ATM Debit Card : Making Them Work For You

An ATM debit card is very different from an ATM bank card although they appear much the same.  While a bank card is an actual credit card with debit capabilities, an ATM debit card is used to withdraw money from ATMs, as well as make purchases from brick and mortar, and online stores.  With a standard credit card or bank card, money spent on purchases or paying bills is deducted from an available balance determined by the issuing company.

An ATM debit card is very different from an ATM bank card although they appear much the same.  While a bank card is an actual credit card with debit capabilities, an ATM debit card is used to withdraw money from ATMs, as well as make purchases from brick and mortar, and online stores.  With a standard credit card or bank card, money spent on purchases or paying bills is deducted from an available balance determined by the issuing company.

An ATM debit card is very different from an ATM bank card although they appear much the same.  While a bank card is an actual credit card with debit capabilities, an ATM debit card is used to withdraw money from ATMs, as well as make purchases from brick and mortar, and online stores.  With a standard credit card or bank card, money spent on purchases or paying bills is deducted from an available balance determined by the issuing company.[br]

ATM debit card purchases and payments are deducted from your bank account with the money typically deducted from a checking account.  However, some banks and credit unions allow the ATM debit card to be linked to a savings account, or a checking and savings account.  This type of card provides several benefits such as eliminating the need to write checks, which saves money since new checks are not ordered, and hassle by not balancing the checkbook each month.  Because of this, some people call an ATM debit card an electronic check.

With this type of card, you would simply present the card at a merchant’s store or use it online.  Once the monthly bank statement arrives, all transactions for the ATM debit card would be listed.  One of the primary benefits of using an ATM debit card is that some merchants are setup so you could withdraw cash as well.  As an example, when at the grocery store, you realize you need $40 to pick up the dry cleaning and put gas in the car.  With your ATM debit card, you would pay for the food and get money back all in one transaction.[br]

One important note when using an ATM debit card is that depending on the bank or credit union issuing the card, you may be charged transaction fees.  In this case, you can get around paying this fee by knowing how.  Simply have the merchant or vendor run the transaction through as credit instead of debit.  The money spent would still come out of your bank account but you would avoid paying the fee.

To get an ATM debit card, you need to open a new account with a reputable bank or credit union.  In most cases, the card would be offered free for opening the account.  However, some issuing companies offer more than one type of ATM debit card so if this were the case, take time to look at the benefits that each card offers.  If not, you would be provided with the standard card offered by the bank or credit union for all customers.

Another consideration when using an ATM debit card is when withdrawing money, running inquiries, or handling other business at the ATM for the bank or credit union that issued the card, no fees would apply.  On the other hand, if you withdrew month from an ATM associated with a different financial institution, you would be charged a service fee, which would range from $1 to $5.  If you only do this on occasion, it would be no big deal but the goal is to use your own bank or credit union for cash withdrawals.

Since you can use your ATM debit card at local stores or online, it provides a lot of convenience.  Once you start using this type of card instead of checks, you will be hooked.  Finally, if your account has overdraft protection, if you ever needed to make a purchase for more than the available balance, the bank or credit union would approve the transaction.  Although you would be charged a fee, you could still make the required purchase.