Credit cards are very much different from their counterpart, debit cards, regardless of how identical they look. When initiating a purchase using a debit card, the money is withdrawn from your bank account. However, when making a purchase using a debit card, the money is lent from your card issuer, who usually sets a limit. Sometimes, the urge to try something new may arise, prompting you to attempt using your debit card as credit even with inadequate cash. But come to think of it, is this possible?
It is impossible to use your debit card as a credit when it is short of cash. If you attempt to, your card will be rejected due to insufficient funds. It is like trying to purchase a car when you have no dime on you.
There are several things you need to learn about debit and credit cards, especially when it comes to interchanging them. While debit and a credit card are two different cards, they can be used interchangeably. That simply means you can use your debit card as a credit at check out, and some companies may allow you to use credit cards as debit. However, if you get wise and attempt to use your debit card as credit even when you have inadequate funds, you’ll be left embarrassed. In this article, we’ll be looking at if such an act is possible or not.
Can You Use Your Debit Card as Credit With Insufficient Funds?
A debit card and a credit card works in different ways, and they are also meant for different purposes. Of course, you can use a credit card to pay for almost all things you would use a debit card to pay for; however, that doesn’t make them identical. A debit card is merged to existing money, that is, the cash you have in your bank account. When you buy a product using your debit card, the money for the purchase is withdrawn from your account balance.
On the flip side, a credit card allows you to make purchases on credit; this is quite impossible with a debit card. When you buy a product with a credit card, the funds for the purchase are being borrowed from a credit card lender. The credit card lender usually sets a credit limit based on your credit report and gross annual income level. Most times, you can use a debit card as a credit – there is no issue in doing that. However, doing so will alter how the transaction you make is processed.
For instance, when you make purchases at a store, you’ll be asked if you want to use debit or credit on your debit card. Choosing the credit option doesn’t magically turn your debit card into a credit card. Instead, when you select credit, the transaction happens offline, and it usually takes around two days for the transaction to be processed and approved after which the charges are removed from your account. However, If you had selected debit rather than credit, the transaction would have happened online, and you’ll be charged instantly.
Sometimes, you may attempt to play smart by using your debit card as a credit card even when you are quite aware that it reeks of inadequate funds. Sorry to break it to you, but it is impossible to do so. If you go ahead and give it a try, your card will be declined because you lack adequate funds to make the purchase. It is like trying to purchase a home appliance when you have an available balance of zero. How would such work out? You need to have money on your debit card to make purchases.
What Is the Result of Using a Debit Card as Credit?
Credit cards and debit cards have identical features. However, the difference between the two cards is where the money is withdrawn from when a purchase is initiated. When you utilize a debit card, the funds are taken out of your account, but when you use a debit card, the fund is borrowed from the card issuer. Sometimes, people use a debit cards as credit, making us ask ourselves, “What happens when you use a debit card as credit?”
When you use a debit card as a credit, the transaction is processed offline. It is processed and approved after the merchant settles the purchase with the credit card processor. This usually takes two to three days.
In most scenarios, it is possible to use debit cards as credit, provided you have adequate funds in your account. When you do so, the transaction will take place offline, and it will be displayed on your account balance after two to three days. According to Master Card, if you perform the transaction using your debit card, it’ll be processed and approved instantly. In that case, such a transaction is made online, authorized by inputting your pin.
Some people decide to use their debit cards as credit when purchasing an item because it saves them the stress of inputting their password. These people believe that taking such a path creates additional security against unscrupulous persons who might want to memorize their pin for fraudulent reasons. While it is understandable why these people do this, you can also protect your pin by being aware of who is around you rather than copying such an act.
Another way to protect your pin is by covering the keypads while inputting the digits. Of course, this may seem unnecessary, but you never know who is paying attention. It is worthy to note that debit card fraud is quite rampant, so ensure you do your best to take necessary precautions.
Conclusion:
You can use your debit cards as credit at check out. However, you should note that, doing so will be impossible if you lack money in your account. Regardless of if you use this card as credit or debit, have it in mind that the funds will be taken from your checking account.
In addition, you can use your debit card to make a payment processed as credit, however, it is impossible to use your debit card for credit in most cases.
