- One is considered “on-line” where you use either an ATM or a point-of-sale machine and enter your PIN. In these transactions, the funds are usually automatically deducted from your account. Some stores allow you to get extra cash from your account when you buy something with your debit card through a point-of-sale terminal.
- The second is considered “off-line”. If your debit card carries a logo from an international credit card network you can use your debit card anywhere that credit card is accepted with a signature. These may have a delay time before the money is retrieved from your account.
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What are ATM and Debit cards? An ATM card is a plastic card you can use to access your cash. It allows you to do all your banking at a bank machine (also called an Automatic Teller Machine or ATM). This includes getting cash, depositing money, checking account balances, and receiving a copy of your statement --all electronically. To use the ATM machine, you need your ATM card and a password, called a Personal Identification Number (or PIN). Debit cards and ATM cards look more or less the same, but debit cards can also be used at retailers to make purchases. Debit cards issued by banks or credit unions will generally have a logo (for example Visa or MasterCard.) These debit cards will be accepted anywhere that accepts credit cards. Get more information on debit cards. What are the benefits of having an ATM or debit card? ATM and debit cards give you a convenient way to get cash, make deposits, check how much money you have in your account and make purchases. ATMs make cash available 24 hours a day, seven days a week at many locations. You can use ATMs that are located at all of your bank's locations, generally at no cost. You can also use your ATM card at other banks, but there are often fees associated with using an ATM that is not owned by your bank. In fact, you may be charged two fees: one from the owner of the ATM and one from your bank. Check out whether your bank charges a fee for using another bank's ATM. Debit cards can be used just like ATM cards. They also allow you to make purchases at retail stores.There are two different types of transactions you will be able to make with the debit card: You have to manage your money carefully when using a debit card to make sure you don’t overdraw the money from your account. What are the costs of having an ATM or debit card? Banks may charge a fee for using an ATM or debit card, so you'll want to ask about their charges. Many banks will not charge a fee to use ATMs at their bank locations, but you can get charged a dollar or two if you use an ATM somewhere else. If you use ATMs a lot, the fees can add up quickly. Look for ways to avoid charges by using your own bank's ATMs or getting extra cash when you buy things with your ATM card. Debit cards will not often carry a fee for use when used to make purchases. However, if you don’t manage your funds properly you may overdraw your account, which generally carry high fees ($20 - $30 per overdraw). How do I get an ATM or debit card? Most banks and credit unions offer ATM and debit cards. They are usually connected to a checking or savings account. When you go to a bank to open an account, you may be given an ATM card automatically but you may need to request a debit card separately. Ask your bank or credit union about how to get an ATM or debit card. |
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