You know that moment when you’re at check out and they ask “Debit or Credit”?
It can happen if your debit card has a Visa or MasterCard logo on it.
There’s actually quite a difference between processing it as a debit or a credit, and choosing the right one could save you some money.
So imagine, underneath the cash register, there are two sets of pipes.
One pipe goes straight to your account, and brings the money right back.
That’s how debit works. The cash comes out of your account instantly. You could go online right then and check it.
But because the money comes out right away, What if there’s something wrong with your purchase… and you need to cancel it? They’ve already got your money.
That’s why choosing credit is often the better choice. When you select credit, the transaction goes through a whole different set of pipes, and gets protections along the way. Fraud protection, and easier refunds.
Plus, when you chooses credit, you sign for the purchase instead of punching in a PIN and that’s safer. All it takes is someone behind you in line with their smart phone to record your card number and PIN and they’re off to the races.
The protection that comes from choosing credit costs you nothing. It does cost the merchant a bit more, so if you’re shopping at your Uncle Sal’s butcher shop, he might give you a look.
One drawback to choosing credit is—you won’t see the money come out of your account until the retailer bundles up their credit card charges and submits them. It could be later in the day or the next day. And if you need cash back... you’ll need to choose debit.
Otherwise, sign for your purchases and enjoy a little extra peace of mind.
Do us a favor please. Tell your friends about us so they can be smart about their money too.