What is the Difference Between Debit and Credit When I Use My Bank Card?
When you use a bank card in a store, you are often offered the option of using it as a debit or credit card. It can help to understand the difference between debit and credit in the sense of a bank card when you make this decision, as there are some distinct and important differences. It is important to remember that in either case, the funds are taken directly from your account; using your bank card as a credit card does not magically create a line of credit. The primary difference between debit and credit is in the way that the transactions are processed. When you run your bank card as a debit card, you will be asked to enter a personal identity number (PIN), and the funds are removed from your account instantly. When you select a credit option, the transaction is verified with your signature, and the funds may not be removed from your account right away, depending on how the store processes its credit card transactions. Many do what is known as “batching,” meaning that all of the cr
When you use a bank card in a store, you are often offered the option of using it as a debit or credit card. It can help to understand the difference between debit and credit in the sense of a bank card when you make this decision, as there are some distinct and important differences. It is important to remember that in either case, the funds are taken directly from your account; using your bank card as a credit card does not magically create a line of credit.
