Debit cards

[sweeps]

I'm not sure which is worse, someone getting a hold of your signature (which they could get on any document you've ever signed), or someone watching you enter your PIN at the checkout.

[Gruntina]

Its verly likely someone can get ahold of your signature (very easy to do). I think there is a greater chance of than than somone catching the pin code. I am not saying the PIN does not happen since they do.

[gavinmccallister]

I have heard that when a retailer processess a card as a debit card the bank pays the processing fees, and when it is run as a credit the retailer pays the processing fee. and I have heard some banks are including the fee for processing the debit onto the customers statement. so you should verify with your bank and make sure they aren't charging you a fee.

I have seen alot of retailers pushing the debit function to save the processing cost

[Gruntina]

Originally Posted by gavinmccallister

I have heard that when a retailer processess a card as a debit card the bank pays the processing fees, and when it is run as a credit the retailer pays the processing fee. and I have heard some banks are including the fee for processing the debit onto the customers statement. so you should verify with your bank and make sure they aren't charging you a fee.

I have seen alot of retailers pushing the debit function to save the processing cost

Wendy's in my area consider Debit charge to be an "ATM" function even though it’s at the cashier register. They put additional charge on the debit card as a service fee. I think any aspects needs to be watched out for and use your best judgment on whether using Debit or Credit for each purchase.

[JoyJoy]

Originally Posted by Sweepsplayer

I'm not sure which is worse, someone getting a hold of your signature (which they could get on any document you've ever signed), or someone watching you enter your PIN at the checkout.

Decisions, decisions, decisions!!! Makes one just want to use cash only and forget the cards!!

[tabbycat31]

I refuse to use my debit card. Fraud on the account had me spending hours on the phone with the bank clearing it up. I only use it at ATMs. I pay cash for most and put gas on a CC

[lrjohnson]

Originally Posted by vsjhoc

I think they are not asking you if you "want" debit or credit. The store is asking you whether you have a debit card or a credit card, because they process them differently. I don't think the same card can function as either a debit or a credit card. (But I could be wrong. Happens all the time. ) So it depends on what's in your wallet.

I use the same physical card as both debit and credit. As debit hits it hits immediately, and credit doesn't always. I can then enter my PIN or sign.

I am exceedingly debt averse, which is why I mostly use debit. I'll probably switch, I know there are very good reasons, but I really hate owing. I did have my debit "swiped"/stolen (they stole magnetic info somehow), and it was sort of a hassle, but as I've posted elsewhere I adore my credit union, they made it so easy to deal with and reversed any fees on the "overdrafts" (transfers from savings).

Originally Posted by Gruntina

(This is why I always write "Please see ID" on all of my cards so it can not be copied).

Remember to also sign. To be technical the card does have to be signed, and I worked at a business (national chain) that followed that; "see id" by itself and we couldn't take the card, "see id" after or before signature and we'd take the card and check id. People would get upset, but we had to explain we were enforcing the credit card rules, not our rules. My one credit card on the back does say "not valid unless signed" twice, in large and small print.

[safari]

I found this article that explains the difference between debit and credit http://hffo.cuna.org/12433/article/1171/html

Originally Posted by lrjohnson

Remember to also sign. To be technical the card does have to be signed, and I worked at a business (national chain) that followed that; "see id" by itself and we couldn't take the card, "see id" after or before signature and we'd take the card and check id. People would get upset, but we had to explain we were enforcing the credit card rules, not our rules. My one credit card on the back does say "not valid unless signed" twice, in large and small print.

I spent many a year working retail and had that argument several times trying to help a person understand that if you don't sign the card and it gets stolen, the thief can sign it and it will then match their signature when used!

Somehow they were convinced signing their card somehow put them at risk.

It's all pretty much a moot point now as in most situations, your signature isn't seen (you sign a PIN pad) or even needed in the case of sub - $25 transactions.

[Ima saver]

Well, the way I read the article, debit cards are not a good thing. You have much more protection if you use a credit card. I am like one of the other posters, I prefer to use cash or write a check.

[disneysteve]

Originally Posted by Ima saver

Well, the way I read the article, debit cards are not a good thing. You have much more protection if you use a credit card. I am like one of the other posters, I prefer to use cash or write a check.

I agree that debit cards aren't nearly as good as credit cards. I never use a debit card. We use our credit cards for everything we possibly can and rack up hundreds of dollars a year in rewards.

[poundwise]

Here is an article that is not anti-debit card yet still points out the added risk and other factors:

http://www.usatoday.com/money/perfi/...it-cards_x.htm

[Elgin526]

Originally Posted by Ima saver

Well, the way I read the article, debit cards are not a good thing. You have much more protection if you use a credit card. I am like one of the other posters, I prefer to use cash or write a check.

Don't think you are safe writing checks, a theif can steal your identity from info on you check! Your name, name of your bank, address, account number, bank routing number and your signature are all on it! That's why I never mail checks from my home mail box, anyone can steal my outgoing mail (and this HAS happened to people). I put it in a USPS corner box in my neighborhood instead. And I never write a check at a store for the same reason, if I want to pay "cash" I use my debit card (with a Master Card logo) or I use my rewards credit card.

I'm not saying you should run out and get a debit card, of course! I just want to make you aware that writing checks can still put your money and identity at risk if the wrong person gets a hold of one.

[vsjhoc]

Originally Posted by lrjohnson

I use the same physical card as both debit and credit. As debit hits it hits immediately, and credit doesn't always. I can then enter my PIN or sign.

OK, let me know if I've got this right (I'm a little slow sometimes): You have a checking account and you have a credit card account. You have one actual card for both. When you use it as a debit card, it deducts the money from your checking account. When you use it as a charge card, it posts to your credit card account. Are you always asked (by the clerk or the machine) whether it is a credit or debit transaction? What happens (how is it processed) when they don't ask?

I have only a debit card. Most times I input the pin, but sometimes I am asked to sign. By signing, I am not turning it into a credit transaction. So how is the distinction made when you use your dual-purpose card?

It is so rare now for merchants to even look to see if your card is signed, never mind compare your signature to another ID. I've got "check ID" written on the back, but that's seldom done as well.

[Broken Arrow]

Well, I have a Visa check card. It can be used either as a debit or credit. Both are tied only to my checking account. When I make a debit, it's charged immediately. As in *poof* right now.

In the event that they can't take debit for some reason (almost unheard of nowdays unless the merchant's machines go down), I can also charge it as a credit. For that, it goes through Visa's credit processing... process. Whatever that is. From the end user point of view, it won't post as quickly. It's also is NOT reported to a credit bureau (or so I am told).

So, whatever technology is involved in using debit is apparently more complicated than using it as a credit. Remember those paper and carbon copy slips that they run through with your credit card? Yeah, for the merchant, charging credit can be fairly low tech if need be; something that just isn't possible with debit when the all-powerful Wizard of financial OZ is out on vacation....

[poundwise]

There is some mix-up in terminology.

A debit card issued by your bank that is tied to your checking account is a DEBIT card, PERIOD.

If you perform a PIN-based transaction (sometimes called ATM or debit transaction) then the money is DEBITED from your checking account.

If you perform a signature-based transaction (running your debit card as a credit, which is possible due to the connectivity to VISA/MC) then the money is still DEBITED from your checking account.

The card is a debit card either way. It is your choice (most of the time) whether to run it in such a way as to require a PIN or a signature. Some merchants have started preferring that you use a PIN. This saves them some money in fees for processing the payment. If your bank offers a debit card rewards program, they will likely only credit rewards/points for transactions requiring a signature.

If you have a plain ATM card (a bank issued card tied to your bank account that enables you to access your money using a PIN but that does not have a VISA or MC logo) then you, in fact, have a debit card. You can withdraw money from ATM machines and perform purchase transactions using your PIN.

In this sense then, what is commonly called a debit card is really a hybrid. It has the features of a ATM/debit card combined with the ability to be used as a credit card would be used, only with money still being debited from your bank account.

Thus, it may be properly broken down this way:

1) A plain card (no VISA/MC logo) issued by the bank (as discussed above) is an ATM/debit card

2) A card issued by the bank with a VISA/MC logo is a "Visa Debit Card" or "Visa Check Card" -- it has the features of the ATM/debit plus the ability to be used as a credit card for transactions

It should be noted that most credit cards can also be used as ATM/debit cards to attain cash advances, etc. But, let's not add to the confusion.

[poundwise]

There is/has been some mix-up in terminology.

A debit card issued by your bank that is tied to your checking account is a DEBIT card, PERIOD.

If you perform a PIN-based transaction (sometimes called ATM or debit transaction) then the money is DEBITED from your checking account.

If you perform a signature-based transaction (running your debit card as a credit, which is possible due to the connectivity to VISA/MC) then the money is still DEBITED from your checking account.

The card is a debit card either way. It is your choice (most of the time) whether to run it in such a way as to require a PIN or a signature. Some merchants have started preferring that you use a PIN. This saves them some money in fees for processing the payment. If your bank offers a debit card rewards program, they will likely only credit rewards/points for transactions requiring a signature.

If you have a plain ATM card (a bank issued card tied to your bank account that enables you to access your money using a PIN but that does not have a VISA or MC logo) then you, in fact, still have a debit card; just not a 'Visa Debit Card' or otherwise one with the ability to perform credit card type transactions. You can withdraw money from ATM machines and perform purchase transactions using your PIN.

In this sense then, what is commonly called a debit card is really a hybrid. It has the features of a ATM/debit card combined with the ability to be used as a credit card for transactions, only with money still being debited from your bank account.

[vsjhoc]

So despite other posts to the contrary, I had it right the first time, yes? When you are asked "debit or credit?":

1. You answer based on whether you are presenting a debit card for immediate withdrawal, or a credit card to charge your purchase; OR

2. You answer based on how you are directing them to process your debit card, either for immediate withdrawal or not-quite-so-immediate withdrawal from your linked checking account.

Please tell me I've got it right and I'll shut up and get back to work ...

[poundwise]

Exactly.

When you are asked, "Debit or credit," ff you are using a credit card, you respond 'credit' - obviously.

If you are using a debit card, the question, as you view it, isn't so much, "Are you using a debit card or a credit card?" but rather, "Do you want to perform this transaction with a PIN (debit) or through VISA (credit)?"

[Broken Arrow]

Yeah, I hope I didn't complicate things if I seemed like I implied that some kind of credit is involved. With a debit card, only the process of transaction differs, but no credit of any kind is involved.