Debit or Credit-Which should you choose at the checkout?

So many people carry a debit card (aka check card) these days. They’re so convenient, they’re safer than cash, and the card allows the vendor to take the money right from your checking account. But at the checkout you are often asked Debit or Credit. Which should you choose & what’s the difference?

You might think that since it’s a debit card you have to say debit, but that’s not true. The best option for you is to choose Credit! (Yes, choose credit even though you are using your debit card) The result might seem the same either way, since the money will still be deducted from your checking account, however there is a BIG difference.

Choose Credit and you will be asked to sign for your purchase. Signature transactions are routed through the VISA network, which comes with the additional security offered by credit card companies, fraudulent use protection, and VISA’s Zero Liability Policy.

Just so you know, because we want you to have all the facts before deciding what to do. The credit union does get paid a small amount for each transaction that is routed through as credit, but remember we are a credit union! We don’t give the money we earn to a couple people on our board. Any money we earn is returned to ALL our members by bringing you new products and services, keeping our fees low, our loan & credit card rates low and our deposit rates high.

Choose Debit however, and you will be asked for a 4-digit PIN number. These purchases are processed through an EFT system like STAR or NYCE which don’t provide the additional liability protection offered by VISA.

While it’s great for us to get that little bit of extra income, the real bonus is the added protection choosing Credit offers you. So unless you are going to use the cash back option on your transaction to avoid an ATM fee, choose Credit, and be assured that if sticky fingers get a hold of your card or card number, you will be protected!

Post by: Cari J.