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: What are credit card grace periods? – If you pay your credit card balance in full and on time each month, interest does not start charging immediately on new purchases. This is called a grace period. Let’s see why grace periods are so awesome ...
- Video: Four times to open a new card – Getting bogged down with card offers but not sure about adding more plastic to your wallet? Here are four times we think you should definitely take the plunge ...
- Video: Hidden credit card perks – You know about the bonus, you know about points -- but your card may offer other perks if you know what they are and use them when you need to ...