What is the difference between using debit or credit?

[i3myeyemakeup]

I know that. But when I use my DEBIT card, I can opt to use it at the store as a CREDIT card, but it still takes money right out. I am wondering if the only difference is one I use my pin the other I sign for.When you use a card, and it is actually a debit card, but at the store you opt to use it as a credit card, is the only difference you sign instead of using your pin#??Thank you bdancer, exactly want I wanted to know I have always just used it as credit, but I was just wondering why I had the option, and what the difference really was

[justoverhere]

credit requires that u pay installments over months when the bill comes, and debit is money already on the card that you use

[SoccerKic]

because a credit is charge and a debit card is money you have

[SSQ8]

Yes, the major difference is you sign rather than use your PIN. When the transaction is processed as a credit, it goes thru the merchant's credit card processor and may take a couple days to hit your bank account. There is a difference in the fees charged to the merchant but that has nothing to do with your side of the transaction.

[Ocean]

Essentially - to you - there is no difference if your financial institution doesn't fee you for your choice. Using a debit card as a debit transaction runs it through the ATM network and you need your PIN#. Using a debit card as a credit transaction runs it through the Visa or Mastercard network and you may or may not need to sign a receipt or pen pad. It costs merchants more to process the credit transaction; however, it costs your financial institution more to process the debit/ATM transaction, which is why some have charged fees for this in the past. ALL transactions on your debit card are debited from your account immediately.

[Melissa]

correct, the only difference is that you do not have to enter a pin for a credit charge, but the money will still be withdrawn from your bank account.

[kk]

In Accounting, there is an entire system of debits and credits to maintain bookkeeping. Debits are on the left side of a "T" account and credits are on the right. In this case, if you run your card as a credit, this creates a Liability to pay through the credit card company attached to the debit card, and takes a few days to clear. This is the method I recommend because it will automatically post to your account showing you your available funds but the bank still keeps the money in your account which allows you to earn more interest. For now this interest is next to nothing, however in the future with soaring inflation created by the Obama Administration as well as the fed, it will be a significant amount.

[dairyday]

This is how my card(s) are handled by my bank. There are advantages and disadvantages for each type of card.Debit card transactions are deducted directly from your checking account. The purchase is paid immediately from your checking account. 100% of the transaction amount is deducted from your checking account - no deferred payment plan.Credit card transactions are posted to a credit card account. The purchase is paid when you send in the payment. Payment for credit card transactions can be spread over several months.Banks make more money from the merchant on credit card transactions (higher processing fee). Has nothing to do with security. Rarely does a merchant request additional ID with a credit card. Debit card transactions (requiring a PIN) are more secure but the bank makes less money on processing fees.Some gas stations require a zip code for credit card transactions. Not very secure. Look in the phone book for the name on the card and you might guess the correct zip code.Most (maybe all) merchants are required to post a large deposit with the bank to cover fraudulent credit card charges. So, it you challenge a credit card purchase, the bank won't lose any money, the merchant does. I don't believe debit cards require the deposit from the merchant.Credit card charges are easier to challenge than debit card charges.Large "holds" for hotel, rental car and vacation expenses can lock up your checking account money if you use a debit card. Use a credit card for these transactions.If you don't have a credit card account, all purchases will be converted to debit transactions and charged to your checking account.

[dairyday]

on a debit card, u've already put in money, on a credit card, u don't have to.

[karan]

online Debit card means you are taking the money from the bank account and giving the money To access your account you must have your personal identification number (PIN), to access your account and offline debit card are such that The vendor machine reads your card, identifies it as a debit card and creates a debit against your bank account.With a credit card, you are taking out a loan wfrom a bank, and the bank gives that money to the vendor in a 2-3 days. you pay these money later to bank as per your term.