| ATM Card
vs. Check Card
As an alternative to writing
checks and using a credit card, most major banks have
teamed up with major credit-card companies to issue check
cards.
Check cards are different from straight ATM cards in a
couple of ways. First, check cards are also known as debit
cards because of how they work -- instead of getting credit
for your purchase and receiving a monthly bill, like you
do with a credit card, a check/debit card deducts money
from your checking or savings account.
Also, while you can only
use your ATM card at the ATM machine (and some grocery
stores), you can use a check card at most retailers that
accept credit cards, such as:
Grocery stores
Gas stations
Discount superstores
Book stores
Ticket counters (concert tickets, airline tickets, etc.)
Pharmacies
Hotels
E-tailers
Restaurants
There are exceptions. Some hotels and rental car services
only accept credit cards because it's easier, cheaper,
and less of a risk to them than check cards. Those that
do accept check cards often put a certain amount of money
in your bank account "on hold" (unavailable
to you) -- usually the cost of the room or rental including
taxes and other fees, plus a percentage of the total or
a fee to cover possible damages. When you check out of
the hotel or turn in your rental car, the difference between
the "hold" amount and what you're actually billed
is released back into your account. This is something
to consider when using your debit card to reserve a hotel
room or rent a car.
You can use your check
card as either a credit card or a debit card -- either
way, it comes out of your account. The only difference
is that if you tell the clerk "credit card,"
you sign a slip, and if you tell the clerk "debit
card," you enter your PIN number instead of signing.
Some banks charge you a fee if you use your check card
as a debit card (if it costs them more to process those
transactions), but not if you use it as a credit card.
It's easy to tell the
difference between a plain ATM card and a check card:
A check card has your name, "credit" account
number, the credit company's logo, the bank's logo and
"Check Card" printed across the front of it;
an ATM card has only your name, account number and bank's
logo on the front of it. Both cards have strips on the
back for the authorized cardholder to sign on. A check
card company, such as Visa, has agreements with banks
to issue what looks like a Visa credit card. A Visa check
card can be used at any retailer that accepts Visa credit
cards and at ATMs worldwide. |
