What is the difference between Credit and Debit?

I have a Visa Debit card from Bank of America, and some businesses ask me, "Would you like to use it as credit or as debit?" I really don't understand that. To me, it's the same thing: the money is being taken out of my checking account. The only difference is that if I use Debit, I need to put in my PIN number; and if I use Credit, I have to sign for it.





But what is the difference between them?|||Saying credit means it goes through the Visa system, if you go credit you are using it as an ATM. Going through the Visa system you get the Visa protection if something goes wrong with the transaction.





Edit:


found this thought it may help virtually what I said but better written.


http://www.daveramsey.com/etc/askdave/in鈥?/a>|||Basically credit is that a company lends you money to pay for your purchase which is why they then charge you interest for using their money.. Debit is money that is taken from an account that you own and have money in already. The pin is to help protect your account from fraudulent use.