or use a pin number and hit "debit?"

Question

I'm wondering if there is better protection or lower fees with one or the other.

Answer 1

Unless your particular bank specifically charges the customer for purchases when you hit "credit", all of the extra fees are charged to the vendor - that is, the store you're buying from. So for your own personal interests, the fee structure for credit vs debit shouldn't matter.

So here's my answer: hit the "credit" button. Why? Because consumer protection laws are better at covering you when you define the purchase as credit, than when you define it as debit. Debit purchases are treated by the law as check purchases. I'm definitely paraphrasing here, but my understanding of federal law is that once you've written a check or signed off on a debit purchase (such as entering a PIN), it's really hard to get that money refunded if you have a dispute with the merchant. This could be any number of things, like they won't take something back that they said they would, or they get the amount wrong when they charge your card but are unwilling to credit you back because they can't prove, and you can't prove, that it should have been a different amount.

A credit card purchase, on the other hand, is different because of the way credit companies pay merchants that they've allowed to charge on your card. Because you're agreeing to pay the card issuer, and not the merchant directly like with debit, you can call your credit card company about the problem you're having with the merchant, and most card issuers will refund you immediately, and take up the arguement with the merchant on their own. Whereas if you call about a debit/checking inconsistency, the bank has already sent out your money and you're kinda SOL.

I could be wrong about this, because I'm not sure hitting credit protects you in the same way as using an actual credit card, but that's the reason I always hit credit when I'm asked.

Answer 2

It really makes no difference other than the fact that if you select credit it can take a little longer to be deducted from your checking account, as most debits deduct the next day. When someone asks me and I know I have the money..I just tell them either one...it's really doesn't matter much.

Answer 3

use it as credit, or the bank would normally charge a fee if you choose debit

Answer 4

either way it makes no difference

Answer 5

Doesn't matter on your end.  Fees are the same.  I think credit takes a little longer to hit your bank account, but that's it.

Answer 6

For you, practically no difference.

If it's lost cost or a consumable (eg, I don't need to take it back), I ask the merchant.  The fees are slightly different.  I can't remember when it gets cheaper for them to accept the debit.

Answer 7

It's probably BETTER to use it as a debit card.

Of course there ARE credit card fees; as a matter of fact, I read the other day that some "mom-and-pop" gas stations have stopped allowing the use of credit cards to pay for gasoline for that very reason - the fees eat into their profits.  The people who sell gasoline actually make very little profit (maybe 12 cents per gallon), and the credit card companies base their fees on the total sale, so, since gasoline costs so much now, the fees can run as high as 10 cents per gallon, leaving very little profit.  By the time gasoline hits the retailer, big oil has already gleaned all the profit, but that's another story.

On the other hand: Use it as a debit card, and I think that the bank takes some fees; although I am not sure of that, it makes sense to me that that would be the case, since banks also are very greedy when it comes to "fees".

Either way, though: If it works like mine does, the money is deducted from your account immediately, so at least YOU don't have to worry about a credit card bill.  And YOU will not be charged any fees either way - only the merchant.

Answer 8

I prefer the debit where you enter your pin. It just seems safer to me that way.

Answer 9

In the U.S.

The banks wants you to use it as credit.   However, only a few banks charge you for using is at as pin transaction.    However, there are some (Very few) merchants that charge a pin purchase fee.   If there is no fee,  I would leave the choice up to you.  However,  some merchants take only pin based cards and others take only signature based card.

Answer 10

Depends, mostly it is the same i.e. the bank wont charge you. However some banks/credit unions will charge you if you use it as a debit card at groccery stores and gas stations. Check with your bank. My credit union charges 50 cents per transaction so I never use it as a debit card. Most banks dont but check with your bank to be sure!