The Automated Teller Machine (ATM) has undoubtedly become a necessity in our daily lives. The machine provides easy access to our bank accounts, enables cash withdrawals, deposit and allows for other banking transactions. An ATM card is a must-have if you want to make use of the ATM, and there are various types of ATM cards. In this article, we shall explore the various types of ATM cards that are available and their features.
Types of ATM cards
1. Debit cards
The debit card is undoubtedly one of the most popular types of ATM cards that people use globally. The card is linked to your bank account and enables you to withdraw cash, make payments, and even check your balance at the ATM. It also allows you to make purchases at point-of-sale terminals, just like a credit card. However, it is different from a credit card as it accesses the money available in your bank account directly, and you will need to have adequate funds in your account before making any transaction with the card.
2. Credit cards
Credit cards are also linked to your bank account, but unlike debit cards, they allow you to borrow money from the bank to make purchases. Credit cards are a great way to build a credit history, and many people use them to pay for everyday transactions. They offer a degree of flexibility that debit cards do not, and you can make purchases even if there are no funds in your account.
3. Prepaid cards
Prepaid cards are an excellent alternative to credit and debit cards if you do not want to link them to your bank account. With a prepaid card, you can load a specified amount of money into the card and use it for transactions. Once the amount is depleted, you will need to reload the card before using it again.
4. Travel cards
Travel cards are designed for those who travel frequently, especially overseas. They enable you to withdraw cash and make purchases effortlessly while you are traveling. They are usually more secure than cash, and you can lock in exchange rates before you travel, ensuring that you do not lose money due to currency fluctuations.
In conclusion, ATM cards have made banking convenient, and there are various types of ATM cards that cater to different needs. Whether you are looking for a card that allows you to access your funds conveniently, prepaid cards that you can use to control your finances or travel cards that enable you to transact effortlessly while on the move, you can find an ATM card that suits your needs.
