3 FAQs: ATM Card vs. Debit Card vs. Credit Card (May 2026)

Having plastic in your wallet is almost a necessity these days. Not only is it convenient to be able to swipe or tap to make a payment for your everyday purchases, but some retailers require it. And if you do any shopping online, you’ll likely need to have some type of credit or debit card to complete a transaction.

Before you acquire your next piece of plastic, it’s important to know that not all card types are created equal. Below, we’ll dive more deeply into the differences between an ATM card vs. a debit card vs. a credit card — but first, here’s a quick look at the basics:

Now that we’ve covered the basics, let’s get into the nitty-gritty of each card type to help you decide which options may be most suited for your situation. Use these links to jump ahead to a specific card, or keep scrolling to read about all three. We’ll cover the similarities and differences between credit cards, ATM cards, and debit cards; take a look at some of our top picks for credit cards with the best perks; and provide information on how to decide which type of card is best for you.

Credit Cards | ATM Cards | Debit Cards

While credit cards appear very much like debit cards and ATM cards, they have a very different impact on your bottom line.

• Credit cards, unlike most debit or ATM cards, are the same as taking out a loan and require a bank or lending institution to review an application and approve you for creditworthiness. If you would have a hard time getting a loan, you may not be able to get a credit card.
• Just the act of applying for a credit card can affect your credit. When the financial institution pulls your credit report, your score can take a small, temporary hit. Too many applications can have a significantly negative outcome for your credit history.
• Having the right card, however, can set you up with the opportunity to make payments on time, increase your limits, and show creditworthiness. All of these will raise your score and make you eligible for even bigger and better card offers.
• There are added consumer protections that credit card holders may qualify for, including extended warranties and travel insurance. They also offer the best protection against fraud, and you will find credit card companies to be very helpful if you ever have to dispute a charge based on faulty or unacceptable service or product performance.
• While some banks are starting to offer small cash-back rewards for debit card usage, credit cards are still mostly responsible for the best perks and offers. Cash-back, frequent flyer miles, hotel stays, and big discounts can be given for responsible purchases and on-time payments.

Here are some of our expert’s top choices for credit cards with the best perks:

Bank of America® Customized Cash Rewards credit card

CardRates Expert Rating

Bank of America® Customized Cash Rewards credit card

4.9/5.0

About this rating

Our experts rate credit card offers based on factors like rewards, APRs, signup bonuses, fees, and approval rates, with a focus on benefits that provide the best value. We also consider cardholder needs such as credit-building potential, issuer reputation, and customer service. Our ratings are unbiased, updated regularly, and not influenced by issuers.

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Ashley Fricker Senior Editor

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★★★★★ 4.9/5.0

at Bank Of America'ssecure website

Our Review »

• $200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening.
• Earn 6% cash back for the first year in the category of your choice. You’ll automatically earn 2% cash back at grocery stores and wholesale clubs, and unlimited 1% cash back on all other purchases. After the first year from account opening, you’ll earn 3% cash back on purchases in your choice category.
• Earn 6% and 2% cash back on the first $2,500 in combined purchases each quarter in the choice category, and at grocery stores and wholesale clubs, then earn unlimited 1% thereafter. After the 3% first-year bonus offer ends, you will earn 3% and 2% cash back on these purchases up to the quarterly maximum.
• No annual fee and cash rewards don’t expire as long as your account remains open.
• Select your card design option when you apply – the Customized Cash Rewards design, or the limited-time FIFA World Cup 2026™ design.
• 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 17.49% - 27.49% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 5%. Balance transfers may not be used to pay any account provided by Bank of America.
• This offer may not be available elsewhere if you leave this page. You can take advantage of this offer when you apply now.

Show MoreShow Less See application, terms and details »

Intro (Purchases) 0% Intro APR for 15 billing cycles for purchases

Intro (Transfers) 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days (Balance Transfer Fee 3% for 60 days from account opening, then 5%)

Regular APR 17.49% - 27.49% Variable APR on purchases and balance transfers

Annual Fee $0

Credit Needed Excellent/Good

Capital One Venture X Rewards Credit Card

CardRates Expert Rating

Capital One Venture X Rewards Credit Card

4.7/5.0

About this rating

Our experts rate credit card offers based on factors like rewards, APRs, signup bonuses, fees, and approval rates, with a focus on benefits that provide the best value. We also consider cardholder needs such as credit-building potential, issuer reputation, and customer service. Our ratings are unbiased, updated regularly, and not influenced by issuers.

See Our Review»

Ashley Fricker Senior Editor

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★★★★★ 4.7/5.0

at Capital One®'ssecure website

Our Review »

• Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
• Receive a $300 annual credit for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options
• Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
• Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights and vacation rentals booked through Capital One Travel
• Earn unlimited 2X miles on all other purchases
• Enjoy access to 1,300+ lounges worldwide, including Capital One Lounge and Landing locations and participating Priority Pass™ lounges, after enrollment
• Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
• Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
• Receive up to a $120 credit for Global Entry or TSA PreCheck®
• Top rated mobile app

Show MoreShow Less See application, terms and details »

Intro (Purchases) N/A

Intro (Transfers) N/A

Regular APR 19.49% - 28.49% (Variable)

Annual Fee $395

Credit Needed Excellent

See Rates & Fees »

Bank of America® Travel Rewards credit card

CardRates Expert Rating

Bank of America® Travel Rewards credit card

4.9/5.0

About this rating

Our experts rate credit card offers based on factors like rewards, APRs, signup bonuses, fees, and approval rates, with a focus on benefits that provide the best value. We also consider cardholder needs such as credit-building potential, issuer reputation, and customer service. Our ratings are unbiased, updated regularly, and not influenced by issuers.

See Our Review»

Ashley Fricker Senior Editor

Close

★★★★★ 4.9/5.0

at Bank Of America'ssecure website

Our Review »

• 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening - that can be a $250 statement credit toward travel purchases.
• Earn unlimited 1.5 points per $1 spent on everyday purchases, with no annual fee and no foreign transaction fees and your points don't expire as long as your account remains open.
• Earn 3 points per $1 spent on travel purchases booked through the Bank of America Travel Center.
• Use your card to book your trip how and where you want - you're not limited to specific websites with blackout dates or restrictions.
• Redeem points for a statement credit to pay for travel or dining purchases, such as flights, hotel stays, car and vacation rentals, baggage fees, and also at restaurants, including takeout.
• 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the Intro APR offer ends, a Variable APR that’s currently 17.49% - 27.49% will apply. A 3% Intro balance transfer fee will apply for the first 60 days your account is open. After the Intro balance transfer fee offer ends, the fee for future balance transfers is 5%. Balance transfers may not be used to pay any account provided by Bank of America.
• This offer may not be available elsewhere if you leave this page. You can take advantage of this offer when you apply now.

Show MoreShow Less See application, terms and details »

Intro (Purchases) 0% Intro APR for 15 billing cycles for purchases

Intro (Transfers) 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days (Balance Transfer Fee 3% for 60 days from account opening, then 5%)

Regular APR 17.49% - 27.49% Variable APR on purchases and balance transfers

Annual Fee $0

Credit Needed Excellent/Good

+See More of Our Favorite Rewards Cards

Before you go thinking that you could not possibly qualify for a credit card, it’s wise to check cards that are specific to your level of creditworthiness. Everyone has to start somewhere, and there are now credit cards available for all levels of credit, including no/limited credit, bad credit (, good credit (640-720), and excellent credit (720+).

This sounds like a no-brainer, but it really is important to realize that this type of card has only one, very specific purpose. It’s used to take out cash, and nothing more!

• Since the ATM card needs to access cash, it’s tied directly to the checking or savings account at your banking institution. If you don’t have an ATM card yet, it’s wise to ask for one.
• There’s no way to “float” funds with this type of card. Money is debited in real-time the moment you access the cash.
• Not a fan of fees? Unfortunately, most cash withdrawals will come with a cost. Sometimes, you can actually incur two fees: one from your financial institution and one from the owner of the ATM machine (if they are not the same).

A debit card can also be used as an ATM card, which we’ll explain in greater detail in the next key difference:

You can enjoy the convenience of paying with a credit card, even if you don’t have access to an actual line of credit like with a credit card, by using a debit card. Here are some important facts to know about debit cards:

• You’ll need your PIN (Personalized Identification Number) to complete your purchase. This is usually a 4-digit code that you want to make sure to memorize — and don’t ever write it anywhere on your debit card.
• Debit cards are tied to checking accounts, and you’ll see your funds deducted immediately upon making the purchase.
• If you don’t have enough cash in your account to cover your purchase, one of two things may happen. Depending on what authorization you’ve given your bank, you may be approved for a purchase to go through, which will be subject to the bank’s discretion and overdraft fees. If you do not have authorization for these purchases to be approved, expect the cashier to let you know that your card has been declined. Another option is to link your card to a checking account that has a savings account for overdraft protection. This may still result in fees, but will guarantee purchases go through, as long as there’s enough in your savings account to roll over.
• Sometimes, retailers will even allow you to ask for cash back on top of your purchase amount. Check with your bank before doing this, however, as some charge additional fees or will even categorize the purchase as an ATM transaction (resulting in even more fees!)
• Did you know that you may be able to run your card as a “credit” transaction? By skipping the PIN and running it as credit, you will need to sign for purchases, and charges could take a few days to go through. (This is only available on cards with the Visa or MasterCard logos.)

Though you can run your debit card as credit, you are still using your own money to pay for the purchase, unlike a credit card where you’re using the bank-issued line of credit.

Deciding whether to get a credit, ATM, or debit card is a very personal decision that will be made by looking at your own needs for purchases. If you will simply need to take cash from your own account, an ATM card will likely do. Flexibility with purchases at most retailers will require at least a debit card. For those who need access to additional funds, credit cards are the only way to go. As each has its own perks – and responsibilities – it’s best to be honest about what you want, but also what you can handle.