ATM Card, Debit Card, Credit Card | The Real Difference

Difference between ATM Card, Debit Card and Credit Card.

       One of the most confusing things around a common persons life is, what is the difference between ATM Cards, Debit Cards and Credit Cards? This isn't a topic to research on but just for a little clearance we have answer for you.

What is the difference between all of those kinds of cards anyway? Let’s take a look:

• An ATM card is usually issued by your financial institution. The card allows you to take money from your savings account or checking account from an ATM, depending on which account it’s linked with. Generally speaking, you can use your ATM card to withdraw money from any ATM machine. But be careful: Some of those withdrawals will cost you. If an ATM machine is not part of your bank’s network, there’s a good chance you’re going to have to pay a fee to access your money. Because The Milford Bank is a member of the All point ATM Network, our customers are able to withdraw money from one of 55,000 machines across the world with no fees. You can find more information about that here.

• A debit card—also known as a check card—is linked with your checking account and generally has a Visa or MasterCard logo on it. As such, you can use these kinds of cards anywhere credit cards are accepted. It’s important you realize that debit cards are not credit cards, as the money that they draw from is the money that is on deposit in your bank account. Because you’re using your own money to make purchases you don’t have to pay interest on the things you buy with your debit card. But it’s important that you remember to keep track of how much money you have in your account because it is possible to spend more money than you have in your accounts, causing you to overdraw your account. .

• A credit card allows you to purchase things with a lender—like American Express, Visa or MasterCard—fronting you the money. The lender charges the merchant a per-dollar percentage on each transaction. They will also charge you interest if you carry a balance on your account. . Depending on your credit history, your credit limit may vary. The better your history, generally speaking, the higher your limit.

CREDITS - 

Pam Reiss