Take Charge America’s Budget Doctor® has teamed up with First Credit Union to remind members that using debit cards for every day purchases is a smart choice. Your Visa® debit card is welcome at millions of merchant locations worldwide. It is a fast, convenient and safe way to pay. While this card looks similar to a credit card, it acts like a check because the amount is deducted directly from your checking account. You can enjoy all the convenience of using plastic for purchases without incurring debt with a credit card.

When you swipe your First Credit Union Visa® debit card at the checkout, you may be asked whether to process the transaction as a debit or credit. Don’t be confused by the terminology. It refers to how the debit card transaction will be processed. Either way, the purchase amount will be deducted from your checking account. There are advantages to selecting the “credit” option rather than the “debit” option. Here’s an overview of the difference.

Debit or Credit?
If you choose credit, you are opting for a signature-based transaction. Visa® offers a Zero Liability* policy on all signature-based transactions, protecting you against fraud, which is especially important considering your debit card is linked directly to your checking account. Plus, the guidelines for signature-based transactions are more flexible and enable the credit union to provide dispute assistance, if needed.

If you choose debit, you are opting for a PIN-based transaction and you will be required to enter your personal identification number (PIN). PIN-based transactions may not be covered under the Zero Liability* policy. If someone makes an unauthorized purchase with your debit card by entering your PIN, you could be held liable.

Choose credit!
Next time you are asked “debit or credit?” you will know the difference and the advantages of choosing a signature-based transaction rather than a PIN-based transaction so you can make the best choice!

More about Take Charge America
First Credit Union partners with Take Charge America (TCA) to offer members assistance with budgeting, money management and debt repayment. TCA is a non-profit organization dedicated to educating and helping consumers so they can achieve self-reliance, financial stability and financial independence. For more information visit our website at www.FirstCU.coop and search for “Take Charge America.”