Protect Yourself and Learn What is Identity Theft
You’re in line to pay for some gas at the local gas station, and the cashier asks you, “Will this be debit or credit.” You’re telling yourself, “I’m paying with a Visa debit card; does it matter?” The answer is YES. It does matter what you choose when they ask you for debit or credit. There are two reasons why you must choose debit if you are using your debit card to pay for a purchase.
It protects you from identity theft
Studies have shown that you are 17 times more likely to have your identity stolen by making a credit rather than a debit transaction. This is primarily because you must type in your PIN to make the transaction when a credit purchase requires a signature receipt that the store keeps.
Most stores do not display all of your credit card numbers, but I have found that every once in a while, you will see receipts with all your credit card numbers posted on them. Shockingly, those receipts still exist, but they are out there.
It saves the merchant money when you choose debit over credit
You might say, “What do I care if the merchant saves money?” Well, you better care. Who do you think they will pass off that extra expense to? You! When you choose debit, the average transaction costs the merchant about 10 to 20 cents.
When you choose credit, banks charge merchants anywhere from 75 cents to $1.25. Merchants are hoping and praying that you choose debit when you truly are using a debit card, but it doesn’t always happen. The banks are the ones that are being ridiculous about this.
Some banks are charging you a fee to use your debit card as a freakin’ debit card! They WANT you to say “Credit” so that they make more money off of the merchant. And banks wonder why so many people think they are the scum of the earth. I am all about “maximizing the profits of your shareholders,” but the way that you maximize the profits of the shareholders is by taking care of your customers, NOT taking care of your shareholders!
I thought there was a way to use your credit card as a debit card. Most credit cards now have a PIN to allow you to use them in an ATM. But my question is, can you say debt when you have a credit card and then type in the PIN?
If you’ve ever tried this before and it has worked, post a comment here. I don’t know the answer to the question, so I’m asking you. Hopefully, this opens up your eyes more to the importance of that little phrase that we are faced with every day, “Debit or Credit?” It will further protect you from identity theft, AND it will help merchants keep their cost of doing business lower which ultimately allows them to keep the prices of their products lower.
