Debit Cards

To use an ATM, insert your debit card or credit card into the machine, input your PIN, and select the type of transaction you want to make from the menu. You can check your balance, withdraw money or deposit money. You also may be able to transfer money from one account to another or pay a bill, depending on the ATM.

Unless you use an ATM owned by the issuer of your card, you will likely have to pay multiple fees when withdrawing money from an ATM. There could be an ATM-owner surcharge as well as a fee charged by your card's issuer.

Using an ATM with a debit card is far better than doing so with a credit card. You should actually avoid credit card ATM withdrawals whenever possible. This type of transaction – called a cash advance – is very expensive. The average credit card charges a fee of more than $8 or 3% of the amount withdrawn, whichever is higher. Plus, the average cash advance APR is over 21%, and interest takes effect immediately.

But whether you're using a debit or credit card, the steps of how to use an ATM are pretty much the same.

How to use an ATM:

Step 1: Insert your card. Insert your debit card or credit card into the machine to begin the transaction.

Step 2: Type in your PIN. This is typically 4 digits but can be longer. With a debit card, you get this number with your card or soon after by mail. With a credit card, you may have to call the issuer to request a PIN.

Step 3: Choose a type of transaction. You should be able to make a deposit or withdrawal (debit card only), check your balance, or take out a cash advance (credit card only). You may also be able to transfer funds between bank accounts or pay your credit card bill.

Step 4: Enter the transaction amount. Input the amount of money you are depositing, withdrawing, paying, etc. when prompted.

Step 5: Select your receipt preference. Choose whether or not you want a paper receipt. You may also have the option of receiving a receipt by email. Depending on the ATM, you might be asked this right when you put your card in.

Step 6: Take your card. Remove your card if the machine held it during the transaction. And don't forget to take your money if you made a withdrawal or cash advance.

If you find yourself struggling with how to use an ATM at a bank, one of their employees should be happy to help you. And if you're unsure which ATMs, if any, are free to use with your particular card, you can give the issuer a call. If you do use an ATM with a fee, it won't be more than a few dollars, but that can add up if you make a lot of transactions.

The main difference between debit cards and credit cards is that a debit card is linked to a checking account, while a credit card is linked to a line of credit. When a purchase is made with a debit card, the funds immediately come out of the bank account. When a purchase is made with a credit card, it is “charged” to the credit line to be repaid later.

There are plenty of other differences between the two payment methods. Here are some of the biggest differences between credit cards and debit cards:

1. Using a credit card builds credit; using a debit card won't. Credit cards report account information to the major credit bureaus each month, allowing users to build a track record of responsible borrowing. Debit cards are not included on credit reports.
2. Credit cards give rewards; debit cards generally don't. Many credit cards give cash back, points or miles in return for each dollar in purchases charged to the card. Some credit cards even have initial rewards bonuses for spending a certain amount within a few months of opening an account. Most debit cards don't give rewards for purchases – though you can get some nice checking account signup bonuses.
3. Debit card fraud is more of a headache than credit card fraud. All four major credit card networks – and all 3 debit card networks – have a $0 fraud liability guarantee. But credit card users have time to spot and handle the fraud before they pay the bill, while debit card users pay for fraudulent transactions at the time of purchase. So even though cardholders usually aren't liable for fraud on either type of card, it may take a while for debit card users to get their money back, while credit card users won't ever lose the money. Plus, debit card protections are not as favorable if a PIN is used to complete the fraudulent purchase.

Credit cards and debit cards may not look very different. Both debit and credit cards have a card network logo – and these days, both come with an EMV chip on the front for an extra layer of security when making transactions. But they are quite different in practice.

In fact, the differences are big enough to make an impact in the lives of those who use them. Generally, credit cards are better in fraud cases and to build credit, but they also have their downsides. Debit cards give users peace of mind knowing they won't spend more money than they have, but they also won't earn rewards or build credit.

You cannot pay a credit card with a debit card. But you can a pay a credit card with the bank account that a debit card is linked to, by doing an electronic transfer. However you choose to pay your credit card bill – whether you do it online, over the phone or by mail – there will not be an option to enter any kind of card number as the payment method. That's among the reasons why you can't pay one credit card's bill with another credit card, either.

To pay your credit card bill using the checking/savings account behind your debit card, you'll usually need to enter information like the account number and routing number for your checking or savings account. This is the most common way people pay their credit card bills, and it lets you take the money straight from your bank account and apply it to your bill.

Once you've entered the info for the account you'd like the money to come from, you can usually save that for next time so you don't have to manually enter it every month. You can also set up automatic bill payment, so that on the same date each month, money is withdrawn from your account to pay your credit card bill.

The store that gives the most cash back at the register is Albertson's, where you can take out $100-$300 when you make a purchase with your debit card. The amount of cash back you can get varies by location. The stores that give the most cash back via rewards are Ace Hardware and Best Buy, whose members earn points for every purchase that are redeemable for cash back.

Stores That Give the Most Cash Back at the Register:

• Albertson's: you can get $100-$300 with a debit card.
• Food Lion: you can get $200 with a debit card and $50 with a personal check.
• Safeway: you can get $200 with a debit card.
• Save Mart Supermarkets: you can get $200-$300 with a debit card (varies by location).
• Shopper's Food Warehouse: you can get $300 at the register and $100 at self-checkout with a debit card.
• Walmart: you can get $100 at the register and $60 at self-checkout with a debit card, and $20 with a personal check at the register.

Many stores also have a rewards program that customers can join for free. In return for making purchases, members earn either cash back in the form of store credit or points redeemable for cash back.

Stores Where You Earn the Most Cash Back for Purchases:

• Ace Hardware: get 10 points for every dollar spent once you sign up for Ace Rewards. For every 2,500 points, you get a $5 reward.
• Best Buy: get 0.5-1.25 points for every dollar spent once you join the My Best Buy program. For every 250 points, you'll get a $5 reward. The more you spend, the higher your membership level will be, and the faster you can earn rewards.
• CVS: get 2% back on all purchases once you join the ExtraCare rewards program. Rewards are paid out four times a year, in January, April, July, and October.
• Dick's Sporting Goods: get 1 point for every dollar spent after joining the Dick's ScoreCard program. For every 300 points, you'll get a $10 reward.
• Office Depot/Office Max: get 2% back on all purchases once you join their rewards program. After spending $500 in a year, you'll reach VIP status and get 5% back on ink, paper, toner, and copy/print/ship services.
• Petco: get 1 point for every dollar spent once you join the Pals Rewards program. For every 100 points, you'll get a $5 reward.

All of the store programs that reward you for purchases are free to join, so they're definitely worth joining if you're a frequent shopper. However, if you want to earn rewards faster and at a higher rate, your best bet is to also get a store credit card. Many of the rewards programs listed have accompanying credit cards.

If your debit card is about to expire, you don't need to do anything. The issuer will mail you a new card that should arrive prior to the expiration date. If you don't receive your new card before the old one has expired, you should contact the issuer directly.