gamer_buddy
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debit means you can only spend as much as the actual amount you have in the bank..
credit means you can use the card and pay it in rates over a certain period of time..that means you can go above your means which is why so many people are in debt now-a-days |
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~Brought to you by popularity!~
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It is a debit/check card with a Visa or MC logo on it so you can use it like a credit card. Just comes directly out of your checking. Most places won't take ATM or checks so the banks have made it easier. |
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William E
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When you use your card as a debit card, you enter your pin number and the money is debited from your checking account. Neither you, nor the retailer where you use your card as a debit card, are charged anything by Visa/MC for that transaction.
When you use your card as a credit card, you sign your name on the receipt and Visa/MC charges the retailer a transaction fee. So basically, the banks have figured out a method of collecting a transaction fee from the retailer, without taking the risk of issuing the consumer a full fledged credit card. The money is still debited from your checking account and YOU are not charged any fees. If you do not have enough money in your account to cover the amount of the transaction, it is exactly like you wrote a hot check, expect insufficient funds fees and you can be prosecuted. |
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Bob
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Either way, the money is deducted straight from your bank account. It is only a difference in the way the store processes the transaction. As far as you are concerned, on that card, both types of purchase are the same. |
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mkaylad99
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A debit card can be used same as a credit card as long as they are funds there. That is the purpose of the Visa logo on it. |
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DffrncMkr
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it's not a credit transaction, it just clears differently. A debit comes right out of your account and a credit transaction passes through teh card issuer (visa, mc, amex) first. Still the same outcome for you. Some places aren't equipped to take debit so you use it as credit there.
One other difference is you can usually get cash back for debit, depending on the merchant. You can't with credit. |
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~♥Ladie M♥~
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You can use it both ways. Debit is when you enter your pin and usually you get charged a fee. You don't need to show I.D. because your pin is your I.D. The funds come out of your bank account right away. Credit is for making purchases online or wherever a credit card is accepted. It is free of charge, but instead of entering your pin, you sign a receipt and usually have to show I.D. (except online). It usually takes a couple of days to come out of your account. Hope this helps! |
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Caligirl
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it has the credit card logo but its still coming out of your checking account because it is a debit card.dont go crazy thinking your charging credit and that you can pay it back because you'll drain your account due to the fact that it comes directly from checking. |
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Legend in your own mind!
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Finally someone down at the bottom got it right almost.
Debit is money that you have deposited in your bank account be it savings or checking. Sometimes there is a fee, sometimes not, but there usually is. You don't have a huge APR with debit because it is your money
Credit is completely different. Credit is money the bank or lending institution is letting you use ON LOAN and you'll pay out the nose for that money, usually upwards of 25% or higher. Look at the APR when you get your first statement from them. if it's like 25% or more pay it off ASAP and try to not use it unless you absolutely have to. Don't listen to these people who just think credit is just that visa symbol at the bottom of the card. Credit can get you so far into debt you'll be paying on it the rest of your life and maybe the next two lifetimes as soon as they figure a way to do that.
Think of it this way. Suppose you use your debit card and buy something for 100 dollars. You have 100 dollars in the bank and that 100 dollars is taken out right then and there and maybe a small fee of $2 or $3..
DONE!
Credit on the other hand... You charge $100.. Then you get a statement for that $100 plus 25%APR (Anual Percentage Rate) and if you miss one payment that APR will jump to 35% or more and if you miss a payment to someone else not even related to the original $100 you charged the APR will STILL jump up and if you charge more on another card that 35% could jump to 50%.. Credit is like dealing with legalized loan sharks except they haven't found a legal way to break your legs yet. Soon as enough Republicans get in office they might make it legal for Bank of America to send someone out to break your legs... Be careful with credit. |
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caro l
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In ackonwledgement to this mail you will be given a well calculated terms and condotion including the agreement.
Thanks And God Bless
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Katie W
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It just means that it's a very advanced ATM card. It is processed through the credit network so they can approve transactions as if it were a credit card (since lots of stores take credit cards, but not ATM cards) -- except that it nearly immediately is paid from your bank account, instead of being put on a line of credit. There is no actual "credit" involved, they just use the same system for approvals and to move the money around.
There may also be an extra fee, just like using your ATM card at a bank other than your own. |
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soldierswife22
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It's not really a credit purchase like you're charging it and racking up debt. It's the exact same thing as a debit transaction. I have US Bank and they charge more fees for a debit transaction so it's in your best interest to select "credit" in stores and stuff unless you want cash back. |
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=)
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if you choose debit, you punch in your pin number. if you choose credit, you sign your name. but essentially they both operate the same. the money comes out of your checking. |
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waffleage
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Debit comes out right away, but credit just takes a bit longer so you can make changes in your account if you dont have enough money right away, One uses a pin the other doesn't But with a debit/credit card you dont get a statement each month they just take it out after a certain amount of time. |
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pcchocoholic
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unless the application you filled out was also for the Visa/Mastercard application, you don't have both credit and debit, both will still come out of your checking account. keeping track of your purchases in regards to your balance would let you know what's going on, if nothing else , call your bank and ask. credit just doesn't require the pen, but requires your signature, debit is pin number. |
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Jason F
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i have the same type of card. it gets charged as credit, but it comes directly out of your bank account, rather than you paying it back at the end of the month, like a normal credit card. dont stress too much, its a great card! its easier to use, and you dont have to worry about late payments or anything |
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Severus Rox My Slytherin Sox
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when you sign as credit it takes longer to come out of the bank. When you do debit most places charge anywhere from 25 cents to like 50 or 75 cents and that charge is to take the monmey from your account. that is how i understand it. It all comes out of your account just credit takes longfer. US Bank is where you go...me too! |
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msegar
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A Debit card, when used, the amount of the purchase will be immediately deducted from your checking account.
A Credit card will be a credit purchase and they will send you a statement with the charges plus interest. Be careful when using this one, it could end up being a bottomless pit.
I have both and rarely use the credit card part of the card. |
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Jesse Radin
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Debit cards generally take directly from your checking account and there is no monthly fees. Another term is checking card. Basically you take money from your checking account when you buy things with this card. A credit card allows you to potentially charge more than you have in the bank, but you are required to pay monthly and if you do not pay the bill you will be forced to deal with very high interest rates, so you have to make sure you don't spend more than you can afford. A good idea is to get a lower credit limit. This won't be an issue at first because without a credit rating you'll usually get a $500 limit.
A checking card that allows you to make credit purchases I believe is just a checking card with a credit card company logo. |
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bayebd24ã€ãƒ„】
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A credit transaction on your debit card is just like taking money out of your bank or making debit card transactions. With the credit option on your debit card you can use the card without entering your PIN number. Having the credit option on your card is not like a credit card and does not effect your credit. The reason being is the credit card automatically takes your charge out of your bank account. Sometimes these charges will take a few days to come out though. With a credit card you are building a balance that you will have to pay sooner or later. If you do not pay the credit card company will send you to collections and then if you still don't pay the amount will show up on your credit as a bad debt and end the end lower your credit score. Does this make sense? |
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jarmstrong382000
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Lose the plastic, and only use cash. You will have LOTS more money! |
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Alfredo G
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Debit takes directly out of your checking account,
.
Credit buys things on credit,,
.
.
you have a $50 bill, $50 in your bank account, and you need to buy
groceries.
.
Buy the groceries on credit, and you still have that $50 for the moment, which can be spent on that bill... |
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nicbaby
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it's kinda dumb, i know. debit basically means it's the money you literally have in the bank, while when you charge it on credit, your using your credit. Which isn't bad, but can sometimes be not the best choice. Always make sure to let the cashier know to charge debit when using your card. |
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dontcachfire
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you can buy things that you dont physically have the money for if you use credit but then you need to make payments to pay off the debt.
with debit, you need to have the money in the bank to make the purchase or else you get crazy over withdraw penalties.
so if you have enough money in the bank use debit. but if you dont have enough money use credit. |
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Thiago H.
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debit= is when they take the money out of your account right when u swipe your card
Debit = takes a few days for them to take that money out |
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Karl
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goodlc |
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