"CreditShout is a community of personal finance experts dedicated to helping you save money and make smart financial decisions. Learn how to master your credit card rewards, improve your credit score and start eliminating your debt."
Debit cards are one of the most widely used banking cards in all of the world.Nearly every local and national banks offer debit cards to their customers.These debit cards are associated to the customer’s banking account, often a checking account.While the popularity of online banking has continued to grow, debit cards are still used by a lot of people and more than likely, you have a few yourself.
Every debit card has a PIN.You need this PIN to be able to go to the ATM to get money out.If you’re shopping and use your debit card to pay, it will ask you do you want to use debit or credit.If you choose to pay by debit, it will usually then ask you for your PIN.If you use credit, you’re not asked for a PIN.
What’s The Difference Between Credit and Debit?
When you use a credit card to buy something, you’re effectively borrowing the money for your purchase (at zero interest if you pay your card off in full every month).When you use a debit card, you’re simply paying for your purchase with money from a linked bank account.
Credit cards have some benefits that debit cards do not, like boosting your credit score, as long as you’re making all your payments on time.If you’re using your debit card on a regular basis, this is not influencing your credit score.It doesn’t matter if you’re choosing credit or not, a debit card doesn’t report your credit.
A huge difference we see with debit cards and credit cards is the fact that credit cards can have a lot of perks. For example, your credit card may earn cash back, your debit card will never earn cash back or any other reward. Some credit cards have a wide range of rewards you can use to earn additional perks for using the credit card. Your debit card, sorry, no additional rewards for you.
Related Reading: How Much Cash Can You Withdraw From An ATM
Can I Use My Debit Card As Credit?
As we said earlier, when you make a purchase in a store with a debit card, the clerk or payment terminal may ask you whether you want to use the card as “credit” or “debit.”
If you choose “debit,” you’ll usually be asked to enter your PIN number, just as you would at an ATM. The transaction will generally clear right away, with the funds withdrawn from your bank account to pay the merchant.
Now, what happens when you choose “credit” instead, you generally won’t be asked to enter your PIN, but you may be asked to sign a receipt, just as you would with a traditional credit card. The transaction is then run through a credit card network.
If you forget your PIN or don’t know what it is, there is a way to continue to use your card until you’re able to reset it. Despite the use of the term “credit,” the money is still withdrawn from your bank account.
It can take longer for the transactions to clear when the card is run as credit versus debit, in some scenarios the merchant may have to pay a slightly higher fee. On the other hand, some debit cards offer additional fraud and purchase protection features if you choose “credit” and sign for your purchases. You may find that you’re triggering a few of these from time to time.
Both Offline And Online Purchases
As long as you know your debit card number and your 3 digit number on the back, you can use your debit card to make online purchases. When purchasing items online, rarely will you ever be asked for a PIN.
If you’re paying utility bills, such as an electric bill or internet bill, you can use your debit card without the PIN. Once again, all you need is your card number and the 3 digit security code on the back.
Now, you may be asked to enter the last 4 digits of your social security number or your billing address. You may also be asked to enter your address or phone number. Even so, as long as you have this information on you, you’ll be able to complete your purchase either offline or online.
This is why it’s important to never tell anyone your personal information. A lot of people use online email and social media to share personal data. This is very dangerous as it doesn’t take much for someone to get your personal information. You want to make sure you’re always cautious about your personal info.
Just Get The Cash
Since debit cards are associated to a customer’s checking account, they don’t need a PIN to get money. You can simply go to the bank to get cash. You can write a check, make it to “cash,” sign it and you’ll be able to get money out of your account.
You Can Get A Prepaid Card
If you need to add money to a card and you can’t use your credit card, you can always add money to a prepaid card. It’s super simple and you can purchase prepaid cards from a wide range of locations. One of those locations is your local Wal-Mart.
Now, prepaid cards cost a few dollars unless you already have one. If you do, you can just add money to that. If you don’t have one, you’ll need to buy one and bring it to the register. From there, you can pay the clerk to add money to your prepaid card. Once that’s done, just activate it and you can now spend the money.
As you can see, there’s a few ways to get cash with your debit card without having the PIN. If you don’t have a PIN, go ahead and request one today. It will take 7-10 business days to arrive via the mail, most banking companies won’t give your PIN over the phone or online. You’ll need to contact them directly to ask for a PIN.
