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The Difference Between ATM, Debit and Credit Cards
Do you know the difference between ATM, debit and credit cards? If you answered “No,” you’re not alone. Many people, young and old alike, do not know the differences between these three cards.
Even though they may look the same, these three cards are quite different. Here’s why:
Credit Card
Credit cards let you to borrow money to buy things. You can repay the loan at the end of the month, or extend the loan over a longer time. If you do not pay the money back at the end of the month, you must pay interest. When you use a credit card, you are usually required to show some form of ID, and you must sign a receipt stating that you accept the loan.
ATM Card
An ATM card is linked to your credit union or bank account. You can use this card at an ATM to get cash or deposit money. There are many different ATM networks, such as CO-OP®, Star® and Cirrus®. The back of your ATM card will display a list of networks where your card can be used. Some ATM cards can also be used at Point-of-Sale (POS) terminals located at grocery stores or gas stations.
Debit (Check) Card
Debit cards are used like credit cards, however, you don't have to show a picture ID and there is no PIN to enter. When you use a debit card, the money is taken from your checking account. You can use a debit card at places that do not typically accept checks such as restaurants and movie theatres. Alhough a debit card displays a Visa or Mastercard symbol, it is not a credit card. The logos simply tell you that anyone displaying the logo may accept your debit card as payment.
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