LDS Living Magazine - How You Run Them Through

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How You Run Them Through
by Dave Ramsey

Dear Dave,

When I use my Visa debit card I’m asked if it’s “debit” or “credit.” What difference does it make if you choose one over the other?

Marlon

Dear Marlon,

Since your debit card is a Visa product, if you push “credit” it means the merchant can process the transaction as if it were a Visa card. It’s run through the Visa system, and they pay Visa a fee just as if you were using a credit card.

Now, if you press “debit,” you’re using the ATM (automated teller machine) function of the card. This means you’ll have to enter your PIN (personal identification number) and this send the transaction through your bank system instead of the Visa system. I recommend running your card through the Visa system. By doing this, you’ll have Visa fraud protection on your side in the event that you lose your card or someone steals your PIN!

– Dave

* For more financial advice plus special offers to our readers, please visit www.davesays.org or call 1-888-22-PEACE.

Comments on this article	ADD COMMENT
Debit or Credit?? Posted by Nancy from Gods country It also depends on what the bank charges. Keep in mind, some banks charge for a debit charge. My bank charges .25 for each debit payment. It adds up quickly if you use your card enough. I've seen some charge .50. But, if you want to avoid foreign ATM fees, using a debit is worth it to get extra cash out. I am living out of state from my bank, and the foreign ATM fees would cost a fortune. So, I get extra cash when I make a purchase, pay the .25 and save 3.00. from my bank and the 2.00+ from a foreign ATM usage fee. Well worth it. So, if you want extra cash and want to save the ATM usage fee, using a debit is the way to go.
cost to the merchant Posted by Jan from Kent, Washington I wish Dave would comment further on this question. I would like to know the difference in the cost to the merchant when I use debit or credit options on my debit card. If we are to be "our brother's keeper" then we should know if we are causing unnecessary stress to the merchant. Thanks.