When to use your card as debit or credit?
Apr 10, 2010
in
Small Business Merchant Accounts
We just got our first VISA debit card and I wondered what happens when the merchant processes it as a credit. Does the money still come out of the account just like the debit does? I just want to make sure that I deduct it in my checkbook so I want to make sure I am doing it right.
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3 comments
PooPooLaTrash on April 10, 2010 at 7:05 pm
Yes, it will come out of the funding source (your bank account) whether the transaction is processed as a debit or credit. The only difference is if you elect to purchase as a credit, you don’t have to enter a PIN number. The rest of it has to do with merchant processing fees. More info here: http://banking.about.com/od/checkingaccounts/a/debitvscredit.htm
Mrs. Right on April 10, 2010 at 7:05 pm
If you never signed an agreement directly with VISA then it acts just like a debit when you use it as credit.
My Take on It on April 10, 2010 at 7:05 pm
Yes, the money comes out of the account the debit card is associated with. You are not being extended credit.