Whenever you use your debit card, they'll sometimes say "Debit or Credit"?

Usually I say Debit so that I don't have to sign anything and can just punch my PIN in and I'm on my way.

But, from the bank's standpoint... what's the difference? Like does one post to your account quicker than the other?

One retailer tole me they don't have to pay a fee or as high a fee to Visa when you use it as a debit card.

credit costs the vendor (store) money each time it is used, debit does not cost as much, it may even be "free".

[This message has been edited by aggiemike02 (edited 2/3/2005 11:10a).]

i also always choose credit when given the option. i'd rather sign a piece of paper than punch my numbers into some company's computer

check your statement, if you say debit i was charged a $1 per transaction. credit i was not

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check your statement, if you say debit i was charged a $1 per transaction. credit i was not

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Uh are you sure about that...

-Nick-

On our acct, the debit goes through immediately, whereas the credit takes a day to post.

But I have had stores say they prefer debit due to cheaper fee.

hth

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check your statement, if you say debit i was charged a $1 per transaction. credit i was not

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That happened to me too. I checked my statement and had $1 fees that coincided(sp?) with my debit pos purchases. So I do credit now.

Well your bank sucks then. I've never paid any kind of fee to my bank or other banks, not even an ATM fee, that's what cash back was invented for. I usually just do debit.

Seriously--you have a really bad bank.. that seems crazy to charge everytime debit is used...

i get a small % back when i use my debit card as a credit card. but by default the will ask for your pin bc they know it is a debit card ... so i hit cancel and use as a credit. they store does not have to pay for you to use your debit but they do if it is credit-

I try and use debit when shopping at a small business, or I ask them at least, which is cheaper for them and the answer is usually debit.

debit cards are the best.

Debit is usually a flat fee to the business. Credit is a percentage of the sale.

My bank pays me cash back on credit, so that's what I use.

Its my experience that the debit transaction goes through immediately. I can stop at 7-11 and get a drink on the way to work, and it will be posted to my account 5 min later when i log on at work.

Credit won't get processed until that particular retailer "closes out" their credit card machine. Ususally this is done daily, but it won't post on your acct till the next day.

Also look into your bank's card options. The little lady has airline miles on hers if she uses it as credit. So hers is always a credit when they ask.

On average, merchants pay about 2.5% of the transaction amount in fees when it's processed as a credit card. If it's processed as a debit card, they pay, on average, about 40 cents per transaction, regardless of the dollar amount of the purchase.... so, it's definitely to the advantage of the merhant to process as a debit card..... From the consumer standpoint, there's not much difference.... it will be taken from your bank in the same amount of time no matter how it's processed.... it's easier to dispute charges when it's processed as a credit card vs. a debit card though....

I usually use debit so that it will clear my bank faster and I can check it off on my ledger.

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Well your bank sucks then

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I use Wells Fargo. They also charge you an ATM fee of $2 if you use someone elses ATM. I had that problem when I was in Florida on business. There wasnt an ATM around for like 50 miles.

On the cost per transaction issue, it depends on the company's contract with the merchant card company. It is anywhere between 2% to 4%, depending on volume.

(on a side note) Other than bad-credit reasons, why are you guys not using credit cards to purchase everything you buy (that accept cards)? With cards like Discover, you can get 10% BACK on gas! That means my gas costs 18 cents per gallon less than everyone else's because I put it on credit and pay it off each month. Citi gives out 6% on gas and grocries as well as 2% on everything els you buy... in CASH.

It takes a little discipline, but getting paid $50 a month to put all my bills and expenses on a card ain't too shabby. Don't carry a balance and the money is free for the taking.

ExPLK - I use wells fargo, too, but I have never been charged a $1 if i run my card as debit. Maybe it depends on store you are at?? dunno..

opie03 - i have been looking into getting a card with cash back bonuses or airline miles. Do you think discover is best or is it just best for gas? Any others you would look at?

Wells Fargo sucks, I stopped using them a long time ago. I use City Bank now, get a % back if I use my debit card 8 times per statement, and I get free ATM anywhere.

I use Discover for all my gas. It gives you 5% back in cash or 10% back if you get gift certificates to certain vendors.

The rest goes to Citi. I got bumped up to 6% (cash) on Gro's and 2% (cash) back on everything else. No monthly fees on either of them.

I can recall getting at least $450 worth of stuff in the past 10 months doing this.

www.cardweb.com

USAA pays us a percentage each month to use our debit/credit card and ATM charges are reimbursed up to $15 each month. It seems logical that banks have less clerical work with a debit/credit situation than with a check clearance. But, of course, logic sometimes doesn't enter into charging a fee just for the sake of charging one. I saw an episode of PBS' Frontline this week on the hidden story of credit cards and how they figure all their charges and fees. It was pretty scary!