Complete lack of credit knowledge

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Re: Complete lack of credit knowledge

Postby Whatamuji » Tue Aug 04, 2015 11:57 pm

Gamma wrote:
kcm7 wrote:Some months back I posted about a conversation I overheard -- where a guy said he was building better credit by always carrying a balance (and paying interest) because it makes the banks happier and causes them to give you a higher credit score.

I figure that, if someone is doing something that hurts only themselves, it shouldn't matter. But when I hear them giving other people advice, I really want to step in.

I remember that thread. I agree with what most people said and I'd keep my mouth shut, even if they're giving false information to a stranger. Only time I'd give info would be to friends or known associates if they ask for advise.

Also regarding the guy choosing credit with their debit card, I thought most pos would reject credit tender if it reads it as a debit card. I remember one instance where an old guy was trying to choose credit with his debit card and the pos machine rejected it.

From my experience as a cashier at a fast food chain I can say that the POS terminal will not give an option to run a card as Credit or Debit. It will simply run the card as Credit unless the system is setup to accept payments using PIN (which is how our system was set up post - 2009).
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Re: Complete lack of credit knowledge

Postby Battery111 » Wed Aug 05, 2015 9:43 pm

As I understand things, the option essentially determines who pays the fees. If debit is selected and a pin entered, the bank issuing the card pays a fee to [someone] for processing the transaction. If credit is selected the merchant pays a fee to their processor which is then divided up between the CC network the charge was run on, the bank processing the charge, and the bank issuing the card.

I know for a long time Navy Federal would not allow their debit cards to be run as debit for POS transactions. This was annoying to me for a long time since many terminals would default to debit and make me cancel out to run as credit. I've since learned why NFCU didn't want their cards run as debit (cost them money) and why merchants really wanted the card to run as debit (saved them money).
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