Debit or Credit? Ever Wonder Why You’re Asked?

It’s time to pay for your groceries at the supermarket. You tell the cashier you’re paying with your Visa CheckCard (debit card). Then he asks “debit or credit?” Ever wonder why you’re asked this question?

The merchant is simply asking how you would like the transaction to be processed. No matter how you respond (debit or credit) the purchase will be deducted from your checking account. In other words,

if you say “credit” the purchase will not be billed to a credit card. So what’s the difference?

Debit

• Processed through the ATM network

• You can get cash back from your available balance up to the merchant’s limit

• You must use a PIN to authorize the sale

Credit

• Processed through the Visa network

• You might sign to authorize the sale

• The name of the merchant will appear on your monthly statement

Visa transactions are more efficient and less costly than ATM transaction. If you don’t need cash back, choose credit. You can help save your credit union money by choosing credit instead of debit. As a financial cooperative, any cost savings we experience are returned to our members in the form of lower loan rates, higher dividend rates and new and improved products and services.