Over the weekend I was grocery shopping at HyVee and was asked, “credit or debit?” I don’t know how many times I have been asked this until it clicked with me; why am I being asked? Here is why we all get asked debit or credit.
The Difference Between Credit and Debit
When a person makes a purchase on an item and you select debit on the keypad, enter your PIN number, you are technically making an online purchase with the bank. This allows for the funds to be drawn out of your account immediately. When a transaction goes through as a debit, you can also draw money out, similar to an ATM. Using the cash register like an ATM is a great way to avoid those pesky convenience fees when you are not at your banks ATM.
On top of the immediate withdraw from your bank account, the stores you shop in are hoping you select debit as well. The reason behind this is because they get charged at a lower percentage fee from the merchant service provider they use for transactions.
On the flip-side using your debit card for credit has its advantages. Credit purchases are run through the MasterCard and Visa Network, meaning that your card would be given the same protections of an actual credit card. If a fraudulent charge is made on your card, the Network would protect it and you are more likely to be reimbursed for the charge.
Consumer Protection
Next time you are at the store and you hear debit or credit you will understand your options. These options are available and fees associated with these options are due to The Dodd-Frank Act. This act gives us as consumer’s protections when making purchases.
If you find yourself getting into trouble with your credit card debt, contact Castle Law Office to help you with your Chapter 7 or Chapter 13 Bankruptcy options. Call us today at 816-842-6200 to speak with an attorney. Or you can email us and schedule your free consultation.
