An ATM (Automated Teller Machine) card can be used to withdraw cash from your
checking account. There are no fees if cash is withdrawn from one of your bank’s
ATMs. However, if money is withdrawn from a non-network ATM, you will likely be
charged a fee.
A debit card is an ATM card with a MasterCard or Visa logo allowing you to make
purchases in stores and online. Since each transaction is taken directly from your
bank account, you will need to monitor the balance to make sure that you always
have sufficient funds. The fees for an overdraft—spending more money than is
available in the account— are very high.
Many banks offer free checking accounts to students. These accounts typically come with an
ATM card or debit card, the ability to write checks, and the option to access your account
online to review the balance and transaction history.
Be aware that some companies, including gas stations, hotels, and car rental
agencies, may place an authorization hold on the debit card for the estimated
cost of a transaction which is greater than the actual purchase price. These
funds are blocked until the bill is paid, which temporarily reduces your account
balance. In some instances, it can take a few business days for the hold to be
removed. Therefore, you will need to cautious about making such purchases if
your account balance is low, in order to prevent an overdraft or having a
transaction denied for insufficient funds.
When buying something with a debit card, the cashier may ask you if the purchase is
‘credit’ or ‘debit.’ While either option will take the funds directly from your checking
account, there are different procedures to complete the transaction. If you choose credit,
you normally will sign the receipt (though many merchants no longer require a signature
for purchases under $25). If you choose debit, you will need to enter your Personal
Identification Number (PIN). Choosing debit also gives you the option to ‘get cash back’—
withdraw additional cash from your account at no extra charge.
International Student & Scholar Services
Office of Internationalization, University of Denver
2200 S. Josephine St., Denver, CO 80208
Phone (303) 871-4912
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BANKING
ATM
Card
Tips
Debit
Card