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- If you'd like access to your account, some bank accounts have a debit card or ATM card.
- ATM cards are solely for ATM access, but debit cards let you purchase items.
- When you are managing a bank account with a card, be mindful of overdrawing or potential ATM fees.
- Compare the best free checking accounts.
Introduction
If you're looking for a bank account that provides easy access to your money, you'll often find many options, such as a debit card or ATM card.
While a debit card provides ATM access, it's not exclusively the same as an ATM card. By knowing the differences between these two cards, you'll have a better understanding of your card's limitations and how to manage your account.
Here's what you should know about debit cards and ATM cards, so you know exactly what you're getting before opening an account.
Overview of ATM and debit cards
While ATM cards and debit cards provide access to your bank account, their functionality is different. ATM cards have more limitations to how they can be used.
- An ATM card lets you withdraw cash from your bank account at an ATM machine.
- A debit card lets you withdraw cash from an ATM machine and purchase items in-store and online.
What is an ATM card?
An ATM card only provides ATM access to your bank account. You'll be able to withdraw money from an ATM, check your account balance, or transfer money to different bank accounts.
ATM cards are often attached to money market accounts. However, some financial institutions also offer an ATM card with a checking account or savings account.
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What is a debit card?
A debit card lets you pull money from your bank account and make purchases at stores, restaurants, and online. Some places even allow you to get "cash back" from your account while making another purchase, saving you a trip to the bank or ATM.
Be mindful that debit cards have daily purchase limits. Daily purchase limits put a cap on the amount you can spend when using a debit card.
Debit cards are usually included with checking accounts. However, some financial institutions also offer a debit card with a money market or savings account.
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When to use a debit card vs. ATM card
Erika Safran, CFP® and principal at Safran Wealth Advisors, LLC, says a bank account with a card may be ideal for someone young or who doesn't have a credit card yet.
An ATM card may be appropriate for someone who doesn't need to make purchases with their card, but wants access to their bank accounts and the ability to withdraw cash. A debit card will allow you to spend money, withdraw cash, manage your accounts, and avoid racking up a balance that will need to be repaid like with a credit card.
Safran says there are several bank fees to be mindful of before getting a bank account with a card, however, like monthly service fees or out-of-network ATM fees.
If you can purchase items with your card, Safran says it's also important to be mindful of overdrawing from the account. You could have to pay overdraft fees, which may cost up to $35 per overdraft.
"You're in a hurry, or need the cash, or you're not paying attention. It's possible you may take out more than you have and end up owing more than you took out," Safran adds.
Security considerations
You will need to choose a PIN when setting up your debit card or ATM card. This four-digit number is used to verify every transaction, whether at an ATM or a merchant. It's important to choose a PIN that's unpredictable (avoid birthdays or street addresses), memorize it, and keep it private.
Tips for secure transactions
Use bank-owned ATMs and only swipe your card at trusted merchants whenever possible to avoid debit card fraud.
Monitor your bank statements regularly to identify any transactions you didn't make. The sooner you report fraudulent purchases or withdrawals to your bank, the less you will be liable for.
FAQs
What is the main difference between an ATM card and a debit card?
The primary distinction between an ATM card and a debit card is what it can be used for. While both may be connected to a checking account or money market account, only a debit card can be used to make point-of-sale purchases. You can withdraw cash from an ATM with either type of card, but a debit card may also allow you to get cash back from a merchant while making a purchase.
Can I use my ATM card for online purchases?
Generally ATM cards can only be used at ATMs to withdraw cash and check an account balance. Online and in-person purchases can be made with a debit card.
Are there transaction fees associated with these cards?
You may incur a fee for using an ATM or debit card to withdraw cash from an ATM outside of your bank's network. If you are making a point-of-sale purchase, typically the business will pay the transaction fee charged by the debit card issuer.
How do I choose between an ATM card and a debit card?
It depends on whether you want to make purchases with the card. A debit card has the same cash withdrawal capabilities as an ATM card, plus gives you the ability to make in-store and online purchases.
Is one card safer to use than the other?
Both types of cards have security measures. Because a debit card can be used in more situations, it comes with more extensive liability policies to protect you and your money from potential fraud.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circ*mstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
- Bank accounts
- Savings and CD rate trends
- Budgeting
- Saving
- How banks operate
EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
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