debt card question

[OUHOMER]

when i pay at the pump or even at some stores with my debot card it ask credit card or debit card.
I mean really what is the difference? I always just hit credit because its a little less hassle.

just wondering

[olevetonahill]

when i pay at the pump or even at some stores with my debot card it ask credit card or debit card.
I mean really what is the difference? I always just hit credit because its a little less hassle.

just wondering
Cause if its Debit they dont have to pay the CC fees . so they dont charge you as much !

[goingoneight]

You have a "debt" card? Dood, just GIVE IT BACK!!! :D

[OUHOMER]

You have a "debt" card? Dood, just GIVE IT BACK!!! :D


I guess i should:D

[OUHOMER]

Cause if its Debit they dont have to pay the CC fees . so they dont charge you as much !

"they" being the store or the bank? I dont see any extra charges using it as a credit card?

[Vaevictis]

Most places don't charge more based on debit or credit card, although the amount they get charged to process them is often different.

Main difference from the consumer's point of view is the style of payment -- debit cards immediately deduct from the linked account, credit cards go on your tab which you pay back whenever you normally would.

[Dio]

The bank is charged less by Visa per credit transaction than per debit transaction. Also, I've heard there is more protection for the consumer on credit transactions than on debit transactions as far as fraudulent activities go. At BOK (and a few others) we set the "debit" cards to only work as "credit" (the money still comes out of your account, but you can't get extra cash back). Froze can probably tell you better than I can.

[Frozen Sooner]

when i pay at the pump or even at some stores with my debot card it ask credit card or debit card.
I mean really what is the difference? I always just hit credit because its a little less hassle.

just wondering

The only difference (if you're using a VISA or MasterCard-branded debit card) is which authorization system they go through and how much they authorize on your card.

If you use "debit" it authorizes through the ATM network and (depending on your bank) should post to your account immediately.

If you use "credit" it goes through either the VISA or MasterCard authorization system, and may take a few days to post to your account. Using the "credit" option allows the gas seller to authorize up to $40 on your card as a guarantee of payment of the charge, which can cause problems in your checking account if your institution uses "hard" holds on authorizations.

In the long run, so long as you keep a decent balance in the linked account, they should be a wash.

[Dio]

Froze can probably tell you better than I can.

Told ya!

[Frozen Sooner]

The bank is charged less by Visa per credit transaction than per debit transaction. Also, I've heard there is more protection for the consumer on credit transactions than on debit transactions as far as fraudulent activities go. At BOK (and a few others) we set the "debit" cards to only work as "credit" (the money still comes out of your account, but you can't get extra cash back). Froze can probably tell you better than I can.

You are absolutely correct on there being more protection for fraudulent activity on credit as opposed to debit. As in "Lots" compared to "almost none." If someone has your PIN, you're screwed, blued, and tattooed, 'cause there's almost NO way you're getting your money back.

[olevetonahill]

Told ya!
You so smart, My response was a WAG:D

[OUHOMER]

Thanks, i was just wondering. i always just hit credit because its easier. As long as it dosent cost me anything. So cool

[colleyvillesooner]

I've bought beer more than once using the "Credit" button to make it hit after I got paid. :D

[OUHOMER]

I really never noticed the delay. I guess I should pay attention

[OUHOMER]

In the long run, so long as you keep a decent balance in the linked account, they should be a wash.

The wife keeps the check book. when she enters the deposit balance she always rounds down. Deposit $ 503.19 she enters $500. She has done this for over 20 years. The ATM receipt always shows a lot of money in the acount but the wife says we are broke and don't have any money in the bank:cool:

[jk the sooner fan]

glad you explained this, it always confused me.......i have a wells fargo visa check card.....which has the word "debit" printed on the card (not embossed)......but i dont have the debit option....i always have to say "credit", and it comes out of my checking account

never understood it

[colleyvillesooner]

another difference, debit you enter your pin, credit you sign for it.

[Tulsa_Fireman]

I've heard the rumor from more than one source that if you make purchases with your debit card and select "debit" and enter your pin (something I can't do through BOk, apparently), some institutions, depending on the place of purchase, will stick you for that non-participating ATM fee. Example being, the fee BOk charges me for using a Bank of America ATM.

Any truth to that?

[colleyvillesooner]

I have Bank of America and haven't been charged like that.

[oumartin]

Midfirst debit cards are always charged as credit cards.

[soonerbrat]

another difference, debit you enter your pin, credit you sign for it.



You don't sign for credit cards at the gas pump. And when I use my debit card at the gas pump, it doesn't come out of my account immediately..when you scan it, it just tests $1 to see if the card is legit and the charges go through a couple days later. that's the problem with using debit cards sometimes....when you use it - somewhere other than a gas pump - it immediately puts a hold on the account for that amount, and like my bank, it's a "pending" transacation. but it doesn't actually go through and be cleared for a couple of days, usually..in the meantime, it can be taken off the "pending" list and you might think you have more money in your account than you actually do and you can actually overdraw your account. When I worked at the bank, we got a lot of questions about that. "but my account said I had $XX" well...if you'd balance your checkbook, you'd know you really didn't.

Also, when you go to a restaurant, it doesn't take the amount of the tip out immediately..just the base amount. the actual transaction doesn't go through until the bank gets the credit card receipts from the merchants.

of course i should never tell anyone to balance their checkbook..i am the world's worst about that. i just keep enough money in there so i don't overdraw it

[soonerbrat]

I've heard the rumor from more than one source that if you make purchases with your debit card and select "debit" and enter your pin (something I can't do through BOk, apparently), some institutions, depending on the place of purchase, will stick you for that non-participating ATM fee. Example being, the fee BOk charges me for using a Bank of America ATM.

Any truth to that?


i have heard that banks will start charging a fee for using debit cards...i heard that a long time ago and it still hasn't come to fruition, but it doesn't mean it won't.

[springs sooner]

You don't sign for credit cards at the gas pump. And when I use my debit card at the gas pump, it doesn't come out of my account immediately..when you scan it, it just tests $1 to see if the card is legit and the charges go through a couple days later. that's the problem with using debit cards sometimes....when you use it - somewhere other than a gas pump - it immediately puts a hold on the account for that amount, and like my bank, it's a "pending" transacation. but it doesn't actually go through and be cleared for a couple of days, usually..in the meantime, it can be taken off the "pending" list and you might think you have more money in your account than you actually do and you can actually overdraw your account. When I worked at the bank, we got a lot of questions about that. "but my account said I had $XX" well...if you'd balance your checkbook, you'd know you really didn't.

Also, when you go to a restaurant, it doesn't take the amount of the tip out immediately..just the base amount. the actual transaction doesn't go through until the bank gets the credit card receipts from the merchants.

of course i should never tell anyone to balance their checkbook..i am the world's worst about that. i just keep enough money in there so i don't overdraw it


this is correct. I used to work at a bank and did fraud protection. The porblem is with the hold, most financial institutions do a 3 day hold, well your charge may come thru on day 2 and the hold is still there so now you, if you are a poor college student and try to get gas it will deny you thinking your account is negative.

we also told our customers to never enter your pin to any machine uless it was an ATM machine. less risk of someone with computer hacking software to get your card and pin #'s

if you can use a US Bank ATM since they are a large processor of ATM transactions that most banks use you will not get charged a fee from them. At least i dont.

[Frozen Sooner]

i have heard that banks will start charging a fee for using debit cards...i heard that a long time ago and it still hasn't come to fruition, but it doesn't mean it won't.

Any bank who does that is idiotic. We WANT you to use debit cards.

[Tulsa_Fireman]

Any bank who does that is idiotic. We WANT you to use debit cards.

Why?

[Frozen Sooner]

Why?

It costs me $3.50 every time you talk to one of my employees. If you're just pulling out money, then we're not making the money back on the conversation. We'd much rather you use the debit card each time you need money-costs us much less from that standpoint.

Plus, the more you use debit cards, the less we have to keep cash in our vault. Vault cash is a non-performing asset-that's money that could be lent out if we didn't have to keep it in our vault. Every $100k I have to keep in my vault to keep it liquid is another $11k or so I could have earned in interest income.

[ultimatesooner1]

I've heard the rumor from more than one source that if you make purchases with your debit card and select "debit" and enter your pin (something I can't do through BOk, apparently), some institutions, depending on the place of purchase, will stick you for that non-participating ATM fee. Example being, the fee BOk charges me for using a Bank of America ATM.

Any truth to that?

Bancfirst does this so I always choose the credit option

[Harry Beanbag]

It costs me $3.50 every time you talk to one of my employees. If you're just pulling out money, then we're not making the money back on the conversation. We'd much rather you use the debit card each time you need money-costs us much less from that standpoint.

Plus, the more you use debit cards, the less we have to keep cash in our vault. Vault cash is a non-performing asset-that's money that could be lent out if we didn't have to keep it in our vault. Every $100k I have to keep in my vault to keep it liquid is another $11k or so I could have earned in interest income.


So...umm...how much cash do you have in your vault? TIA :texan:

[soonerbrat]

Any bank who does that is idiotic. We WANT you to use debit cards.


don't yell at me. i'm just the messenger.

[Dio]

You don't sign for credit cards at the gas pump. And when I use my debit card at the gas pump, it doesn't come out of my account immediately..when you scan it, it just tests $1 to see if the card is legit and the charges go through a couple days later. that's the problem with using debit cards sometimes....when you use it - somewhere other than a gas pump - it immediately puts a hold on the account for that amount, and like my bank, it's a "pending" transacation. but it doesn't actually go through and be cleared for a couple of days, usually..in the meantime, it can be taken off the "pending" list and you might think you have more money in your account than you actually do and you can actually overdraw your account. When I worked at the bank, we got a lot of questions about that. "but my account said I had $XX" well...if you'd balance your checkbook, you'd know you really didn't.

Also, when you go to a restaurant, it doesn't take the amount of the tip out immediately..just the base amount. the actual transaction doesn't go through until the bank gets the credit card receipts from the merchants.

of course i should never tell anyone to balance their checkbook..i am the world's worst about that. i just keep enough money in there so i don't overdraw it

THANK YOU BRAT!

If I never had to explain this to another client ever, it would be too soon.

[Frozen Sooner]

don't yell at me. i'm just the messenger.

I ain't yelling at you. I'm irritated at the thought process that says "Hey, here's a service that saves us money that we WANT people to use-let's charge them more to use it than to not use it!"

[Shneeg11]

there's a long version to this, i work at heartland payment systems,and basically, to process a credit card, it costs the merchant more than a debit, and yes, some banks charge your account if you have to enter your pin number, its all part of the visa vs. walmart lawsuit where walmart sued visa for charging the same rates for both credit and debit. walmart one, and some credit card processors (heartland) give back the entire check card rebate instead of only a little bit...basically some companies make more money off of your debit card b/c they charge almost as much, it shouldn't reflect on your account unless you have to type in your pin, but i'm new to the industry