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.