I hate check cards

[VenomX]

I wish they would get rid of doing debit on a check card.

We pump the gas for the customer. We have to ask them cash or card before we start the pump.

Never fails someone will hand me their card and then say "DEBIT!".

Now if they just hand me the card I will just run it as credit since its basicly the same thing with a check card. But the ones that say debit get the card ran as a debit card and they then have to get out of their car and input their PIN. All the while they bitch and moan that they had to get out of the car.

If its slow I will tell them they can just use it as a credit card and it will work the same as a debit but they never believe me. They insist that it will charge them for using it as a credit card. Or that it wont take the money from their checking account but will be billed to them with interest at the end of the month.

Then theirs the ones that dont understand why the card is charged $1 then the real total and the $1 is cleared off in a few days. They insist we are ripping them off for $1. I feel like asking these people then why do you use your card here if you think we are ripping you off but I bite my tounge.

[Eric the Grey]

If its slow I will tell them they can just use it as a credit card and it will work the same as a debit but they never believe me. They insist that it will charge them for using it as a credit card. Or that it wont take the money from their checking account but will be billed to them with interest at the end of the month.

I don't know if it's true or not, but I've been told that if you use it as a "debit" card, it can only be used that way, but once you ever use it as a "credit" card, it can never be used as a debit card again.

For the record, I've never used my debit card as a credit card, and merchants who have tried to put it through as debit could not get it to go. I've also been told (by said merchant) that it's cheaper for them to do debit, but then again, I only have their word for it.


Eric the Grey

[Jadedcarguy]

I don't know if it's true or not, but I've been told that if you use it as a "debit" card, it can only be used that way, but once you ever use it as a "credit" card, it can never be used as a debit card again.

Not true at all. I use my debit card as a credit card all the time. It still works as a debit.

I've also been told (by said merchant) that it's cheaper for them to do debit, but then again, I only have their word for it.

That is true. If it's used as a credit card, Visa or whoever will charge the merchant a processing fee. If it's used as a debit, it's in effect writing a check, and there is no fee.

[Javarod]

That is true. If it's used as a credit card, Visa or whoever will charge the merchant a processing fee. If it's used as a debit, it's in effect writing a check, and there is no fee.

This is mostly true, in fact there was a huge lawsuit, Wal*Mart vs Visa & Mastercard, basically they told Wal*Mart that you pay the same fee regardless of which way you take the card, and Wallyworld didn't like that answer. This is prolly one of the few times Wal*Mart has done something good for the little guy, since every merchant was helped by this, but few could've afforded the fight. As to debit, there is a processing fee, just like there is for checks, but its very small, I think around 10% of what it is for credit cards, much easier to absorb, hence all the merchants pushing debit over credit, the savings add up.

[Jadedcarguy]

Must depend on the bank, for my credit union it is cheaper for them to process it as Visa, so to encourage members to use it as credit, they give us cash back on each Visa transaction

That's a pretty cool policy. I'm in the process of transferring all of my banking to my credit union from the unholy entity known as BofA. I'll have to see if they offer that.

[PepperElf]

i've never tested it myself but i did hear it cost more to use a card one way than another, but i also don't remember which was suppose to be higher... debit or credit...

the main difference is...if you pick Credit you most likely have to sign.
if you pick debit you have to use the pin.

i usually use debit. but then again back when i bought gas, i never used the full service pumps. so i didnt mind getting my butt out of the car ...

but once you ever use it as a "credit" card, it can never be used as a debit card again.

Totally false. Out in Japan there's only a couple of place i can use my debit card as a debit card...mainly a few ATM machines and a couple of stores. at all other stores I can ONLY use it as a credit card, because their system doesn't know my bank.

But... when I go out and use the card, or make online purchases... it does NOT prevent me from using my card as a debit card.

[CanadaGirl]

I'm glad here in Canada we have two different cards for a debit and credit. :| Sooo less confusing.

[Lingering Grin]

For the owner of the card the only difference between debit and credit, is that debit takes the money out NOW, and credit takes the money out after about 3 days.

It's actually a pretty useful thing when say, you need to buy groceries today, but you don't get paid until 2 days from now. You use it as credit, and then by the time the charge clears, you'll have your paycheck in


As for businesses... I have no idea what the difference is

[Byronthebanker]

Your debit card is issued to you from your bank as a convenient way for you to transact business with merchants. The features of the card include using ATM networks - including the ATM at your bank and others, making purchases through ATM networks (PIN based transactions - where you pick "DEBIT" on the machine and put in a PIN number), and you can also take advantage of either the VISA or MasterCard network - (where you push "CREDIT" and sign your name). For the purpose of this discussion the term Check Card and Debit Card are the same.

The card is attached to your checking account (most of the time - sometimes money market) and every time you use the card the money will come out of your account - there is no option with a check card to have a bill at the end of the month. The money will come out of your account just as quickly - with a PIN based transaction, the money is sent to the merchant as soon as the transaction is approved. When you sign, those funds are put on hold at your bank (so you don't spend the twice) and are transferred to the merchant when they submit their receipts (batch the machine) for payment.

Further, you are welcome to use your card with a PIN number, or sign your name, and go back and forth as many times as you want, whenever you want without ruining any other features of your card.

Merchants pay a processing fee each time they accept a card as payment. If you use your PIN number, the transaction goes over the cheapest ATM network that they can find to process transactions. Technically it is a EFTPOS network, which stands for electronic funds transfer point of sale. If you sign your name, it goes over the Visa or M/C network - which has more features, and is more expensive for the merchant. The difference in transaction fees is about 25 - 30 cents more when the customer signs her name, but it varies based on the retailer, their volume, and several other factors - like transaction amount. This is why some banks charge you a fee when you make PIN based purchases - and some banks offer rewards or cash back when you make signature base purchases.

What's in it for you though: Electronic transactions are all covered by the same law: Regulation E in regards to fraudulent use of a card. However, if you choose to sign your name - and thus are using the Visa or M/C network, you get chargeback rights, Visa has a zero tolerance fraud protection, favorable foreign exchange rates, and the convenience of greater acceptability ( more merchants use signature based puchaes than offer PIN based). If you use your PIN, you don't have the power of Visa or M/C behind you - therefore no chargeback rights, and disputes get mitigated through whichever EFTPOS network the merchant has chosen.

Merchants will argue that PIN based is more secure as there is no signature matching, and no ID checking when someone uses their PIN - only you know the number, so if you get the number right, you're golden. However, how hard is it really to look over someone's shoulder to see them do a PIN number? or how many of us have told a friend the PIN for some reason? or how many of us have the most common PIN of all? (1234) I contend that merchants comparing signatures on cards and receipts is a more secure way of doing business - but thorough discussion here notes some inconsistancy with that being accomplished. And also, it's impossible that my signature looks even close to the same on my card as one of those electronic keypads.

That's Checkcard 101. Happy spending.

[VenomX]

Our new pumps are weird.

We swipe the card. It asks Debit or Credit?

If you tell us Debit..

You enter the PIN.
It charges $1 to verify the card.
Lets us pump.
Charges the final amount.
Prints a receipt and at the bottom it says "PIN used".

If you tell us Credit or dont tell us which..
We swipe the card and choose Credit.
It charges $1 to verify the card.
Lets us pump.
Charges the final amount.
Prints a receipt and at the bottom it says Visa/MaterCard/Whatever card.

Customer never signs a thing.

This is just asking for trouble but its how the Gas Company has it set up. Also we had a guy come in and complain to the station owner because one of the new guys refused his card because it wasnt signed on the back. The owner told the employee it didnt need to be signed.

I have always thought we should check ID's when cards are used and make sure the signature closely matched but thats not what they want us to do. I WILL request ID if I look at the back and it asks me to ask for ID. Most always tell me I am the first or one of a very few who have seen that and asked.

I am still looking to get my boss to set a minimum for credit card use. We get people looking to use a card for $2 or $3! No way theres any profit there, plus its not worth the hassle for that little amount. Takes longer to run the card than pump the darn gas.

Does Visa/Master Card allow merchents to set a minimum?
The local UNI Mart has set a minimum of $5 for credit cards.

[bigjimaz]

If it's used as a debit, it's in effect writing a check, and there is no fee.

Maybe for the merchant.

Not for me. Every time I use my bank debit card as a debit card I get charged 35¢ with no charge to use it as credit.

[Lingering Grin]

This is just asking for trouble but its how the Gas Company has it set up.

That's how it is pretty much everywhere. There's also a scam where a guy will come up to people who are paying cash and say that they need cash, but can't get it out of the bank, and then offer to use their credit card to buy your gas and then you give them the cash you were going to use.

If anyone does that, there's a 99.99999% chance the credit card is stolen.

[PepperElf]

Merchants will argue that PIN based is more secure as there is no signature matching, and no ID checking when someone uses their PIN - only you know the number, so if you get the number right, you're golden.

some of the gaijin stores i go to still check id if you're doing debit just to cover their butts

one of my old banks did the 2 card thing - one debit/atm and one credit card. i didn't like it cos if you needed a new debit card, they'd cancle BOTH cards & replace both... their excuse being that you can always write a check or walk into the bank for money. and that it didn't matter if you had online-bills to pay... that's how they ran their bank.

my money left them after that & moved to a new bank. new bank has one card for both debit & credit...and it has a photo of me on it

[LadyAndreca]

Quite a few banks around here want you to use your card one way and will charge you a fee if you, say, use credit instead of debit. I wouldn't want to use any bank that does that, so when I moved here, I looked around for a bank that didn't. Mine has a points rewards program for using credit, but doesn't charge a fee for using either debit or credit.

[blas]

Living in a....stick in the mud, as I like to say, there are a lot of small businesses that don't even have the debit option.

My debit card has been run as credit and I've never been penalized for it.