Debit or Credit

Filed under: Personal Finance, School Age, Young Adults, Adults, Retirees

     You can use your Earthmover Check Card for purchases. The amount will be deducted conveniently from your checking account. When you present your Check Card for payment, the cashier or the swipe machine will ask you to choose "debit or credit" before the transaction can be completed. Depending on your answer, the transaction will be carried out in one of two ways:

     If you choose "debit" Your purchase will be completed through the ATM network. So, you will be asked to enter your personal identification number (PIN). The amount will be deducted almost immediately from your account. The transaction is considered an ATM withdrawal and a surcharge or fee may result. The transaction counts as one of your five free ATM withdrawals per month at a non-Earthmover machine.

     If you choose "credit" Your purchase will be completed through the credit card network. You will be asked to sign a receipt just as when using a traditional credit card to verify your identity. The amount will immediately be subtracted from the amount you have available for checks to clear against. The transaction will not count as an ATM withdrawal at a non-Earthmover machine. An easy way to remember is "Sign you save, PIN you pay."

     Exceptions Some stores, such as Aldi and Sam’s Club, do not accept Visa credit cards. They do, however, accept ATM cards for payment. Since your Earthmover Check Card is both your ATM card and your debit card, you are only able to use the ATM withdrawal function in those stores. So, your PIN is required at Aldi, Sam’s Club, and any other stores that will accept ATM cards but won’t accept Visa.

     From the credit union’s standpoint, we prefer that you choose "credit" because it doesn’t cost us anything. In fact, it generates a little income. Plus, choosing credit can help you avoid ATM fees and surcharges. Whichever you choose, the most important thing for you to remember is to write the amount down in your checkbook register.

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