Debit vs. Credit?

April 3rd, 2012

At the check-out counter, debit wins.

By: Katie Jackson, Client Service Specialist

We’ve all been at the check-out counter of our favorite grocer or retailer and waited for the proverbial question: Paper or plastic? Debit or credit? Unfortunately, many people give more thought to choosing paper over plastic than they do the choice involving a financial transaction.

There is a difference between a debit and a credit transaction. It may be the exact same card you use for both, but the button you press (credit or debit) can make a difference in many ways. A wise consumer always chooses debit over credit.

Debit is Safer
A debit transaction is safer because of the PIN (personal identification number) required for each transaction.

Fraud is a concern for everyone. By using an effective PIN, you take one opportunity for fraud away from criminals. Signatures can be easily forged and can take days or weeks to identify. A safely managed PIN however, can protect you from a lost or stolen card immediately.

Adams Dairy Bank tries to protect its customers from fraudulent card use by putting restrictions on signature-based transactions that take place outside of Missouri and adjoining states. By always using your debit card you ensure that your transaction will be accepted wherever you travel.

If you will be traveling out of state and think you may need to use your debit card for a credit transaction (e.g. at restaurants), please call us so we can activate that option on your account.

A debit card with a unique PIN not shared with others can be difficult, if not impossible, for a criminal to use. Take additional precautions by never writing down your PIN, and by advising your bank if you suspect any unauthorized use of your card.

Additional Convenience
Debit provides the additional convenience of allowing you access to cash from your account immediately. Today’s consumers use cashback with debit transactions instead of going to the bank or finding an ATM.

Many users of debit transactions maintain their account balances in places other than a checkbook. And, because debits are recorded at the time of transaction, up-to-the-minute activity recorded on your debit card receipt can prevent costly overdrafts and help you better understand your balance at all times.

The Right Thing to Do
We encourage our customers to make a habit of choosing debit over credit. Debit provides a safer, more convenient method of banking. Providing safe, convenient banking services is what we do at Adams Dairy Bank.