How to Use a Debit Card at an ATM
An ATM allows you to withdraw cash, make deposits, view your balance, and more. Except for deposits and withdrawals, you can also accomplish most of those tasks online. Here are some things to remember: Once you get the hang of using ATMs, you can use them for more than just cash withdrawals. You can deposit checks and transfer money between accounts, and some ATMs may even allow you to talk with a customer service representative via video conference.
Not Just ATM Cards
Several different types of cards are available, so you may be confused about which cards work at ATMs. Those cards go by a variety of names, and almost all of them allow you to withdraw cash. However, the cost of using those cards varies, and the additional features are different. They include:
ATM cards: These pull funds from your account in a bank or credit union. The account might be a savings account or a checking account. Almost nobody issues an ATM-only card anymore. They’re almost all debit cards that you can use at retailers, online, and just about anywhere you’d use a credit card. Debit cards and check cards: They pull funds from a checking account or a money market account (but generally not savings accounts). They can be used to withdraw cash and make purchases. Prepaid debit cards: These can be loaded with funds when you add money to the card, and you can withdraw cash and use the card for purchases. Prepaid cards are an option for people who don’t have a bank account due to the distrust of banks or an inability to open an account. Credit cards: They allow you to borrow money, but you often have to pay high interest rates on your loan balance. Credit cards can be used for cash advances, but you’ll pay even higher fees and interest rates to do so.
Words to the Wise
Be careful how you use your cards, and follow these guidelines: Know your balance: Before you make a withdrawal, make sure you have funds available in your account. Even if you recently deposited funds, those funds might not yet be available for spending. Know your bank’s policies, and check your balance online or at the ATM to avoid additional overdraft fees. Monitor purchases and spending: A debit card is great for making cash withdrawals. You can also make everyday purchases and shop online, but it might be best to use a credit card for those tasks. Your debit card is directly linked to your bank account, so any fraud or errors will drain your checking account. A credit card creates a buffer, giving you more time to fix any problems. Choose ATMs wisely: The best place to use an ATM is inside a locked or secured building because the machines are less vulnerable to tampering. Bank branch lobbies are a good example of these locations. If using ATMs on the street, pay especially close attention to any potential skimming devices and individuals watching you.
