When you use your debit card at a face-to-face check out do you ever hear the clerk ask you "Debit or Credit"? When they ask you this, do you get that funny feeling in your gut and at the same time think to yourself, what's the difference or which way is better? I use to feel and think that way.
There's really no right or wrong answer but one way is better / safer than the other.
If you answer "Debit", you've just turned your card into a "ATM" card. You'll be asked by the clerk to enter your pin number and the transaction is processed through the ATM system. If your bank charges for ATM transactions outside of their machines, you just got hit with an ATM charge. (ouch!) This transaction also takes longer than running it through as a credit card.
If you answer "Credit", it's processed just like a credit card except it comes out of your checking account. You don't provide your pin number. The transaction is run through the Master Card / VISA system and you have all the fraud protections of MC & VISA.
So, which way is safer? Never say Debit. You'll not have to worry about someone getting your pin number.
Todd Colucy is the Director of Business Operations at NewPointe Community Church. He also writes a personal fincance blog at ToddColucy.com.
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