What is the difference of using debit vs credit when swiping my bank card?

I don't get what difference it is to use my bank card as a debit or credit. I've heard that banks charge a fee for credit. Is that true?|||Pretty much all these other answers are confusing or wrong.





Debit is actual cash limit. Basically this is how much you can take out at an ATM. It is taken out of your account that very day/moment. A pin number is required to use debit.





EX: Your debit limit is 500. You go to the store and buy 400 dollars worth of product and run it as a debit. You go to the ATM and try to get 200 dollars it is rejected. Because your debit or cash side has reached its limit.





Credit does not charge a fee. Generally the limit is higher on the credit side of the card. As debit it is taken from your account the same day. The difference is the credit stays pending for generally an extra day or two before hard posting to your account. Generally you will need to a signature to use credit side.





EX: You can buy that same 400 dollar purchase with credit and then get your 200 cash from the atm with debit. The credit purchase will then stay pending on your account for an extra day or two before posting. Credit can help to avoid overdraft fees. Lets say you bought something using credit and the banks business day is over before you realize your purchase made it negative. Since it was run on the credit side you can still put money in to avoid the fee since the transaction will not post till the later date.|||Most banks don't charge a fee for credit.


I think the biggest difference is the time it takes to get the transaction to your bank records.|||yeah some banks charge fees, but debit is a direct automatic withdrawl from your account while credit will pass and have to be pending for a while. with debit you can only use what you have because its instantaneous|||Debit: requires pin number


Credit : You may have to sign a receipt depending on amount and store policy





Debit takes the money from your checking account on the spot because you are giving authorization using your pin number.


Credit will charge your account and the transaction will be pending for about 3-4 days usually before it clears..|||There is usually no fee for you to use credit (the store usually pays a fee), and debit is treated as a foreign ATM withdrawal for which you are usually charged a fee.





Always choose credit if you have the option.|||Merchants get charged a percentage of the purchase price by the credit card company. Banks do not charge you.





A debit card is (usually) linked to a checking account, so you have to make sure you have enough money in that account to buy something.





A credit account is maintained by a separate company, and you can buy up to your credit limit without worrying about account balances. With a debit card, if you buy something and don't have enough in your account, you'll get charged an "overdraft fee" which is usually $35.





With credit cards, there is no overdraft fee, you only have your credit limit. It might be $500, or $1000, or even $20,000. It depends on what you've set with the bank. But you have to transfer money from your bank to your credit card to pay for the stuff.|||They both go through the credit card company (Visa, for example), but the difference is in who is charged the fee. If you go Wal-Mart and check out selecting DEBIT, Wal-Mart will charge a fee to YOUR bank. If you select CREDIT, the credit card company (like VISA) will be charged. That's the only difference. They both end up taking money from your bank account.