ATM Bank Card : Will It Work For You

The right ATM bank card would prove to be highly beneficial whereas the wrong card could end up costing you money and a lot of frustration.  This type of card is also referred to as a cash card, bank card, or just ATM card but regardless, they all work the same way.  The ATM bank card is not issued by a credit card company but by a bank or credit union.  However, just as with credit card companies, banks and credit unions offer a variety of different cards, each with unique services, rates, and features.

The right ATM bank card would prove to be highly beneficial whereas the wrong card could end up costing you money and a lot of frustration.  This type of card is also referred to as a cash card, bank card, or just ATM card but regardless, they all work the same way.  The ATM bank card is not issued by a credit card company but by a bank or credit union.  However, just as with credit card companies, banks and credit unions offer a variety of different cards, each with unique services, rates, and features.

The primary purpose of the ATM bank card is to withdraw money from an ATM, make deposits, and check on bank account balances.  In addition, sometimes an ATM bank card could be used to change personal information, choose a different PIN, etc.  The best option when using a card such as this is to handle all transactions at the bank or credit union that issued the card in that this would provide more options and you would not be charged.  You can use an ATM bank card at other financial institutions but it would need to have an ATM that supports your type of card and there would be applicable fees.

Another benefit of using an ATM bank card is that you could make purchases at brick and mortar, as well as online stores.  In other words, this type of card is an actual credit card but one with ATM capabilities.  When a purchase is made with an ATM bank card, the amount of the purchase is deducted from the available balance, plus applicable fees.[br]

Let us say you had a card with a $1,000 credit line and currently, you have $700 available.  If you were to purchase a dress for $100, your available balance would go down to $600 but then if the full balance were not paid off on the due date, interest would apply.  Keep in mind that the interest is what kills most people so when you look for the best ATM bank card, knowing the interest being charged is essential.

When choosing the best ATM bank card, you need to identify certain things, which would be provided in what is called the Schumer Box, which is displayed on all card applications.  The first thing listed would be the Annual Percentage Rate or APR.  This is critical information, which is the interest rate you would pay for all purchases made using the card.

The second box for your ATM bank card is “other APRs”.  This would include interest charged for making a balance transfer, taking out cash advances, and even defaulting on the card.  Typically, the other APRs are high so you want to pay close attention and compare options when choosing an ATM bank card.  The Schumer Box would also list Variable Rate Information, showing both the standard APR for purchases, which would vary every month.  This is based on the Prime Rate plus interest that would range from 5.99% to 13.99%.

Next, the Schumer Box for your ATM bank card would provide information for the Grace Period for payments, which is typically 25 days if the full balance is paid.  Then there is the “Method of Computing the Balance for Purchases”.  For this, you would learn the Average Daily Balance that includes any new purchases made.  Finally, the Schumer Box would tell you if your ATM bank card charges an annual fee, which applies to some cards and not for others.