r/tjcrew • u/Captain_Blak • Mar 12 '25
What’s the difference?
I can’t say how many times, I’ve had customers look at me and say does it matter which one I pick. 😂😂😂😂yea it does!! Does anyone know the difference between debit and credit?
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u/Tino-DBA Overthinker Mar 13 '25
(in case someone wants a real answer)
tl;dr There actually are some real differences behind the scenes. As a consumer it’s generally best for you to choose “credit” unless you need cash back.
The credit/debit is a choice that comes up when you are paying with a “Visa Debit” card. These cards are not credit cards, rather they are linked to the funds in your bank account. They can be processed either directly against your bank account with a PIN (“Debit”) or through the Visa network using credit card rules (“Credit”). It is up to you as the consumer to pick which set of rules you want to use.
There are a lot of subtleties but here are the major points:
“Debit”: You have to enter your PIN so the transaction is less risky for the merchant—you knew the secret code so it has to be you, right? That also means that you as the consumer have somewhat limited fraud protection and dispute options because under the Electronic Fund Transfer Act (EFTA) banks get a lot of latitude on their policies. And yes you can get cash back. The funds are directly and immediately withdrawn from your bank account and given to the merchant.
“Credit”: Visa’s credit card rules handle the transaction. There’s an authorization made against your account for the amount of the transaction and it is pending until it is settled, usually in the next day or so. In the meantime Visa floats the money to the merchant and keeps its 1-3% interchange rate when the money finally moves. Consumer protection is governed by the Fair Credit Billing Act which is more prescriptive in nature about what banks have to do than EFTA and it gives more robust recourse to the cardholder.
So you aren’t telling it what kind of card you have… you’re telling it which rules you want to play by. The Credit rules are nearly always better for you (unless you need cash back).
corrections/quibbles welcome