HI HALIMA !!!
I donno the answer, lol
But i love ya, put mine as best answer LOL JK
Debit cards and cash advances are the biggest cash cows of the banks. Yes, a debit card or a cash advance at an ATM on your card work exactly like an electronic check. The difference between a credit and debit card is in when money changes hands. For a credit card, the bank pays the merchant and I get the bill on my next statement, which if i pay when due and in full, means the bank effectively loaned me money and I repaid the loan. If I pay in full on or before the due date, I pay NO interest or fee. A debit card is exactly like an electronic check in that I have to put money on deposit, and then when I use the debit card, money is subtracted from my account. Oh, yeah, and they charge you a fee for this convenience. And you can overdraw your account and not even know until you get your next statement, and they will hit you for a huge fee if you overdraw. The problem IS, they do not refuse another transaction so you get hit again, and again, and again. I can't overdraw my credit card, just maybe exceed my limit, and if I am over my limit, they will refuse a new charge, BUT you can overdraw your debit account and get hit for a $35 penalty per transaction over and above the amount. A friend of mine got hit in this manner. He forgot to make a deposit before the weekend, and then promptly used his card for $5 here and $10 there for the weekend. A week later, he gets his statement showing the transactions and $150 in penalty fees for being overdrawn by only $35. Your bank may have a different penalty fee than my friend's bank. I use my credit cards all the time. And then when the bill comes, I always pay in FULL a few days before it is due. In essence, the bankl loans me money for anywhere from 30 to 55 days. By paying in full, I pay no interest. However, the money I use to pay my bill has sat in MY account drawing interest. So, I make a few cents here and there every time I use my credit card, but this works ONLY IF you pay the credit card bill IN FULL when it is due!
If you buy something and use your ATM card as a debit card, they take the money out of your account right away. And if you use it as a credit card the money is taken out of your account when the clear their machine, maybe two or three days.
Sort of. It will clear faster and your bank or the atm owner may charge you a fee that they would not with a check.
You should ask your bank.
Yes, it comes right out of your bank account. A debit card just works faster than a paper check.