Page 48 - Book6E

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While debit cards are similar to credit cards in that they can be used to purchase goods and services electronically, debit cards replace the use of cash or checks. A signature-based or deferred debit card has a Visa or MasterCard logo displayed on the card. These cards are accepted anywhere Visa and MasterCard credit cards are accepted. The purchase amount will be removed from your bank account in two or three days. By contrast, a PIN-based or direct debit card removes a purchase price from your checking account almost immediately. Some banks offer both types of debit cards, whiles other banks combine both kinds of debit functions on the same card.
For example, let’s say your debit card lets you pay by signature or by PIN. When you swipe your card through at the checkout line, you’ll be asked if you want to pay by debit or credit. If you hit “debit,” you’ll need to input your PIN number. If you hit “credit,” you’ll need to sign the sales slip.
Whether you hit “debit” or “credit”, the key thing to remember is that when you pay with a debit card, the payment is pulled directly from your bank account. There’s no pay later option with debit cards. With a debit card you pay now, which means you really have to pay attention to your spending. A debit card is like a live checkbook.
Using Debit, Check and ATM Cards