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Message: <blockquote data-quote="nofearfactor" data-source="post: 2432227" data-attributes="member: 1535">Its because it costs less money to the retailer when you choose 'debit'. And the king of retailers is the king of saving money too.When youre at the checkout of any store, youll be posed a question debit or credit? And although the outcome seems the same (a deduction from your checking account), its a different process with different consequences, and it uses two different networks. So you have a Visa check card. Choose credit and youll be asked to sign for you purchase. All signature transactions go through the Visa network, and come with the additional security offered by credit card companies. That includes fraudulent use protection and Visas Zero Liability Policy.But stores really dont like this option, which is why they ask you the debit or credit question. And the reason? Banks get a much larger percentage fee from the merchant or vendor when you sign for your goods, and it is an enormous source of non-traditional revenue. Thats why banks offer reward points and incentives to check card holders who choose the credit option (my banks debit card tied to my checking account is a cash back rewards card).On the other hand, when you choose debit, youll be asked for a 4-digit PIN number. This purchase is then processed through an EFT (Electronic Funds Transfer) system like STAR or NYCE, etc. These networks dont provide the additional liability protection offered by Visa. However, the store wont incur the same hefty fee that they will have to pay if you choose credit, so stores like this option. The debit/PIN# is the only option that allows a cash back transaction, and doing it this way avoids ATM fees, so it's a good choice when you do need some cash. Its possible that more people choosing the debit option will equate to lower prices in stores, but theres really no way to predict what stores would do with any extra savingsmost likely, theyll get passed on to the shareholders.</blockquote>

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