Difference Between ATM, Debit, And Credit Card

Understanding the distinctions between ATM, debit, and credit cards is essential for managing your finances effectively. An ATM card’s primary function is to facilitate cash withdrawals from ATMs. It is directly linked to your bank account and generally lacks the ability to make purchases either online or in-store. In contrast, a debit card not only allows for cash withdrawals but also enables in-store and online purchases, with funds being directly deducted from your bank account at the time of the transaction.

This blog delves into the distinctions, providing a comprehensive guide to help you make informed decisions and explaining why the Airtel Axis Bank Credit Card stands out from the rest.

Also Read: How Does a Credit Card Work? – Process Explained

Key Differences Between ATM, Debit, and Credit Cards

Understanding the specific differences between these cards can help you choose the right one for your needs:

1.   Functionality:

• ATM Card: Primarily for cash withdrawals of your bank account. It is linked directly to your bank account and typically lacks purchasing capabilities at retail outlets.
• Debit Card: For cash withdrawals, in-store, and online purchases debit card is the best available option.
• Credit Card: For borrowing funds up to a credit limit for various transactions, a credit card stands out as the best option.

2.   Source of Funds:

• ATM Card: This card is directly linked to your bank account so that it makes it easy to withdraw money as and when you need it.
• Debit Card: This type of card is directly linked to your bank account
• Credit Card: Utilises a credit line from the issuer based on your credit limit issued by the issuer.

3.   Interest Charges:

• ATM Card: One of the benefits of using ATM cards is no interest charges are made, as it’s your own money.
• Debit Card: Similar to an ATM card, no interest charges, as it’s your own money.
• Credit Card: Interest is charged on the borrowed amount if not paid within the grace period. With the Airtel Axis Bank Credit Card, you don’t have to worry about paying additional costs or interest for your prepayment transactions.

Also Read: 10 Best Credit Cards for Online Shopping

4.   Credit History Impact:

• ATM Card: Does not affect credit history.
• Debit Card: Does not affect credit history.
• Credit Card: Affects credit history positively or negatively based on usage. To maintain a good credit score, ensure that all your credit payments are completed on time. You can also use the Airtel Thanks App to complete all your transactions instantly.

5.   Spending Limit:

• ATM Card: Limited to the available balance in the account.
• Debit Card: Limited to the available balance in the account.
• Credit Card: Limited to the pre-approved credit limit. At Airtel Axis Bank Credit Card, you get access to high-credit limits of ₹5,00,000 and cashback up to ₹16,000.

6.   Transaction Types:

• ATM Card: Withdrawals and balance inquiries.
• Debit Card: Withdrawals, purchases, online transactions.
• Credit Card: Purchases, balance transfers, cash advances.

7.   Fees:

• ATM Card: You may have ATM withdrawal fees.
• Debit Card: Possible fees for overdraft or insufficient funds.
• Credit Card: Annual fees, interest charges, late payment fees.

8.   Security Features:

• ATM Card: PIN for transactions.
• Debit Card: PIN and sometimes additional verification for online purchases.
• Credit Card: Advanced fraud detection, EMV chips, and sometimes additional verification for online purchases.

9.   Fraud Protection:

• ATM Card: Limited protection, mainly relies on PIN security.
• Debit Card: Moderate protection, liability may be limited.
• Credit Card: Strong fraud protection, often zero liability for fraudulent charges.

10. Rewards and Offers:

• ATM Card: Typically, no rewards.
• Debit Card: Some rewards and cashback programs.
• Credit Card: Extensive rewards programs, cashback, discounts, and offers.

Also Read: Things To Know Before Buying Gold on A Credit Card

Features of the Airtel Axis Bank Credit Card

The Airtel Axis Bank Credit Card stands out with its exclusive benefits, making it an attractive option for frequent users. Key features include:

• High Credit Limit: Offers a substantial credit limit suitable for varied financial needs.
• Cashback of up to ₹16,000: Earn significant cashback on various transactions.
• Amazing Offers: Enjoy exclusive deals on travel, dining, shopping, and more.
• Discounts: Avail discounts on purchases made through partner merchants.
• Security Features: Advanced security measures ensure safe transactions.

Also Read: What are the Different Types of Credit Cards

Choosing between an ATM card, debit card, and credit card depends on your financial habits and needs. While ATM cards are great for cash withdrawals, debit cards offer broader utility without borrowing.

Credit cards provide the flexibility of deferred payments and come with rewards and benefits, especially the Airtel Axis Bank Credit Card with its high credit limit and lucrative cashback offers. Understanding these differences ensures you use the right card for the right purpose, optimising your financial management and maximising benefits.