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It's not a debit card transaction, it's an ATM withdrawal.


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they charge debit, so it's basically an atm withdrawal at point of sale.

An ATM withdrawal with a credit card is a cash advance.

Nope. ATM withdrawal. My bank even reimburses the ATM fee associated with it

Wait, there's a fee to withdraw money from ATMs? Never heard of such a thing.

Because unlike in an ATM withdrawal where you take money out from your bank, you just paid the merchant a bunch of money, and the merchant is giving some of that payment back to you as cash.

Reading this, it doesn't sound like you said anything different. Sure, it isn't the ATM itself that makes the decision, but the authorization system can still step in and allow a transaction that is not committed to the actual account's log.

I'm sure that, under the hood, there are a lot of ACIDic transactions going on, but, stepping back, it still looks pretty BASEic. When I hit "withdraw $200", there is no guarantee that my actual account has a transaction commit for that amount. Instead, there may just be a log message saying "SoftwareMaven withdrew $200".


Title is an outright lie, withdrawals are debited and counted as an overdraft if you don't have the money.

How is this different from withdrawing from an ATM with my C/C ?

This is a done with a transaction called a "withdrawal."

The article says they can withdraw cash from ATM's.

I asked the balanced guys this last time, already, but maybe you know the answer as well.

If using the ATM network, can they also initiate a withdrawal from a debit card at the 25 cents rate?

This would be a huge saving versus paying a credit card processing fee, on debit cards.


How is any of this different with cash withdrawals? You're still withdrawing from a digital account.

Withdrawal as in obtaining cash? Most payments don't use cash so it seems like a bit of a red herring.

Perhaps, but there are per-transaction and daily limits on ATM withdrawals.

In most cases when processing a withdrawal, ATMs or POS terminals don't know your exact balance and how much money you've taken out already today. A withdrawal tends to involve a request for $X which gets a yes/no response from the bank or from the chip of the card if the terminal is not online connected - the bank or chipcard logic will check the balance and daily limits, not the ATM.

You can think of the (rare nowadays, but possible) offline, paper-based card transactions (physical imprint of the card number + signature) as a very strong example of eventual consistency - your card will be billed for that amount sometime later when the documents are processed and all the balances will be correct, but for many days the "online visible" card balance as known to the bank will be different from the "real" legal/accounting balance of that card.


I presume a withdrawal is different from a wire transfer or cheque.

I was out of town and went to make a large cash purchase. (The retailer added a very hefty 10% for using debit or credit cards.) So I ran into the problem of a daily cash withdrawal at the ATM. I also did not have anything with me other than an ATM card and a Credit card with me (No ID). Turned out the bank didn't even ask for my ID when I went in. I just explained my situation and they just handed over a couple thousand...

Security at the bank seems discretionary at best.


Actual bank accounts/debit withdrawals can be more difficult than say a credit card theft. But even then it's not flat out impossible to recoup

I'm pretty sure "ATM" is in common use to describe machines that will only let you withdraw cash.
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