We have all heard the question as we are about to check out at a store.
“Credit or Debit?” Well a lot of folks might choose debit. I tend to choose credit and here is my reason for doing so. Did you know that both transactions while they would eventually be deducted from your checking account follow a different method in the process making use of different networks.
So you choose credit over debit on your debit visa card. Your signature is then required and this transaction will be passed though the Visa Network, which will come with extra security provided by the credit card company. This includes protection and Visa’s zero Liability. plus if you are trying to reestablish credit. Using your card as a credit card also helps out.
Stores are not seriously fond of you using your card as a credit; the reason? They have to pay a higher percentage fee as opposed to when you choose to debit. The stores prefer the debit option because they would not incur this hefty fee but you will not have the same level of protection choosing credit offers.
The debit transaction also automatically debits your account through the electronic fund transfer (STAR OR NYCE); you will not receive visa’s protection, plus there are other bank incentives you would also not receive.
Which would I choose? I will opt for credit each time; however if I really need cash back I might opt for the debit. That rarely occurs though. I personally prefer the liability protection offered by choosing credit. Which would you choose?
