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DEBIT OR CREDIT?
...What
You Need To Know To Protect
Yourself.
When
using your Debit card have you ever
been confused in which option you
should use either the “DEBIT” or
“CREDIT” option after swiping your
debit card at the point of sale
machine?
There
are important differences between
“credit” and “debit” such as
merchant fees, legal protections,
dispute assistance, and even your
available Checking account balance.
DEBIT
CARDS
When you
use your debit card, you have the
option to pay by “debit” or
“credit”. Both transaction types
are authorized, contain fraud
protections, withdraw funds from
your checking account, and can be
tracked using online banking or
reviewing your monthly statement.
However, even when you are using
your Debit card, the smart answer is
usually to use it as a “Credit”
entry.
Choose pen over PIN (personal
identification number), and your
debit card will almost always work
harder for you. When you use your
Debit card at the checkout and
select “credit” you will likely be
asked to sign a receipt to prove
your identity rather than a entering
a PIN. Credit transactions usually
clear your checking account within
two to three days. However the
funds are placed on hold
immediately. By choosing the
“credit” option you avoid merchant
transaction fees, gain liability
protection and assistance from your
card issuer with merchant disputes.
The
Pen fights fraud. While there
are different advantages with using
a credit or debit card, you have the
maximum advantage when you choose
“credit” regardless of which card
you are using. By Choosing “credit”
and signing for your purchases, you
have protections that are not
available with PIN transactions.
So
Why Use a PIN at All? One Reason:
You want cash back. Save your
PIN for ATM use and choose “credit”
when you are making a purchase at
the mall, gas station or grocery
store.
Which
card is safer? The savvy answer is
to SWIPE your debit card, and select
“credit”. You will find the pen is
mightier than the PIN and it will
help to ensure your card and
identity remains safe.
We
look forward to serving all your
financial needs here at Weyco
Credit Union.
*Please
note this is not legal advice
and the credit union is not
presenting this data as legal
advice but as credit counseling.
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