Video: Debit cards - PIN vs. signature at checkout
When you swipe or insert a debit card, you get the option debit or credit. What’s the difference?
It’s in how the transaction gets processed.
When you choose debit, you enter a pin and the amount is deducted from your account almost immediately – like an ATM withdrawal. When you choose credit, you usually have to sign a receipt or screen. And since it goes through the credit card processing network, it can take a day or two for it to show up on your account. And don’t worry – even though the prompt may say “credit,” you won’t pay any interest. The money still comes from your checking account.
You may want to choose credit if you’re traveling or shopping online and want better fraud protection or if you have a rewards program through your checking account that requires the credit option.
You’ll want to choose debit if you plan to ask for cash back from the merchant, or if you want to save the merchant money, since credit card transaction fees are higher on credit than on debit.
So, next time you’re asked whether you want to use debit or credit with your debit card, you can make the decision with confidence.
- Video: Holiday credit card perks – As you splurge on holiday gifts for friends and family, be sure to take advantage of the extra credit cards perks available during the holiday season ...
- Video: Planning for a baby with the right card – Babies bring love, joy - and bills. Strategize early how you’ll pay those bills to make the transition easier and help you bank some much-needed credit card rewards in the process ...
- Video: Black Friday survival guide – Black Friday means deep discounts, large crowds, and hectic environments. Use these tips to help you survive the madness. ...