Dave Says: Debit or Credit?

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 sends 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