Having cards, rather than cash in pockets is quite necessary. First off all, cards are easy to carry since they are light and you can swipe or tap the card at any store or ATM according to your convenience to make payment or withdraw cash. It is good to be aware of all the uses and facilities offered by Debit cards and ATM cards. The question is- are the two types of cards- Debit and ATM cards are the same? It is important for you to know that both of these types were created for similar purpose.
There are several features of ATM cards and Debit cards.
- ATM cards are connected to bank accounts and even debit cards are related to bank accounts.
- ATM cards are not accepted everywhere, while Debit cards are usually accepted at all stores.
- Both ATM and Debit cards are used to receive a bill and pay at the same time.
- Both Debit and ATM cards do not charge any interest.
- The best part is both ATM and Debit cards do not affect credit scores.
Unlike a debit card which can be used anywhere, an ATM card can only be used at the ATMs. There is a big difference between a debit card and ATM card. Follow the explanation below to learn more about it.
ATM Card
ATM cards can be used only at ATMs. These types of cards are used to withdraw cash that are there in your savings accounts of different banks. If you do not have an ATM card, it is advisable that you get one.
This type of card does not help you to “float” funds. This means that if you are using the card, money will be debited in real-time and at the exact moment similar to accessing the cash.
There are two types of fees involved with ATM cards. Most of the cash withdrawals always come with a cost. The first fee is paid by the financial institution and the second type of fee is paid by the owner of the ATM machine, if the bank and the ATM owner are not the same.
Debit Cards
Using a debit card means you can use the card anywhere, but for the same a minimum deposit in your bank account is necessary. If you do not have access to any kind of credit, you can still enjoy getting rewards and other facilities of paying through a credit card via a debit card.
Having a debit card means you will require a PIN, personalized identification number, to complete your purchase transaction. The PIN is usually a 4-digit code that you should memorize.
Debit cards are tied up with checking accounts. This means once you use the debit card, funds will get deducted from your bank account.
Using a debit card will help you know whether your purchase is approved by the bank with which you have your savings account. If the bank does not approve the purchase, the cashier will let you know that you do not have authorization for the purchase. Another reason why you should link your debit card to any checking account is for overdraft protection.
Although, you can use your debit card as credit card and earn reward points or cashback, you should know that you are still using your own money to make pay for the purchase made, thus it saves you from the worry of spending extra. Your spends are under control while you are still eligible to earn rewards and cash back.
Therefore, it is important to mark the difference between ATM card and debit card, doing it will help you maximize your benefits with optimum usage of the cards.
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