# Cheque Savings or Credit



## Raimensti (Mar 25, 2010)

Hi all,

I have been in Sydney for one month now from the UK, and I still don't understand the cheque, savings or credit!

When I arrived a got a debit card from NAB which was linked to what I term my current account (i.e. where my wages go, and what I spend from most), I also set up an iSaver.

when making purchases from this card, I thought that I shoud not select Credit, as it was not a credit card (UK definition), I should not use Savings, because I did not want money to come out of my iSaver, so I selected Cheque. This did not work.

It turns out that I should have used Savings, and I have continued in that vein.

Anyway, I have just received a new card, which is a Visa debit and NAB informed me to always press Credit (even though this is not a credit card, in terms of the UK definition that I know)!

Can anyone shed any light on what each selection means, and what happens to my money on each one?

Sorry if this sounds obvious, but I have not had anyone able to explain this to me yet!

Thanks all


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## Dolly (Feb 17, 2008)

OK, we were totally confused about it too when we moved over. We have a debit card with Wespac. We use the credit facility for when we buy expensive things, therefore it's insured. Also we use the credit option for ordering things online. I think if you choose the credit option the company you are buying from have to pay a fee...although I'm not sure on that. 

We use the cheque option for smaller amounts. 

We can't use the savings option as it's not a savings account.

Actually I remember asking the person at the bank who was sorting us out how does it work and she really didn't know either. We just worked it out for ourselves!!!!! T'riffic (not!) :lol:

Hope that helps....

Dolly


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## BettinaCC (Jun 24, 2010)

Raimensti said:


> Hi all,
> 
> I have been in Sydney for one month now from the UK, and I still don't understand the cheque, savings or credit!
> 
> ...


When using an eftpos machine a debit card is recognised as a credit card (by some banks). Selecting the credit card function will not incurr any additional fees and charges unless you overdraw the account. NAB website says:

How is the NAB Visa Debit Card used to make purchases?

When the NAB Visa Debit card is used at the point of purchase, the customer will need to press ‘credit’ to make their payment. Using the ‘credit’ button will access the funds in their own account and will also enable.
Hope this helps!


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## Raimensti (Mar 25, 2010)

Thanks for your help Dolly and BettinaCC. I think I just need to forget my definitions as they existed in the UK, and just press credit as they tell me to and leave it at that!

Funny, I have spoken to SO many people about this, and no-one actually knows exactly what each is!

Thanks again though!


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## Johnfromoz (Oct 20, 2010)

Why use a major bank if you can use a building society or a credit union? Very few branches but a worldwide debit/credit card with a decent internet banking with 3-4 times less banking fees. Might be worth considering.


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## kaz101 (Nov 29, 2007)

Johnfromoz said:


> Why use a major bank if you can use a building society or a credit union? Very few branches but a worldwide debit/credit card with a decent internet banking with 3-4 times less banking fees. Might be worth considering.


It depends on where you are and how you do your banking. 
We don't get bank fees because we have a mortgage with the same bank and when we checked into ATM machines for a local credit union they were few and far between in our regional area and using other machines would cost us, so at present we've stayed with a major bank.


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## The Brit in Aus (Apr 25, 2009)

*Debit Cards: Cheque, Savings or Credit*

When using your Debit card in Australia, which button do you press on the payment machine ?

That might sound like a simple question.. *Cheque* if you have a cheque account, *Savings* if you have a saving accounts, and of course *Credit* for a credit card. But NO ! It is not that simple.

The easy answer is to press any one, until you get one that works, or ask your bank to set it up the way you wish.


> eg: We have two savings accounts, with one card. Pressing Debit uses one account, and Cheque uses the other, with Credit also working on the first account.


Why Debit and Credit working on the same account ?

Good question, and the answer is in how, and how much, the Card company gets paid.


If you press Credit the shop pays the card company the same percentage of the transaction amount that they would if you used a credit card.
If you used Debit, they only pay a flat fee the same as normal debit card transactions.

No matter which option you use, the same amount of money still comes out of your normal bank account.

The latest change, and maybe the first of many… ?

Woolworths will no longer allow you to press Credit with a Debit card.

[Link to posters own blog removed by Moderator]


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## The Brit in Aus (Apr 25, 2009)

Dolly said:


> We have a debit card with Wespac. We use the credit facility for when we buy expensive things, therefore it's insured. Also we use the credit option for ordering things online.


I thought that insurance only applied to credit cards.


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## British Kiwi (Jul 5, 2008)

The Brit in Aus said:


> I thought that insurance only applied to credit cards.


My CBA card gives added payment protection if I press the credit button on my debit card. Pressing the credit button also allows larger payments to be made as it accesses your overall credit limit. We found this out after trying to buy furniture with our debit card when we had enough cash. It kept rejecting our card, yet when we pressed the credit button it worked. The savings button doesn't seem to access your savings account, but your main "current" account, though it may be bank dependent. The savings account we have with CBA cannot be accessed using the cards. We have to transfer using internet banking or using the ATMs. 

Oh, and just on Woolworths, I'm pretty sure I used the credit button on our debit card at the weekend with no problem. I just wish they would just get on and force the pin!


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## johny (Nov 1, 2010)

An increasing number of financial institutions now offer debit cards that can be used for transactions through both the Scheme (MasterCard or Visa) and EFTPOS systems. 

When your debit card is swiped, you generally have three options:

1 cheque
2 savings
3 credit

If you press Cheque or Savings, your transaction will be processed through the EFTPOS system after you enter your PIN. This means your bank will pay a flat fee — for example 5 cents — to the retailer’s bank.

However, if you press Credit, the transaction goes through the MasterCard or Visa scheme system. A MasterCard or Visa fee is paid by the retailer’s bank. “Chargeback” protection may also apply — handy when a retailer or manufacturer goes out of business but still owes you a product or money.

According to the Australian Merchants Payments Forum (AMPF), retailers prefer customers to press cheque or savings, as the costs for the retailer are lower (two or three of the largest retailers even receive a fee for EFTPOS transactions). Banks, on the other hand, make more money when the Credit button is pressed.


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## James J. Ko (May 26, 2015)

*SAV or CREDIT*

SAV - Paying by EFTPOS from your savings account. Normally, your debit card should be connected to one of your savings account, not cheque account. (Sometime account type name includes "cheque" does not mean it is a cheque account, but it has a credit function... Not really credit... )
- The payment is debited from your savings account immediately when you make the payment.
- The shop pay a flat fee regardless of the amount... like 5c per transaction. That is why they can provide cash out service simultaneously. 

CREDIT - Paying by Credit card system. 
- The payment will be debited from your savings account when the shop requests (it takes 1~3 days usually) to the bank or credit company such as Visa or Master. Only your available fund is changed (decreased) at that time.
- The shop pay a percentage fee equal to the amount of payment. 


Facts... 
1. We do not normally use CHQ payment through debit card or visa/master debit card.
2. Banks encourages to use more CREDIT function because of their bigger profit.
3. Shops ask to use EFTPOS (SAV) to someone using debit card because of lower transaction fee. 
4. No difference between SAV and CREDIT button for us... 
However, if you need to pay for a big amout, (normally there is some amount limitation per transaction) you can mix two payment methods. ^^

James


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