ATM Card Vs Debit Card Vs Credit Card | Difference between ATM Card, Debit Card And Credit Cards

 

Hi to all , here I am going to tell you all about the differences between ATM Card, Debit Card and Credit Card.

When we open an account in the bank, bank's provides us ATM card, debit card and credit card based on there criteria's and these cards are used either for transact cash from ATM machines or to perform transactions like shopping, bill payments etc.

But there are certain differences among these three cards, which differentiates each from one another.

Table of Contents

ATM Cards

---

ATM card can only be used to withdraw cash from ATM machines.

ATM cards are linked to a bank account to the money that you transacted from the ATM machine will get deduct from bank account.

You can not use ATM cards for online payments.

In ATM cards there will be no interest charges by the bank.

Debit Cards

---

Debit Cards are like ATM cards are linked to a bank account and can be used either to transact cash from ATM machines or to make a online payment like, shopping, booking an online hotel etc.

You can use the debit cards anywhere and any time for your reasons.

Debit cards are multifunctional in terms of usage and all you need is a pin to complete your purchase

Credit Cards

---

In both ATM and Debit cards money is deducted from our bank account but in case of Credit card bank makes a payment for us from bank cash reservoir i.e. money is not deducted from our bank account at the time of any online payment.

Suppose you want to buy something in amazon.com worth $1000, if you use your debit card for the payment of thousand dollars then the money will be deducted from your bank account i.e. your bank account must have thousand dollars before the payment is made but if you use your credit card for this payment of thousand dollars you need not to have $1000 in your bank account i.e. you can buy things worth $1000 even if you have only $10 in your bank account so how it happens.

Firstly you select a product and select credit card as a payment mode, during payment bank gives thousand dollars to the seller from bank's cash reservoir and let you buy the product.

Now you will give thousand dollars back to bank via monthly installments say $100 monthly every month for the next 10 months, but you have to pay more than thousand dollars to the bank, because bank charges an interest on monthly installments.

Insure we can say that credit cards provides instant loans to its users and these cards are going to replace hard cash transactions soon, so better to apply for these cards today.

Debit Card Vs Credit Card

---

Debit Cards	Credit cards
Best for the peopletrying to budget or prevent debt accumulation	Line of credit offering borrowed funds that must be repaired
Linked to a checking account	Help to build your credit history
You need to pay fees when you use your card in atm out of network	It is not liable for more than $50 if card is lost or stolesn
Funds will be directly debited from your bank account	May have to pay fees for foreign transaction, late fees and cash advances
Debit cards can be used anywhere	Credit cards hasva some restrictions to use

Which Card is Best for you ?

It is fully depend on the user, every card have its own pros and cons, users should take these cards only if they have some use, if there is no use and taking for some prestige then you may face some issues.

So before taking the cards you must think, why you want the card and can you afford the cards or not and you can repay the payments on time or not and so many things need to remember before taking a card.

And while taking the cards you need to ask the bank officials about type of card and annual and maintenance charges on the card and some information related to the card and don't leave it to the bank officials, you need to choose your best card for your use.

Conclusion

---

If you have learnt something about the three cards by reading the above information, then like this article and follow us for more articles.