Up to today, I’ve used my debit card at department stores – they slide it thru their machine, give me a receipt to sign, give me my copy and I’m on my way. This is a debit to my checking account.
Today I used my debit card at the grocery store for the first time. I slid the card thru the machine, then had to punch “ATM” or “Credit.” Now, I know that Visa has something to do with my debit card – their logo is on the card, but I punched “ATM” – reasoning that I wanted it to come out of my checking account. I also had to put in my PIN #. The clerk handed me the receipt – I didn’t have to sign. What the heck is the relationship between my checking account at the bank and Visa? And am I correct in assuming that if I had punched “credit” at the grocery store and signed the receipt, it still would have been a debit to my checking account? I’m confused.
As I understand it, if you had pressed credit, it probably would not have gone through. My bank tells me that my debit card with the MasterCard loogo is just a debit that accesses my checking account. The MC logo just means ant establishment that can process an MC transaction can process my debit card.
I have a Mastercard debit card through my bank, and anywhere that accepts MC accepts my debit card. Some places, such as Wal-Mart or certain grocery stores, allow me to use my debit card as an ATM card of sorts, which I prefer because I don’t have to waste time signing anything (I like to pretend to be busy, even though I am entirely underwhelmed with life). In both cases, the moola comes out of my checking account.
Blessed are the Fundamentalists, for they shall inhibit the earth.
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i have the same kind of bank card. i ran into the same thing several times and tried both options. your right, if you choose debit, you enter your PIN and don’t sign. but, if you choose credit, you sign like a regular credit card but don’t need a PIN.
i inquired at my bank about what the difference was, here’s the answer i got.
if you use it as a VISA/MC then the store is charged for the transaction by VISA/MC, if
you use it as a debit card then the store is charged for the transaction by the bank that holds the account. the store that accepts it as a debit card also has the ability to issue you cash at the register just like it were a teller machine. but either way the cash still comes directly out of your bank account, the only difference is the route the transaction takes.
I’ve noticed the same thing, so I always pick Credit.
Then again, I generally pay with a credit card (for an extra 25 days interest on my money, frequent flier miles or other incentives, and neat little graphs of my spending habits at the end of the year).
The only difference I’m aware of is if you do ATM transactions it goes through a LOT faster, and if you check your account online the next day, the transaction will be subtracted. If you do credit, it takes a LOT longer.
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The things that I do…” Elton John
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Interesting, Mark. IIRC, you’re in Chicago. I’m in Texas, not that that necessarily makes a difference, because my bank is national, or international, but I’ve never had a charge for a POS debit transaction.
I don’t think there’s a fee on mine for using it as ATM, but maybe I need to look closer at my bank statements. So, I gather I can use it either way and it still comes out of my checking account. I just don’t want to buy on credit – I’m trying to pay off the freakin’ credit cards.
Used to have a bank debit card years ago,
issued by Bellco Credit Union (Bell System
employees). They didn’t have any ATM’s
of their own, and the thing functioned as
a credit card as well. In Denver at that
time, all the ATM’s were universally on one net, and the banks hadn’t thought of “foreign atm” fees yet, so I thought it was very convenient. And it looked exactly like a credit card.
These days, when BofA issued me one, I turned it back in. Reason? The primary protection you have against credit card theft is that you are liable only for $50. The same applies to the debit card, but in one case you are merely wrangling with the credit card company about the thousands of dollars on your bill, while in the other, your checking account has been cleaned out and overdrawn.
BTW, in the whole time I carried that card and used it as a credit card, I had ONE instance of a merchant looking at it, saying “sorry, that’s a debit card”, and refusing it. Questions:
1 - How did he know? Is there actually some way to tell, or did he just know that cards issued on certain specific institutions were debit cards?
2 - Why should he care? Perhaps it works like a bounced check if you’re overdrawn, which would be trouble for the merchant, but after refusing my card, the guy took a personal check.
Goodness, debit cards seem to be the order of the day 'round here.
About the machines - Dave’s bank told him right, your button choice affects the flow of the transaction, nothing more. Either “credit” or “ATM/debit” transaction will work, though as noted “ATM/debit” usually will hit your account quicker. If you choose “credit” you must sign the receipt; if you chose “ATM/debit” your PIN takes the place of a signature.
Some ATM card networks (like Honor) offer POS (point of sale) capability with a regular ATM card. In that case, your transaction will be refused if you try it as a “credit” transaction.
yabob asks:
All debit cards that I have seen have the verbiage “check card” or “debit card” printed somewhere on the card itself.
Got me. A debit card, if authorized through the terminal or by phone, does not get returned to the vendor for any reason. Once the transaction is authorized it becomes the issuer’s risk. If the vendor accepts Visa or Mastercard credit cards they are, by agreement, supposed to accept Visa or Mastercard debit cards as well.
After all, what is your hosts’ purpose in having a party? Surely not for you to enjoy yourself; if that were their sole purpose, they’d have simply sent champagne and women over to your place by taxi. – P. J. O’Rourke
I agree with yabob. Even if you are in the right and the cash (minus the fifty) is credited back to you, it may take weeks. In the meantime, I gotta eat!
When my new bank (mine was acquired) sent me one - I asked for a normal ATM card instead. They looked at me like I was from outer space. I guess most customers like them.
I have TCF and I used it as a POS until I got charged then it was pointed out that on the agreement in small print it said Point of Sale fees apply in IL, IN, WI and a few other states. So I guess I could go to CO and use the POS and NOT get charged.