Debit Cards
Debit cards are like ATM cards in that they can be used at ATM machines to deposit money, withdrawal money, and check the balance of your accounts. Like ATM cards, debit cards have a PIN associated with them that you must know in order to use the card.
Debit cards have additional functions that ATM cards do not have. For instance, a debit card can be used to make POS, or Point of Sale, purchases at most businesses. POS purchases are made at small kiosks near the cash register. When your purchase has been rung up, you swipe your debit card at the kiosk and follow the prompts on the kiosk to complete the transaction; the prompts normally ask you to enter your PIN and authorize the purchase.
Some banks offer debit cards to customers that are backed by credit card companies, MasterCard and Visa. These debit cards can be used anywhere credit cards are accepted. Debit cards are very convenient; so much so that they have changed the way people make purchases.
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| The convenience of debit cards! |
Similarities and Differences: ATM Cards vs. Debit Cards
It is important to understand the similarities and differences between ATM cards and debit cards.
Similarities:
- ATM cards and debit cards both require you to have money in your account in order to access the funds with the card.
- ATM cards and debit cards can be used at ATM machines to perform basic banking transactions.
- Customers must use caution when using both ATM cards and debit cards - safeguarding both their card and their PIN in an effort to protect their accounts/money. Addtional precautions are necessary when using debit cards due to the sheer number of locations that a debit card can be used at as well as the manner in which the money is processed (debit vs. credit). For instance, imagine your credit card-backed debit card was stolen. Because the card can be used as a credit card (credit card transactions do not require a PIN), the individual who stole the card can use the card to make purchases as long as the transactions are processed as credit card transactions and not debit card (PIN-required) transactions.
Differences:
- ATM cards can only be used at ATM machines whereas debit cards can be used at most businesses.
Further Your Understanding<
Learn more about Debit Card Fraud so as to protect yourself:
