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.

What is 3" x 2", flat, and made of plastic?

Going grocery shopping, out for supper, or on a well-deserved vacation and don’t want to carry a bunch of cash? Boy do we have the solution for you! Instead of carrying a bundle of paper, carry a 3”x2” piece of plastic! It’s our VISA® debit card. It fits nicely in your wallet without all the bulkiness. It’s convenient and easy to use. When you make your purchase, you can sign as credit or use a PIN for debit. The money comes out of your checking account either way!  And  then, when you’re on that vacation and you are running low on gas, do not fear, that little 3”x2” debit card is here! You can get gas 24/7 with the plastic pump attendant!

Post by: Alice E

Will that be debit or credit?

You just swiped your debit card – should you choose debit and enter your PIN, or sign for credit?

Did you know you are more susceptible to an attack if you use your PIN?  When you choose debit, you could fall victim to PIN harvesting by a “Man-In-The-Middle” attack.  Fraudsters can intercept your information and PIN as it passes through the electronic network.  They can then use that information to create a fake debit card and withdraw your money using your actual PIN.  Even if a transaction was fraud, it is a lot harder to recover those funds when a PIN was used.  

If you are looking for a safer way to make your transactions, choose credit and sign rather than entering your PIN.  Signing at POS prevents PIN harvesting from happening.  Also, signing for your transaction gives you additional protection from VISA or MasterCard.  All HCCU debit cards carry VISA Zero Liability coverage for signature transactions that will cover you in case of fraud; PIN-based transactions do not receive the same level of protection.

So whenever you can, choose credit and sign on the dotted line rather than punching in a PIN code for purchases.

Post by: Lori S