Difference Between ATM, Prepaid and Debit Cards

Difference Between ATM, Prepaid and Debit Cards


What is a debit card?

A debit card is a type of payment card that is usually linked to a bank’s savings account. Debit cards don’t borrow money like credit cards. You can spend or withdraw money through debit card based on the money in your bank savings account. With a debit card, you spend the money in your account, so it doesn’t have to pay the bill at the end of the month like a credit card. As a result you don’t have to pay extra dividend to the bank.

Who Should Use Debit Cards?

If you want to pay money by card and are afraid of extra bank interest or debt at the end of the month, then using a debit card is better for you. Debit card is linked to your bank account so you can use the amount of money you have in your bank account or the amount of money deposited.

Advantages and Disadvantages of Debit Cards

Debit cards have advantages as well as disadvantages. Let’s find out about it.


  • Despite spending money on the card, there is no possibility of you getting into debt.
  • You can easily pay by debit card at any merchant
  • In case of withdrawing money, you can withdraw your own money at any time through the ATM booth without going to the bank.
  • Instead of carrying cash in your pocket, you can keep your money safe with the card.


  • Transactions with this card, like a credit card, do not earn you a credit score.
  • Debit cards incur a small transaction fee.
  • As the card is usually linked to the main bank account, if the card is lost, your bank account may be at risk.
  • There is always a certain amount of money in your account when opening a savings account or you may have to pay a fee.

What is a prepaid card?

Prepaid card is also a payment card like debit card but your bank savings account is not linked with this card, you can add money to the card and spend it in your next transaction. It’s like a gift card. You can add money to your prepaid card and spend time and time again.

Prepaid cards can be used for fixed or general transactions at certain retailers. But nowadays you can do almost all merchant or online transactions with prepaid card. However, since payment is not guaranteed with all merchants, it is important to have an alternative payment method.

Who Should Use Prepaid Cards?

Prepaid cards can be very convenient for buyers who want to stick to a certain budget. There is no need to look at any credit score in getting a prepaid card, so there is no problem even if your credit score is very low or non-existent.

Advantages and Disadvantages of Prepaid Cards


  • No credit score required.
  • Since the card is not linked to your main bank account, even if the card is lost, your bank account will not suffer from security issues.
  • This card helps a lot in budgeting.
  • Certain cards also offer cashback with travel features.


  • Not all merchants accept this card so an alternative payment method is required.
  • These cards carry higher fees than debit cards.

It is not easy to say which of these two cards is the best. At the end of the day, it really depends on which card benefits you like the most and how you want to use your card. In fact, it is most beneficial to have multiple cards. This way you always have an alternative when your primary card runs into trouble.


What is an ATM card?

ATM card is a very easy way to withdraw money from the bank. It is possible to withdraw money from anywhere in the country using an ATM card. There are still many people in our country who do not know what an ATM card is, how to withdraw an ATM card or what are its advantages and disadvantages. In today’s article we will know everything about ATM cards in detail.

ATM card is a card through which you can transact anywhere in the world from your bank or any supported ATM booth. Sometimes carrying cash in your pocket can be dangerous. In that case, you can use ATM card to withdraw money as you need. Basically the digital bank cards linked to the account are called ATM cards.

What is an ATM machine?

Although ATM card and ATM machine are two different things, there are many of us who think that they are the same. But literally ATM card and ATM machine are completely different things. An ATM card is basically a small card that contains a specific chip. On the other hand, the machines which are present in the ATM booth for withdrawing money are called ATM machines. ATM basically means Automated Teller Machine. This machine is connected to the online bank. These include cash notes. ATM machines are controlled by computers.

What are the types of ATM cards?

This card can be mainly divided into two parts. One is credit card and other is debit card. The working style of these two cards is different. A card through which you can transact money in excess of your deposited amount is called a credit card. This card basically allows you to borrow more money from the bank. On the other hand, a debit card is a card through which you can spend only as much money as you have in your bank account. Debit cards don’t offer the extra borrowing facility that credit cards offer. However, if you withdraw money from the ATM booth with a credit card, you have to pay a lot of extra charges.

What is the function of ATM card?

ATM card is a type of modern technology that is very small in size and with that you can transact money through your bank account. In earlier days, one had to stand in line in front of the bank to withdraw or deposit money. Now it will be possible to withdraw it at any ATM booth 24 hours a day or night.

How to get ATM card?

A customer has to follow certain steps to get an ATM card. They are –

  • First of all open any type of supported bank account within the country.
  • Then collect an ATM card from that bank.
  • While taking this card you have to submit many necessary documents to the bank. It will not be possible to get an ATM card if you do not provide the required documents to the bank.
  • When an ATM card is given to you by the bank, you can activate it and transact money through that card.
  • After opening the bank account, if you want to link the ATM card with the bank account, you must talk to the bank authority. The working style of different banks is different so it is best to talk to the person working in the bank and work accordingly.

How to withdraw money using ATM card

Withdrawal using ATM card is very easy and safe. To withdraw money from ATM card follow the following steps –

  • You have to go to the specific ATM booth of your bank account and stand in front of any ATM machine.
  • Place your ATM card in that machine and enter the security pin and select the option to cash out or cash in.
  • Now you have to type the amount of money to be transacted.
  • The bank will give you a secret pin code while issuing the ATM card. This code is very important and care must be taken that no one but you knows this code.
  • Once the entire process is complete, your card will be ejected from the machine again. Collect carefully.

Thus you can withdraw money from your bank account through ATM card. ATM card can withdraw fixed amount of money. However, the amount of this money varies from bank to bank. That’s why you should know your bank’s policy on how much money you can withdraw from an ATM card.


ATM card Benefits

  • There are several benefits of using these cards. However, these benefits may not be the same for everyone. Some of the benefits of ATM cards are given below –
  • You can easily make transactions through debit card.
  • By using this card you don’t need to carry cash with you. You can carry a large amount of money on the card if you want.
  • ATM card can be used for various shopping malls, online marketplaces, bill payments and more.
  • Money can be deposited or withdrawn from the ATM booth 24 hours a day or night, seven days a week.

Disadvantages of ATM cards

  • What has advantages also has disadvantages. Disadvantages of this card are:
  • You will become indebted to the bank for making money transactions through ATM’s credit card.
  • If someone knows the secret pin number of your card and gets the card, they can make transactions through the card.
  • Every year the bank has to pay certain amount of charges for the ATM card.

At present, in the era of modernization, ATM cards are making people’s lives easier. ATM card can play a very useful role if it is used properly.

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