Report Abuse
|||In the U.S. most stores do not charge a fee for using your card either way. My experience is the money is authorized immediately but hard posted in about 3 days. No matter how the transaction is done.
Report Abuse
|||Debit takes the money from the funds already existing in your bank account the other, credit, loans you the money up to your agreed limit (regardless what is in your bank account) until you pay it back or the minimum payable amount each month.|||credit you sign debit you put in your pin number.
same crap different commode|||It's the type of processing. If you say Debit, you'll have to enter your PIN number. If you say Credit you just have to sign for it.|||they ask because they have too, tell them credit every time. if you use it as a debit you get charged a fee. if you say credit they don't charge you.(that's how mine works at least, i would ask a bank teller next time you are at your bank)|||Debit,the money comes out of your bank account,Credit,the money is paid by the credit card service,which you can pay at a later date and is subject to the card services company charging interest !|||A check card is just like writing a check. Using it as a debit means you have to use your pin number and you have the option of getting cash back. Using it as a credit means you don't have to key in your pin number...just sign your name like a credit card. The money stills comes out of your checking the same...either way.|||Two wrong Answers. Technically with a check card all transaction are Debit ( immediate withdraw) The difference in this case is the processing. Debit year enter a PIN credit you sign.|||A debit or "check card" which you have withdraws the funds directly from you checking account at the moment of transaction. A "credit card" is kinda like you telling "uncle visa" I owe you until the end of the month when the total comes due and you have to send them the amount you borrowed all month.
When the stores ask you debit or credit you actually have a debit card although your bank calls it a "check card". If you want a credit card you will have to apply for one and depending on your credit score you will be qualified for different amounts you can borrow.|||credit means your money OK by your credit history or can offers of credit available to you in your credit card. Debit is your Owen money you put it in the bank.|||About a year or two ago, I received a letter and a brand new ATM card from my bank. The letter bragged about the new and improved card that could now act as a debit card. So I exchanged the old card for the new one and tore up the letter before throwing it in the trash. Ever since, I have utilized the new card for--(tada!)--ATM transactions. To be honest, I didn't give the debit option a second thought.
I suspect that there are many people like me who know they have an option to use a debit card, but don't take advantage of it because they have a lack of knowledge or interest, or simply are in the habit of writing checks. While checks, ATM cards, and credit cards are fairly self-explanatory, many people fail to see much difference between a credit card and a debit card. So the questions are, is there a significant difference, and is one better than the other?
What's the Difference?
Credit. Every time you use a credit card, you are actually borrowing money that is made available to you by a bank or other financial institution. The institution pays the debt to the vendor, and in turn, you pay the money back to the institution. By signing up for a credit card, you agree to pay back the money that you borrowed, in addition to any interest drawn on the amount you borrowed.
Debit. Odds are, you have a debit card in your wallet or purse right now, since many ATM cards are programmed to have debit options. Issued by your bank, debit cards take funds directly from the money that you have in your bank account--in a sense acting like a check, just faster. With a debit card, you don't have to carry cash or checks, and it is very convenient to shop at a variety of places including gas stations, grocery stores, restaurants, and retail stores. They provide instant access to your money and are accepted worldwide.
Debit cards are used like credit cards, meaning that the store you are shopping at 'swipes' them, and then you sign off on the receipt. You don't have to show a picture ID, and there is usually no PIN number for you to punch in.
Which is Better?
Maybe you still don't see much of a difference, besides where the money comes from and when you have to pay up. So which one is better to use? It depends upon how careful you are with your card and what you are using the card for.
The features that make debit cards convenient--instant access to your money, lack of a PIN number, and not having to drag out your photo ID when you use it--make fraud that much easier. Unless reported quickly, theft of your debit card can quickly devastate your bank account. This is where you begin to see a difference between credit and debit cards. Here's why:
Credit card companies are held to strict liability laws; the law limits consumer liability for credit card fraud to $50. For example if you notice suspicious charges on your credit card statement such as double billing or an incorrect charge, the credit card company is obligated to investigate if you send in a written request within 60 days.
For debit card fraud, your liability is $50 if you notify the bank within two days of noticing the fraudulent charges. After two days, your liability increases to $500, and up to your entire account balance after 60 days. So if you notice that your card is missing within two days and report it, you can only be made to pay up to $50. However if you report the theft after two days, you can be held responsible for paying for purchases or charges that you didn't make. Although many banks have started to implement voluntary plans to limit customer's liability to $50, there is no federal law regarding this issue.
The key to protecting yourself when you suspect that your stuff has been stolen is acting fast! The Federal Trade Commission offers an excellent resource that can help you respond quickly in case your wallet or purse is stolen.
In addition to stricter liability laws, credit cards also offer more consumer protection on purchases made. Use credit cards for very large or fragile purchases, and for objects that will be delivered to your home after the purchase; this gives you added insurance in case the purchase is damaged in route.
One final advantage of credit cards is that they are a great tool for consumers that are seeking to establish or reestablish an attractive credit history. Responsible credit card usage can improve one's credit rating Credit cards typically report account activity to at least one of the three major credit bureaus on a monthly basis. An attractive credit rating will improve your chances of obtaining favorable credit terms (low interest rates, low fees, etc.). for automobile loans, mortgages, personal loans, etc.
Discipline Yourself
One pitfall that many consumers fall into is not keeping up with their debit transactions. This is like writing checks and not recording your purchases--you may end up trying to spend money that you don't have! If you're not good at recording your check transactions, you will need to discipline yourself to keep up with your transaction receipts.
Probably the main thing to remember if you are using a debit card regularly is that it's not just a card; it's ready access to your money. Be as careful with it as you would with your wallet if it had the contents of your entire bank account in it. The National Consumers League is a good resource if you would like even more information on debit cards. It offers information and tips for responsible use of debit cards, including record keeping and theft report.
Now that I have learned all about debit, maybe I'll break my habit and dare to use my debit card now. But I'll probably take my checkbook just in case!
--------------------------------------鈥?br>
Courtesy of www.CardRatings.org. CardRatings.org features an independent, free consumer credit card ratings report which compares credit card interest rates, fees, benefits, rewards, rebates, annual fees, etc! The report is compiled by the consumer credit organization Citizens for Fair Credit Card Terms (CFCCT). CFCCT is entirely devoted to credit card research.|||In the US here is how are checks/debit card work.
If you select credit. You sign for your purchase some places you don't even sign if it is under a certain amount.
If you select ATM/debit. You would enter your pin. Some banks and some merchants may charge you for using your card this way. Bank fees will not be on the receipt.
Both methods come out of your checking account.
My bank does pre-authorization memo hold then when the charge comes through it is hard posted. Pin purchases will get hard posted faster.
No comments:
Post a Comment