Credit Cards v. Debit "Pin" Transactions

[Justice Hog]

So, my GF and I were having a discussion the other day and she tells me that whenever I use my DEBIT CARD for a purchase, I should sign my name, and not use the PIN. She tells me that signing my name (essentially making the transaction look like a credit card transaction) bills the seller where using a PIN actually bills me.

I tell her that I never see a bill when I use a PIN, only the cost of the item. I never see any hidden costs. I said that I only see those types of fees when going for a cash-advance at a bank other than my own.

She stuck to her guns and insisted I was being charged.

So, I did a little research on the internet and, sure enough, learned that some banks out there will actually charge folks for using a PIN for any regular purchase, not just cash advances.

Is this a rip off or what?!?! Next thing you know I'll be charged $5.00 for water or $300 for a re-tread Sean Taylor jersey!

Is anyone out there paying these extra fees? If so, I'd recommend that you abandon your bank and look elsewhere!

[JansenFan]

We used to be, before Wachovia bought Central Fidelity. I personally didn't care. Using it as a credit card is free, so I just used it as a credit card, rather than pay 50 cents per transaction for using it as a debit card.

[Chris Luva Luva]

Shenia makes me select credit. I swear I saw this on another forum. You dont post on GAF do you?

[REDEEMEDSKIN]

JH - The ONLY time you should use the DEBIT portion of your bank-issued "Check card", is when you need to take cash out, and you want to avoid the fees a regular ATM would charge you, in my opinion. (Whenever I use my card at COSTCO, I am charged $0.25 by my bank, since COSTCO only allows debit cards to be used, unless you have AMEX).

At all other times, just use it like you would a creidt card. Sometimes, at some retailers, even when you use it as a credit card, it'll prompt you to enter your PIN. Noramlly, if you just hit "cancel"it will bypass the PIN and be used as a charge card. Of course, you sign to confirm the purchase.

Word to the wise, however, always track these expenses in your check register, or, better yet, pay with cash. Uncontrolled use of a check card can wreak havoc on your budget, if applicable.

[cvillehog]

Stores push the debit option because that shifts the fee from them to you (or to your bank if you have one that doesn't pass that charge on to you).

[Deadskins]

I worked for SunTrust for 7 years, and Bank of America for 8. I saw firsthand how banks changed the way they make their money. It used to be interest on loans. Now it is all fee driven. If they can charge you for a service, they will. Getting all those fees waved was actually a huge perk of working for a bank.

[SkinsChic]

I don't pay a fee for either unless I use an ATM machine somewhere other than my bank and I never do so that's not a problem. Didn't realize other banks make you pay to use thier cards.

[BernieSki]

I also just found out a couple of months ago that I was being charged .25 everytime I put in my PIN number. I called my bank and asked them to wave the charges, they would not, so I moved my accounts to a Credit Union and I no longer have the problem.