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Debit Card facts Part 1

Posted by Percy A Lowe on August 14, 2013 at 6:00 AM

When you purchase with plastic you’re often asked if you’d like to make it a debit or credit transaction. What’s the difference? The choice you make determines how your purchase is processed, who pays the bill for that processing, how long it takes, and what your rights are. This page covers how interchange fees work and just how important your choice is.

Is it Debit or Credit?

When you use a debit card, you can sometimes choose how the purchase is processed. It can either be an online transaction or an offline transaction. If you punch in your personal identification number (PIN), it’s an online transaction – it gets completed electronically and it’s done pretty quickly. If you don’t use your PIN and you sign a charge slip instead, it’s an offline transaction. Offline transactions are processed much like plain-vanilla credit card purchases.

Even though you use a debit card, offline transactions are very much like credit card transactions. Your debit card might have a Visa logo on it, for example, so it runs through the Visa network. It’s not a credit transaction, but it uses the same infrastructure.

Click the link below and learn more about using a debit card:

http://vhss.oddcast.com/vhssplayer.php?acc=3793987&ss=2325316&sl=0&l=0&h=338&w=450&bc=FFFFFF&mid=119734&t=1

 

Categories: Building Credit Score

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