You’ve most likely heard of both ATM and debit cards, but did you know that the two terms are not interchangeable? Come to think of it, do you even know which type of card you have in your wallet? While many people think an ATM card and a debit card are one and the same, there are actually several differences between these two types of cards.
How are ATM cards and debit cards similar?
As you may know, ATM stands for “Automated Teller Machine”. ATMs are large, stand-alone computers that allow you to withdraw and deposit money. They’re frequently found in the lobbies and drive-up lanes of banks and credit unions, and they can often be found in many other places such as convenience stores, coffee shops, casinos, and restaurants. Many ATMs can process additional transactions as well, allowing account holders to do such things as check their balances or transfer money.
To use an ATM, you need a card that’s issued to you by your financial institution. This can take the form of an ATM card, or a debit card. You simply insert the card into a slot in the machine and type in your PIN (also known as your “Personal Identification Number”) to access your account and conduct transactions.
Both ATM and debit cards are tied directly to your bank account, so any cash withdrawals you make at an ATM are automatically debited from your account. It’s important to keep track of how much money you have in your accounts so you can avoid overdrafts and the fees that come with them.
Speaking of fees, it’s important to keep in mind that there could be fees if you use a “foreign” ATM (one that’s outside of your bank’s network). For this reason, it’s a good idea to know which ATMs are considered “in-network”, and understand which fees your bank could charge for using out-of-network ATMs. And know that in addition to any fees charged by your bank for using a foreign ATM, you could incur charges from the financial institution who operates the out-of-network ATM as well.
How are ATM cards and debit cards different?
Don’t know which type of card you have in your wallet? Take a look at the front of it. If you see a credit card logo (like the Visa® or Mastercard® symbol) on your bank card, it’s safe to say it’s a debit card. If you don’t see a credit card logo on your card, you can assume you have an ATM card.
ATM cards can be tied to either a checking or a savings account, and they can only be used to access ATMs. Debit cards, on the other hand, must be tied to a checking account. With a debit card, you can conduct bank transactions at an ATM just as you can with an ATM card, but you can also use your debit card to make purchases. When you use a debit card to make purchases, it can be thought of as an alternative to writing checks. Any merchant that accepts the credit card featured on the front of your card will accept your debit card for payment as well.
One thing to keep in mind when using a debit card at a checkout counter, is that you may be asked whether you’d like to use your debit card as “credit or debit”. What this means is that in-store debit card purchases can be processed as either “PIN” or “signature” transactions.
A signature transaction is a bit like paying with a credit card. The merchant will process the transaction and you’ll be required to sign for the purchase. The funds will ultimately come out of your bank account, but the transaction itself will be authorized by a credit card company. This is why a credit card company logo appears on the front of a debit card, and why “signature” transactions are commonly referred to as “credit” transactions. You can also use debit cards to make purchases online, in the same way you would use a credit card. Even though you don’t physically “sign” for an online debit card purchase, it would still be considered a “signature” transaction.
An alternative to a signature transaction is a “PIN” transaction. With a PIN transaction, you must enter your debit card PIN (just like you do when you’re conducting a transaction at an ATM), and the money for the purchase is immediately deducted from your bank account. When you choose the “PIN” option at qualifying merchants, you can also withdraw cash at the same time you make a purchase. This is known as “cash back”. However, be aware that some banks may charge a fee for cash back transactions, much like using a foreign ATM.
And, for a look at how debit cards differ from credit cards, visit https://www.bankfive.com/Resources/Learning/Blog/December-2017/Knowing-the-Difference-between-Credit-and-Debit-Ca
How are ATM cards and debit cards similar?
As you may know, ATM stands for “Automated Teller Machine”. ATMs are large, stand-alone computers that allow you to withdraw and deposit money. They’re frequently found in the lobbies and drive-up lanes of banks and credit unions, and they can often be found in many other places such as convenience stores, coffee shops, casinos, and restaurants. Many ATMs can process additional transactions as well, allowing account holders to do such things as check their balances or transfer money.
To use an ATM, you need a card that’s issued to you by your financial institution. This can take the form of an ATM card, or a debit card. You simply insert the card into a slot in the machine and type in your PIN (also known as your “Personal Identification Number”) to access your account and conduct transactions.
Both ATM and debit cards are tied directly to your bank account, so any cash withdrawals you make at an ATM are automatically debited from your account. It’s important to keep track of how much money you have in your accounts so you can avoid overdrafts and the fees that come with them.
Speaking of fees, it’s important to keep in mind that there could be fees if you use a “foreign” ATM (one that’s outside of your bank’s network). For this reason, it’s a good idea to know which ATMs are considered “in-network”, and understand which fees your bank could charge for using out-of-network ATMs. And know that in addition to any fees charged by your bank for using a foreign ATM, you could incur charges from the financial institution who operates the out-of-network ATM as well.
How are ATM cards and debit cards different?
Don’t know which type of card you have in your wallet? Take a look at the front of it. If you see a credit card logo (like the Visa® or Mastercard® symbol) on your bank card, it’s safe to say it’s a debit card. If you don’t see a credit card logo on your card, you can assume you have an ATM card.
ATM cards can be tied to either a checking or a savings account, and they can only be used to access ATMs. Debit cards, on the other hand, must be tied to a checking account. With a debit card, you can conduct bank transactions at an ATM just as you can with an ATM card, but you can also use your debit card to make purchases. When you use a debit card to make purchases, it can be thought of as an alternative to writing checks. Any merchant that accepts the credit card featured on the front of your card will accept your debit card for payment as well.
One thing to keep in mind when using a debit card at a checkout counter, is that you may be asked whether you’d like to use your debit card as “credit or debit”. What this means is that in-store debit card purchases can be processed as either “PIN” or “signature” transactions.
A signature transaction is a bit like paying with a credit card. The merchant will process the transaction and you’ll be required to sign for the purchase. The funds will ultimately come out of your bank account, but the transaction itself will be authorized by a credit card company. This is why a credit card company logo appears on the front of a debit card, and why “signature” transactions are commonly referred to as “credit” transactions. You can also use debit cards to make purchases online, in the same way you would use a credit card. Even though you don’t physically “sign” for an online debit card purchase, it would still be considered a “signature” transaction.
An alternative to a signature transaction is a “PIN” transaction. With a PIN transaction, you must enter your debit card PIN (just like you do when you’re conducting a transaction at an ATM), and the money for the purchase is immediately deducted from your bank account. When you choose the “PIN” option at qualifying merchants, you can also withdraw cash at the same time you make a purchase. This is known as “cash back”. However, be aware that some banks may charge a fee for cash back transactions, much like using a foreign ATM.
And, for a look at how debit cards differ from credit cards, visit https://www.bankfive.com/Resources/Learning/Blog/December-2017/Knowing-the-Difference-between-Credit-and-Debit-Ca