Sunday, December 4, 2011

Whats the difference between credit and debit?

When I use my bank card to purchase something I'm asked credit or debit. Sometimes I say credit, and other times I say debit. What exactly is the difference? |||Actually, I asked that same question not too long ago.





http://answers.yahoo.com/question/index;鈥?/a>





That is my question, and my answers. =) It was helpful, since I called up Bank of America to confirm the next day and they told me exactly what the person I gave Best Answer to had said previously.|||Debt- comes out straight of your account





Credit-Pending, and it improves your credit score through time....








|||Debit is what you have in your account, money you have put there. Credit is money you can use before you have your own earned money.





Credit - you have 5$ of debit and want a 10$ item, you buy it on credit and pay later.





Debit - Takes funds strait from your deposited money rations.|||I would say credit, sometimes stores will charge you extra if its debit. You probably have a credit/debit card! they are amazing! better than a credit card because you dont have to pay a month later they just take it right out of your account. |||Credit is charged to be paid at a later date.


Debit is taken directly out of your bank account.





When asked, you should say credit most likely.|||Debit is taking away from funds you already have.


Credit is giving you credit for funds you don't have or aren't using to be paid at a later time, possibly with interest.|||Credit- When you dont have to have the money to buy something of a plastic rectangle(but have to pay it off later)





Debit- When you have to have the money in your bank to buy something with small plastic rectangle.|||debit comes from your bank account credit is something you will o in till you py it off|||It's a credit card and a debit card.


A credit card is kind of like a mini-loan from the bank.


A debit card is just a way to transfer money from bank-store without material cash.





However,


In the accounting world, a credit is considered something you are receiving. The bank pays interest to you in a savings account, that's considered a credit to your account.





If you go to the store and buy a slurpee, your taking money away. Thats considered a debit from your account. |||if it's a debit card ur using then it doesn't really matter, either or will come out of ur checking account, the only difference is u sign for one, and enter ur pin for the other. however some people have credit lines through their bank that doesn't withdrawl from their checking account, if u haven't gone through the approval process for a credit line then u only have debit. i used to bank with a credit union and they preferred i signed for everything rather than entered my pin. |||Your bank card is an ATM/Check Card with either a Visa or MasterCard logo on it.





Both types of transaction are paid thru your checking account.


Debit - you enter your PIN number and the charge is immediately deducted from your checking account.





Credit - You sign the receipt and the charge can take a couple of days to be deducted from your checking account.





Using the "credit" feature on your check card does not built credit it does allow you to use your check card as if it was a credit card and you can buy things online with it where it is safer to use the credit part of your card instead of your debit where you would have to enter your PIN.





Most banks offer perks for using Credit and signing the receipt... not that they care how you do the transaction but because they can charge a merchant a higher fee for the "credit" transaction. The terminal does not differentiate between real credit cards and check cards and charges the same fee to the merchant where in comparison a debit transaction doesn't cost a merchant as much...|||here's the deal. when you are using a debit / bank card tied to your checking account, the credit or debit question is a matter of how the transaction is cleared through the merchant payment systems.





if you have a visa / mc on your card, it will be cleared through them. if you use debit, it will be run through another merchant system, like an atm payment.





why do you care? you don't really - the merchant does as they pay a much lower fee with debit.





of course, don't choose debit at all if there s any chance your pin could be compromised (cameras or a shady merchant) and don't use a bank card at all if there will be an advance lock on funds (prepaid gas or car rental etc)

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