Can you use the atm with a credit card

What is an ATM card?

ATMs or Automated Teller Machines are mostly used to withdraw cash. If a bank allows it, you can also make deposits into an account during and outside regular business banking hours. This card can only be used at ATMs and requires a PIN (Personal Identification Number).

All withdrawals using an ATM card are immediately deducted from the customer’s account.

If a card is lost or stolen and the consumer reports it before any fraudulent charges are made, there is no liability. If a missing card is reported within 2 days of fraudulent activity, then the maximum liability is $50.

If a card is reported lost or stolen more than 2 days but less than 60 days after it is missing, the consumer can be held liable for up to $500 of the loss. After 60 days, the consumer can be held responsible for the entire amount that is missing from their account, as well as any accounts that might be linked to it.

But my ATM has a Visa or MasterCard logo, what does that mean?

This is the most confusing type of card. This card can be used as an ATM card or at the point of purchase as a debit card or credit card. No matter how the card is used, it will be automatically deducted from your checking account.

If the card is used as a debit card, a PIN is usually requested. The purchase is immediately deducted from your checking account.

If the card is swiped and credit is chosen at the register, a PIN is usually not required. In this case, even though it was swiped as a credit card, it is still considered a debit card transaction. While it may take a few days, the purchase price will be deducted automatically from your checking account. 

Remember, whether a debit card is swiped as a debit or credit transaction, the purchase will be automatically deducted from the consumer’s checking account, but it could take a few days for a credit transaction to clear your account. That means it’s up to you to keep a mental record of the transaction and deduct it from your checking account balance the day of the purchase until the withdrawal has been made from your account.

Otherwise, you risk causing an overdraft on your checking account.

Visa and Mastercard branded debit cards have the same deadlines as ATM cards for reporting fraudulent activity: if reported within 2 days, the maximum liability is $50. After 2 days, the liability increases to $500. If the consumer waits 60 days, then they may lose their entire account plus any linked accounts. 

What is a credit card?

Credit cards allow a consumer to purchase goods and services by borrowing against an approved line of credit. It is a loan. Purchases made during the month are billed to the credit card holder, and you will pay the bill at a later date.  

Should you be unable to pay the entire balance due, then the credit card company charges you interest.

If the payment is late, the credit card company may also charge late fees and revoke promotional interest rates.

Unlike an ATM or ATM/Debit cards, all charges, as well as any cash advances, are not automatically deducted from your checking account, unless specific arrangements are made through the bank.

Credit cards carry some additional protections that debit and ATM cards do not have. If a credit card is lost or stolen, under the Fair Credit Billing Act, the maximum liability is $50. If the missing card is reported before any fraudulent charges are made, there is no liability at all. 

* When purchasing, you must choose whether the transaction will be a debit or credit transaction.  If it is swiped as a credit card transaction, the money may not be deducted for several days.

If you’re having trouble getting cash from a credit card, it’s possible that the transaction put you above your credit card’s limit for cash withdraws, which is known as a cash advance. Many credit cards have an overall credit limit and a separate lower limit for cash advances and checks written from your credit card account.

What is a credit card cash advance

Most credit card companies offer you the ability to use your credit card to take out money through what’s known as a cash advance. Unlike a debit card, however, getting cash with your credit card at an ATM is considered a short-term loan and can be expensive.

Fees for a credit card cash advance

Unlike withdrawing money from a bank account, a cash advance pulls money from your line of credit through your credit card. In addition to repaying the money you withdraw, you’ll need to pay additional fees and interest as well.

The fees for a cash advance can be substantial. Depending on your credit card terms, the company may charge a flat fee for withdrawing money, or they’ll charge you a percentage of the cash advance. Keep in mind, you may incur additional ATM fees as well.

Interest for a credit card cash advance

In most cases, you’ll also commonly pay a higher interest rate for a cash advance than you would for a typical credit card purchase. Unlike other purchases that have a grace period before they start to accrue interest, interest on a cash advance starts as soon as you withdraw your money.

Before considering a cash advance, check your credit card’s terms and policies to find out the credit limit and fees associated with it. Your latest credit card statement will also list the current interest rate for cash advances. You can also contact the company directly by using the number on the back of your credit card.

Learn more about managing your credit cards