Cheque, Savings or Credit?

Reading Time: 3 Minutes

“Honey, we’re out of milk and bread”.

Damnit I think, as I pick up the keys to head over to the shops.

Hmm bread, bread… ah ha – gotcha. Now for some milk… oh look there’s thin-cut potato wedges on sale…

Half an hour later, what was initially a two item shopping list turned into a trolley FULL of groceries which we don’t even need (c’mon Babe, those rubber gloves were on sale).

As I approached the counter to pay with my card, the young lady asked:

“Cheque, Savings or Credit?”

Image result for paying for
No one is THIS happy to pay for anything!

Now, like you – I must have heard this hundreds if not thousands of times over the years.

But I’ve never really understood the difference between the three.

“What’s the difference?” I asked.


The difference

Not too much apparently.

You see, after some clever research and a whole bunch of Google searches, I’ve managed to suss it all out.

  • Credit. If you are paying via a credit card, press this button (Duh!), although you can also pay using a debit card that can also be used as a credit card (like a debit Mastercard). The card has to be linked to an account relevant to the option you choose in order for the transaction to work.
  • Cheque. If you select this option, the funds will be taken out of your everyday transaction or cheque account.
  • Savings. If you choose this, the purchase will come out of your savings account, however if there is no savings account linked – then funds are taken out of your everyday transaction account.

So what?

Well, it’s always good to make sure the funds you use for your transaction are withdrawn from the right account.

If your card is linked to multiple accounts, then pressing the right button can make all the difference.

Related image
Hahaha, love this guy.

For example, MrsFrugalSamurai has a debit Mastercard linked to an investment property loan.

I have told her time and time again to not use this card for personal purchases, as it would dilute the purpose of the loan and would have an effect on tax consequences come end-of-year.

But you know, nothing but nothing stands in the way between a good woman and her Louboutin’s.

Ducks to avoid the size 5½ ladies Converse aimed at my HEAD.

Pros and Cons

Here’s a good table courtesy of to sum it up:

Did you know…

Oh and before you go, did you know that which option you select also affects the payment process.

Savings and cheque transactions are done through the instant EFTPOS system, while credit transactions are through VISA/Mastercard – these take longer to process.

However, credit cards have the added benefit of having a “chargeback” protection inbuilt. This makes it easier to claim your monies back if there is a problem with the transaction e.g. refunds.

Although, chargeback protections on credit cards are usually passed onto the merchant.

Chargeback protection from EFTPOS is paid for by the merchant provider (usually a bank), so costs the merchant less.

This is part of why stores impose a “credit card surcharge” or minimum credit card transaction spending limits.

Just another reason to make sure you do select the right option when making your purchases!


Pretty cool right! I for one, wasn’t aware of ANY of this.

Gee thanks TheFrugalSamurai, you’re amazing!

Insert love heart emoji, insert smiley face emoji. 

Hope you enjoyed it guys, have a great week ahead!

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