Can I pass my debit card as credit?

“Running it as Credit”: The Truth About Using Your Debit Card

Have you ever been asked at checkout, “Debit or credit?” It seems like a simple question, but it can be surprisingly confusing. You know you’re paying with a debit card, but then the cashier mentions “running it as credit.” What does it all mean, and can you really use your debit card as credit?

The short answer is yes, you can usually use your debit card as credit, but it doesn’t mean you’re actually borrowing money like you would with a credit card. Here’s the breakdown:

Debit vs. Credit Transactions:

• Debit “as debit”: This is the most straightforward method. You swipe your card, enter your PIN, and the funds are immediately deducted from your checking account.
• Debit “as credit”: This option bypasses the need for your PIN. Instead, you sign for the purchase like you would with a credit card. While it feels like a credit transaction, the money is still directly withdrawn from your checking account, typically within a few business days.

Why Choose “Credit”?

• Convenience: You might not remember your PIN, or the terminal might be malfunctioning.
• Higher Purchase Limits: “Credit” transactions sometimes have higher limits than debit transactions, especially for things like hotel reservations or car rentals.
• Rewards Programs: Some banks offer rewards programs for debit card purchases made as “credit.”

Things to Remember:

• No Credit Line: Using your debit card as credit doesn’t grant you a line of credit. The funds are still coming directly from your account.
• Overdraft Risk: If you don’t have sufficient funds when the transaction goes through, you could be hit with overdraft fees.
• Hold on Funds: Some transactions, like hotel stays or car rentals, may place a temporary “hold” on funds in your account, even if you choose the “credit” option.

The Bottom Line:

Using your debit card as credit can be convenient, but it’s important to remember that you’re still spending your own money. It doesn’t provide the same protections or benefits as a true credit card. If you’re looking to build credit or earn rewards, a credit card is a better option.