Credit cards with debit function

Some banks offer their customers credit cards that allow them to withdraw cash from ATMs with the same fees and requirements as a debit card.

These cards can be a good option for those who only use the debit card to get cash at ATMs and instead pay for purchases with a credit card, since they avoid having to have two cards.

Credit or debit?

Debit cards are a means of withdrawing funds deposited in checking accounts:

  • Money withdrawn at ATMs, or purchases paid for with a debit card are immediately debited from the associated account.
  • The withdrawal limit for purchases is set by the available balance in the checking account.

Credit cards, on the other hand, offer the cardholder a credit (which is established according to the level of income and other solvency parameters).

  • The user can draw on this credit until it is exhausted.
  • Card contracts stipulate different methods of payment of the credit drawn down. The most common is payment at the end of the month without interest, although it is possible to defer payment for a longer period by paying the interest fixed in the contract.

Credit cards with ATM debit function

The usual with this type of card is that purchases are made on credit and the total amount of the purchases made is paid at the end of the month without interest if we have chosen this option. But… what happens at the ATM?

Users of this type of card, when using the ATM, can choose between two options: debit withdrawal or debit to the current account or credit withdrawal or debit to the credit account.

If you want to withdraw money by debit, you must choose the first option.

If you decide to withdraw money by credit, the amount withdrawn is added to the credit balance drawn for the purchases made and will be returned according to the payment system chosen, paying the corresponding interest if you have chosen a payment other than the end of the month without interest. In addition, the fees for withdrawals are much higher, reaching in many cases 5% of the amount withdrawn.

Pay attention to your card

Therefore, if your bank offers you a credit card with the possibility of withdrawing money from ATMs by debit, be careful:

  • Be careful to choose the right option when using the ATM, always choosing the debit option with debit to account.
  • Read the conditions carefully. Each issuer may set specific conditions for this type of card, for example, allowing you to pay by debit or credit for each purchase.
  • If you prefer to keep a strict control of your expenses and see each purchase reflected in your current account, a debit-only card will be more convenient for you.
  • Remember that credit cards, in addition to allowing you to pay for regular purchases at no cost, offer some additional advantages, the best ones offer incentives for their use and many of them allow direct debit payments to any account, so you do not have to settle for the card offered by your bank.

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