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Typically taking between five and 14 days, credit card refund timing can vary based on a number of factors. This includes the speed at which the merchant processes the refund, how soon you requested the refund, and the length of time it takes for your credit card issuer to credit the amount to your account.

If you’re feeling antsy about how long it takes for a refund to appear on your credit card, however, there are ways that you can speed up the process.

How Do Credit Card Refunds Work?

When you make a purchase on a credit card, your credit card issuer pays the merchant and the amount will go onto your account for repayment. Since the issuer technically paid for the purchase, any requests for a refund will go back to the credit card account. In other words, you won’t receive other forms of payment like cash for refunds when you use a credit card since you didn’t directly pay for the purchase.

There are two types of refunds — one for purchases and ones due to fraud.

•   In the case of purchases, you’ll deal with the merchant with whom you made the purchase. Once the merchant approves the refund, the credit card company will process it. Then, the amount refunded will show up on your credit card statement. The credited amount may not appear in the current billing cycle if you made a return in between billing cycles (the end of a billing cycle also tends to be when credit card companies report to credit bureaus).

•   As for fraud, these are charges to your account that you didn’t authorize. Most credit card companies will offer some form of fraud protection as long as you notify them within a certain period of time, usually 60 days. Once the issuer is notified of the fraudulent transaction, it will reverse the charges. You’ll then receive a credit for the amount charged, or the charge will get taken off your account completely, assuming you’re not falsely disputing a credit card charge.

Do All Credit Card Refunds Take the Same Amount of Time?

Not all credit card refunds will take the same amount of time. To get an idea of how a particular merchant accepts and processes returns, you can look at the merchant’s refund policy. Some items to note in this statement include:

•   Types of refunds offered: Some merchants may be lenient on their return policies, while others may only offer store credit for returns, for instance.

•   Refund times: Merchants typically state when they’ll issue a refund, such as within a few business days or weeks.

•   How to make a return: Check to see whether you can make a return in person or if you can ship back the item. If you’re shipping, make sure to see if you or the merchant pays for shipping.

After the refund is processed, you’ll need to wait for your credit card company to post the refund or credit to your account. How long this takes will also vary depending on the issuer.

How Long Does a Credit Card Refund Take?

A credit card refund usually takes between five and 14 days after the customer makes the request.

Keep in mind that the rules for refunds can vary depending on your credit card issuer and how long it takes the merchant to process the refund. The faster the merchant processes the refund, the faster it will hit your account.

However, the above timeframe assumes that the merchant agrees to process the refund. If you were to dispute a credit charge, the process of getting a refund could take much longer. Notifying your credit card company as soon as you can is helpful because it could take some time for them to complete their investigation — they have up to 90 days to do so.

Recommended: What is a Charge Card

Factors That Determine How Long a Credit Card Refund Takes

The two main factors that determine how long a credit card refund takes is the type of refund you’re requesting and where you made the purchase.

The Type of Refund It Is

As mentioned before, credit card disputes — whether for fraud or a credit card chargeback request for a product you never received — may take longer compared to refunds for purchases. Plus, you’ll need to make sure you contact the credit card company within 60 days of the billing or fraud dispute. From there, the issuer should have the dispute resolved within two billing cycles, or up to 90 days.

Where You Made Your Purchase

Different merchants have varying refund policies — the longer it takes the merchant, the longer it will take for the refund request to reach your credit card issuer. Here’s a sampling of some of the refund policies at popular retailers:

•   Amazon: It can take up to 30 days to process a refund. After an item arrives at the fulfillment center, credit card refunds are typically processed within three to five days. Once a return is processed, the funds will appear in your account, usually within three to five business days.

•   Square: Any merchant that uses Square to accept purchases will take two to seven business days to process a refund. It can then take an additional two to seven business days for the refunded amount to appear in your account, resulting in a total credit card refund time of nine to 14 business days.

•   Walmart: Refunds tend to take up to 10 business days to process.

How to Speed up the Refund Process

The good news is that there are some ways you can help to speed up the refund process.

Get It There Faster

Some retailers have multiple ways to return items, and certain methods have faster processing times than others. For instance, many major retailers process refunds faster (in some cases, immediately) if you make a return in-person at one of their store locations instead of mailing back the item.

Make Use of Loyalty Benefits and Store Credit

You may be able to receive expedited shipping for returns or faster refund processing times if you belong to a merchant’s loyalty program. Often, you also may be able to get a refund faster if you opt to receive a store credit instead of getting a refund issued to your credit card.

How Does a Refund Affect Your Credit Card Account?

Refunds are typically treated as an account credit. There’s no credit card refund issued in the form of cash since you borrowed the money from the credit card issuer to make the purchase in the first place.

While the purchase is still billed to your account, you’re technically responsible for payment. If you made the purchase, paid it off once the billing cycle ended, and then requested a refund, you’d get a credit to your account. Due to credit card rules, the refund does not count as a partial payment.

No matter how long you wait for a refund, it’s important to manage your account wisely and make sure you’re using a credit card responsibly so you don’t end up overextending yourself. As long as you pay your bill by the due date, you won’t risk hurting your credit score while you’re waiting for your refund.

Recommended: When Are Credit Card Payments Due

Refunds on Rewards and Fees

Credit card companies usually won’t refund any interest or fees you may have paid because you carried a balance for a purchase that you’re now trying to get a refund for. Similarly, if you made a purchase while you were overseas and were charged a foreign transaction fee, you most likely won’t get a refund for that either.

When it comes to rewards, whatever you earned for the purchase will get deducted from your earnings after the refund is processed and posted to your account. You end up with a negative rewards balance if you redeemed all of your points before requesting a refund.

The Takeaway

Credit card refunds typically take between five and 14 days. Being aware of how credit refunds work helps you to understand how to keep better track of your credit card statements and rewards earnings. It can also help you to determine which credit cards are better used for certain situations.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What happens to my rewards if I request a refund?

Your rewards will be deducted from your current balance after your request for a refund is processed.

How long does it take for a refund to appear on a credit card?

A refund may take up to seven or even 14 days to appear on your credit card statement. This timeframe can vary depending on your card issuer, the merchant, and what type of refund request it is.

Are credit card refunds instant?

Credit card refunds typically aren’t instant. This is because it takes time for the merchant and credit card company to process it.

Will a delayed refund hurt your credit?

A delayed refund typically won’t hurt your credit as long as you continue to make on-time payments and are generally responsible with your credit card usage.

Photo credit: iStock/MBezvodinskikh

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Your credit utilization is the percentage of your overall credit limit that you’re using, and it can have a major effect on your credit score. As your credit usage decreases, it can positively affect your score since it shows you’re responsible with credit. On the flipside, high credit utilization can ding your score as it suggests you’re overspending

If you’re wondering how to lower credit card utilization, there are some steps you can take to do so and help build your credit score.

What Is Credit Card Utilization?

Credit card utilization, or simply credit utilization, is how much of your credit limit you’re using on your revolving credit accounts. You can calculate this percentage by taking the total of your credit card balances and dividing it by your total credit limit.

For instance:

•  Say you have two credit cards with limits of $3,000 and $5,000 respectively.

•  You have a balance of $600 on the first card and $1,000 on the second card.

•  By taking the total of your balances — $1,600 — and dividing it by your overall credit limit — $8,000 — and then multiplying by 100 to get a percentage, you’d end up with a credit utilization rate of 20%.

Why Does Your Credit Utilization Matter?

When it comes to your credit score, scoring models look at various factors, including your credit utilization on both individual accounts and overall. In other words, if your overall credit utilization is high, or one of your revolving accounts has a high balance, your score could be negatively affected.

Considering that credit utilization determines 30% of your FICO® score, which is the scoring model used by most lenders, it’s a major factor that affects your credit score.

What Is a Good Credit Card Utilization Rate?

As a credit card rule, you should aim to keep credit utilization under 30%. While this is the baseline, the lower your credit utilization is, the better. Many financial experts recommend keeping that figure closer to 10%.

A lower credit utilization rate demonstrates to lenders that you are responsible with your credit and don’t appear to rely on credit too heavily.

Tips for Lowering Your Credit Card Utilization

The good news is that you can raise your credit score relatively quickly just by lowering your credit utilization. Here’s how to lower credit utilization.

Paying Down Your Balance

Making payments before the due date arrives or the billing cycle ends could mean your balance goes down before your credit card issuer reports the amount to the credit bureaus. You could even make a payment right after your purchase goes through.

Having a lower credit card balance lowers your credit utilization, even if your credit limit remains the same.

Cutting Down on Spending

Budgeting carefully and reducing your spending could prevent you from racking up excessive credit card debt and getting stretched too thin financially.

However, that’s not to say you can’t use your credit card. Rather, limit your spending to what you can afford to pay off in full that billing cycle. Additionally, if you find your debt starting to balloon, consider pausing your credit card usage until you’ve gotten your balance under control so your credit utilization isn’t pushed higher.

Paying off Credit Card Balances With Personal Loans

If you’re carrying a balance on a credit card, one option to pay it off is taking out a personal loan. You could qualify for a lower interest rate, which can make the debt easier to get a handle on paying off. Plus, a personal loan is an installment loan, which means it won’t count toward your credit utilization.

However, you need to make sure you can still afford the payments and can qualify for competitive rates and terms. Some lenders may charge an application or origination fee — take this amount into consideration when deciding whether it’s worth going this route.

Requesting a Credit Limit Increase

Increasing your credit card limit can lower your credit utilization even if your outstanding balance remains the same. To get a credit limit increase, contact your credit card issuer to request one, either by calling the number listed on the back of your card or logging onto your online account.

Keep in mind that your credit card issuer may not approve your request. You may have to meet certain criteria to qualify, such as having a history of on-time payments and responsible credit usage.

Opening a New Credit Card

Opening a new credit card can increase your overall credit limit and therefore potentially lower your credit utilization. Keep in mind that you most likely won’t know what your credit limit will be until you’ve been approved for the card. 

Plus, submitting an application generally triggers a hard credit inquiry, which could have an effect on your credit score.

Avoiding Closing Unused Cards

It might sound logical to close credit cards that you haven’t been using, but doing so could have negative consequences. More specifically, closing a credit card lowers your overall credit limit, which could increase your credit card utilization even if your credit card balance remains the same.

Recommended: What is the Average Credit Card Limit?

Becoming an Authorized User

You could ask your spouse, family member, or close friend to add you on their credit card as an authorized user. If the primary cardholder maintains a low balance and has a high credit limit, it could lower your overall credit utilization.

Before going this route, however, speak with the primary cardholder to determine whether becoming an authorized user will help your credit score. You’ll also want to be clear on how you plan on using the card, or if you’d rather be a cardholder in name only.

Finding Out Whether Your Issuer Reports to Credit Bureaus

Most credit card issuers will report your payment activity and account balance every 30 days to the credit bureaus, though the reporting date might not coincide with your payment due date. If your card issuer reports your payment activity before you make a payment, it could look like you have a high balance, which could increase your credit utilization rate.

To remedy this, contact your card issuer to determine when it reports to the credit bureaus. Aim to pay off as much of your balance as you can before that, or request a new due date that’s ahead of when your issuer reports to the bureaus.

How Will Lowering Credit Utilization Affect Your Credit Score?

If you lower your credit utilization, you could build your credit score. Remember, your credit utilization is one of the major factors that affects your credit score. Aim to keep your credit utilization well below 30% — try using any of the methods mentioned above to do so — in order to help maintain your score.

The Takeaway

Credit utilization — the percentage of your overall credit limit you use — can have a major effect on your credit score. It’s best to keep your utilization as low as possible, but the benchmark generally recommended is that it should reach no higher than 30%. If your credit utilization rate has crept up, there are some tactics you can try to lower it, from paying down your balance to getting a new card.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How can I fix high credit utilization?

You can decrease your credit utilization by paying off your balances early, asking for a credit limit increase, applying for a new credit card, and cutting down on spending.

How can I keep my credit utilization below 30%?

You can keep your credit utilization below 30% by watching your spending and balances across all your credit cards.

How low should I keep my credit utilization?

It’s best to keep your credit utilization below 30%. That being said, the lower your credit utilization rate, the better.

Does zero utilization hurt your credit score?

Zero utilization doesn’t hurt your credit score. However, 0% utilization doesn’t necessarily help your credit score either, as you can’t demonstrate on-time payments and other positive credit behavior.

Photo credit: iStock/Farknot_Architect

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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It’s often — but not always — possible to deposit cash at an ATM. Whether you can feed bills into the machine can depend on your bank, the particular device you’re using, and other factors. If you are able to make the deposit, fees might be charged.

It’s important to understand the ground rules for depositing cash at an ATM so you can get your money where you want it to go, with a minimum of hassle.

How to Deposit Cash at an ATM

Here are the usual steps for depositing cash at an ATM, once you have your bills counted and ready.

Locate an ATM

In order to avoid wasting time at an ATM that won’t accept cash, it’s a good idea to do a bit of research ahead of time. Log onto the website or app for your financial institution, and look for an ATM locator, which will show you all nearby locations and may also specifically mention which services those ATMs can perform.

It’s worth noting that those convenient ATMs that you may see at your local grocery store or at a concert venue may not accept cash. They are likely there just to provide people with some crisp bills for spending.

Insert Your Bank Card

Once you’ve arrived at an ATM that will accept a cash deposit, you’ll most likely need to use your debit card or other kind of bank card and personal identification number (PIN) to confirm your identity. That will allow you to pull up the ATM’s service options. Some banks may grant access to an ATM using cardless withdrawal technology, which involves using your phone vs. your bank card to complete transactions.

Follow the On-Screen Instructions

Next, you’ll follow the instructions to make a cash deposit. For instance, if you have multiple accounts, such as a checking and savings account, you’ll typically be asked to select the account where the money should be deposited.

Feed Your Money Into the ATM

Ready for the main event? It’s now time to feed your bills into the machine. It’s worth noting that some ATMs may have limits as to how many paper bills they can take at once (perhaps 40 or 50), and ATMs typically don’t take coin deposits. Incidentally, a few older ATMs still require you to put bills into the designated envelopes they provide prior to depositing.

You will usually have the opportunity to confirm the deposit’s amount during this step, which is a valuable checkpoint.

As with any situation where you’re feeding bills into a machine, it’s possible that the machine may spit one back out if it reads it as damaged or potentially counterfeit. And, of course, any time you are handling cash, you want to take note of your surroundings and make sure you feel safe when conducting your transaction.

Sign Out

Last of all, you can ask for a receipt, if you like (you will usually be offered the option of a printed or an email receipt; either can help with record-keeping). Also make sure you are signed out of the ATM before you leave, which is a wise move whenever you use one of these terminals.

Can You Deposit Cash at Any ATM?

You can’t necessarily deposit cash at any ATM. If you are a customer of the bank, you probably can utilize their ATMs, but if a machine is out-of-network, you may or may not be able to deposit your bills there and have them land in your account.

For this reason, it’s important to check to see which ATMs are part of your bank’s network and accept cash. This can save you a wasted trip to an ATM, only to learn that the device doesn’t accept bills from clients of your financial institution…or doesn’t accept bills at all.

If you are permitted to deposit cash, you may have to pay a fee. Currently, out-of-network fees average $4.73 per transaction. In addition, you may have to wait an extra couple of days to have the funds turn up in your account (more on that in a moment).

Can You Deposit Cash at an ATM for an Online Bank?

Customers of online-only banks may be concerned that they won’t be able to deposit cash at an ATM. However, some of the leading online-only banks partner with ATM networks so you can enjoy this aspect of banking. For example, you may find that you can access more than 50,000 global ATMs for free (whether you want to withdraw or deposit cash, or conduct other business) with some of the key players.

Recommended: 12 Top Mobile and Online Banking Features

When Depositing Cash at an ATM, Is It Available Immediately?

At some ATMs, cash deposits are made available immediately, while with other ATMs you may experience some lag between the moment you feed the money into the machine and the moment the funds become available.

The FDIC requires banks to make cash deposits available within a certain amount of time. In the case of an in-network ATM, availability is not required until the second business day after the deposit. At an out-of-network ATM, however, funds don’t have to be made available until the fifth business day, so it’s wise to take that into account.

Again, your bank may have more information available on their website as to their specific policies.

Things to Consider When Depositing Cash at an ATM

Most of the time, depositing cash into an ATM goes smoothly and may happen for free. But there are a couple of scenarios to be aware of and potential hiccups to be prepared for.

Depositing Cash at an ATM That Isn’t Your Bank

As mentioned above, you may or may not be able to deposit cash in an out-of-network ATM. For instance, if you have an account at Bank of America, you probably can’t stick a couple of hundred-dollar bills into a Chase ATM.

What’s more, if you can make a deposit at an out-of-network ATM, there may be fees involved. It will likely take longer to process and become available to use than if you’d stayed in your own network.

If you keep your money at an online-only bank, you may want to stick to their network or make sure your financial institution offers a fee-reimbursement feature. You can usually locate in-network or partner ATMs by checking your bank’s app or website or by calling their customer service number.

Potential Problems

Technology can offer many benefits, such as speed and convenience, but it isn’t perfect. When you are trying to deposit cash at an ATM, you might in rare cases hit a snag. Perhaps the machine won’t accept your bills, or it miscounts the amount deposited.

If an issue like this happens, make sure to note down the details, such as the date, time, location, and what transpired. You can then report the issue to your bank and/or the owner of the ATM to get the matter resolved. If you lost money in this way, you may want to involve the Consumer Financial Protection Bureau to help you get refunded.

Fees

You are unlikely to encounter a fee if you make a deposit at your bank’s ATM. The same can hold true if you keep your accounts with an online-only bank and use their network of terminals.

However, life can get complicated, and you may need to deposit cash when an in-network device isn’t anywhere nearby. In that case, you are likely to incur an out-of-network ATM fee. As noted above, these are currently averaging $4.73 a pop, according to one recent survey, so this can really add up.

Check with your bank ahead of time to get a better grasp of their specific ATM fee policies and avoid these unnecessary fees when possible.

Limits

There can be limits on how much you can deposit at a given time at an ATM. Typically, this isn’t a dollar amount but rather a cap on how many bills can be inserted. For instance, if an ATM allows no more than 50 bills at a time, that might mean you can only deposit $250 if you have $5 bills or as much as $5,000 if you have $100 bills.

Recommended: How to Avoid ATM Fees

The Takeaway

You can usually deposit cash in an ATM in a few simple steps, which can be a convenient way to get money into your checking or savings account. Depending on whether you insert your bills at an out-of-network vs. in-network machine, the transaction may involve fees and potentially a delay in the funds becoming available. It can be wise to do a little research on your options and rely on in-network machines whenever possible.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How do you deposit cash at an ATM?

To deposit cash at an ATM, you’ll need an ATM that accepts cash, your bank card, and PIN. Then you simply follow the directions on the machine’s screen. However, it’s good to research first where ATMs in your network are or how much of a fee will be charged to deposit cash at an out-of-network ATM.

Can you deposit checks at an ATM?

Yes, you can usually deposit a check into an in-network ATM, though some machines may not accept them.

Are there ATM deposit fees?

Whether you will pay to use an ATM varies. Typically, you will not be assessed a fee to use an ATM that belongs to your bank or the network of ATMs it partners with. However, if you use an out-of-network machine for a transaction (withdrawal or deposit), you will likely be charged a fee of a few dollars.

How much cash can be deposited in an ATM?

There may be a limit on the number of bills you can deposit at an ATM vs. a limit on the dollar amount. For example, some ATMs accept no more than 50 bills at a time.

How can I deposit money without going to the bank?

You can often deposit cash at one of your bank’s ATMs or a machine that’s part of your bank’s network. Another method would be to buy a money order made out to yourself and then use mobile deposit to get it into your bank account.

Photo credit: iStock/RgStudio

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

SOBK-Q224-1890292-V1

Checking accounts and debit cards are both key to storing and accessing your money for making everyday payments. Think about how often you use them as you pay bills, grab a latte, and check your balance to see if you can afford some new shoes.

Though they are linked, they are two separate financial tools — and it’s possible (though uncommon) to have one without the other.

What Is a Checking Account?

A checking account is a type of bank account that allows you to access your money when you need it for paying bills or making purchases. Unlike other deposit accounts (like saving accounts), checking accounts allow you to make regular withdrawals by writing checks, swiping your debit card for purchases, or taking money out of an ATM.

Most checking accounts are insured by the Federal Deposit Insurance Corporation (FDIC) or NCUA (National Credit Union Administration), meaning your funds are protected up to $250,000 per depositor, per bank, per ownership category. You can typically fund your checking account through bank transfers and via direct deposit from your employer.

You can also connect your checking account to a peer-to-peer payment app like Venmo or Cash App to send money to and receive money from friends and family. Some banks may even offer built-in payment programs through their mobile apps.

Some checking accounts charge monthly fees while in other situations you can open a free checking account. Banks charging fees for accounts may offer ways to waive the fees. Other “fine print” details to consider when selecting a checking account include minimum balance requirements, overdraft fees, and annual percentage yield (APY).

Recommended: How Much Money Do You Need to Open a Checking Account?

What Is a Debit Card?

A debit card is a form of payment that gives you access to the funds in your checking account.

You can use a debit card online and in person to make purchases, wherever that card is accepted. You can even add your debit card to mobile wallets, like Apple Pay or Google Pay. You typically must use a unique personal identification number (PIN) to use the card for in-person purchases and ATM withdrawals.

Unlike a credit card that allows you to loan money from the card issuer, a debit card only gives you access to the funds in your checking account. If you don’t have enough funds in your account to cover a purchase, the transaction may be declined or you may overdraw the account (and face overdraft fees).

You can also use a debit card to withdraw cash at ATMs. Most banks and credit unions offer a network of fee-free ATMs where you can safely take out cash without incurring charges. You may also be able to request cash back at the point of sale at some businesses when paying with your debit card.

While we typically think of debit cards as a component of a checking account, consumers without a checking account can purchase a prepaid debit card, load funds onto it, and spend it at stores like a bank debit card.

Do You Automatically Get a Debit Card When Opening a Checking Account?

Most checking accounts come with debit cards nowadays, but it’s always a good idea to confirm before opening up a new account. Upon account creation, the bank or credit union will generally send your debit card in the mail. In some cases, you may have to request the debit card.

Not all debit cards are created equal. When looking for a checking account with a debit card, you may want to prioritize one that:

•   Has a large network of ATMs

•   Doesn’t charge fees for card replacements

•   Doesn’t charge foreign transaction fees

•   Offers cash back on debit card purchases.

Can You Have a Checking Account Without Having a Debit Card?

While most checking accounts come with debit cards these days, it’s still possible to encounter a checking account that doesn’t have a debit card. However, you’re more likely to find a checking account that no longer supplies free paper checks to members.

Debit Card vs. Checking Account

Let’s break down the difference between a checking account vs. a debit card.

The best way to think about the difference between checking accounts and debit cards? A checking account is a deposit account for storing and spending your money; a debit card is a common tool to access the money in that deposit account.

Pros and Cons of Checking Accounts

Now that you know how a debit card vs. checking account stacks up, here’s a closer look at checking accounts. These accounts are a staple of personal finance and, as such, offer plenty of benefits to consumers. There are also some downsides to be aware of.

Here are some of the pros and cons of checking accounts:

Pros

•   Easy access to funds: A checking account allows you to make purchases (in person or online), pay bills, and receive direct deposit paychecks.

•   Security: Checking accounts are typically insured by the FDIC or NCUA.

•   Banking benefits: Depending on the checking account, you may enjoy premium features like mobile check deposit, automatic savings tools, and early paycheck access.

Cons

Checking accounts have a specific and necessary purpose for most consumers, but they do have drawbacks:

•   Low or no interest: In terms of checking vs. savings accounts, checking accounts typically have low APYs — if they earn interest at all.

•   Fees: Some checking accounts may have monthly maintenance fees, overdraft fees, account inactivity fees, and other charges that can add up.

•   Minimum balance requirements: Some checking accounts may require you to maintain a specific amount of funds in your account. They may also require a minimum deposit to open the account.

Here are the pros and cons of checking accounts in chart form:

Pros and Cons of Debit Cards

To better understand the difference between a debit card and a checking account, it can be helpful to consider debit cards’ unique features. These cards also have their fair share of pros and cons.

Pros

Advantages of debit cards include:

•   Easy way to spend and withdraw cash: Debit cards are more convenient than paper checks and give you quick access to your cash at ATMs.

•   No risk of debt: Unlike credit cards, debit cards don’t let you spend money on credit. This means you don’t risk overspending and falling into high-interest credit card debt.

•   No fees or interest: Debt isn’t the only risk of credit cards. You also have to worry about annual fees and annual percentage rates (APRs) when opening a credit card. Neither applies to debit cards.

Cons

Debit cards have drawbacks, as well:

•   Less fraud protection: Credit cards may pose more debt risk, but they typically offer better fraud protection than debit cards.

•   Ability to overdraft: Some banks and credit unions charge fees if you accidentally overdraft using your debit card.

•   Daily spend limits: Your debit card likely has a daily spend limit, and it may be less than you think (possibly $300 or $400). Before using your card for a big purchase, you may want to check with your bank to see if they need to increase the limit temporarily.

Take a look at how these pros and cons look in chart form:

Tips for Finding the Right Checking Account and Debit Card

How can you find the right checking account and debit card for you? Each person’s banking needs are different, but here are a few tips to get you started:

•   Think about the features that are right for you: It’s likely that no checking account will tick all the boxes for you, so it’s a good idea to make a list of the most important features of your ideal checking account. Maybe you want an interest-bearing account that also has a cashback debit card, or perhaps you just want a standard account with no monthly fees or overdraft fees. Deciding on your wish list will help you narrow down the options.

•   Ask friends and family: Getting recommendations from people you trust is a great way to instill confidence in any big financial decision.

•   Consider online banking: Online banks can often offer lower (or no) fees and higher interest rates because of their low overhead. With the advent of mobile banking, including mobile check deposit, online bill pay, and P2P payments, you may find that you don’t miss your brick-and-mortar bank — while enjoying the checking and debit features.

•   Bank in one place: It’s possible to have checking and savings accounts at separate institutions, but you may appreciate the convenience of banking in one place (or in one app). If you already have a credit card or savings account with a specific institution, it might be worth researching their checking account and debit card offerings.

Banking With SoFi

Looking for a new checking account with a debit card? Open an online bank account with SoFi. Our Checking and Savings account allows you to unlock a wealth of banking features, including a competitive annual percentage yield (APY), no account fees, automatic savings tools, and cashback on select local purchases when swiping your debit card.

Bank smarter with SoFi, and see why people love the SoFi debit card and Checking and Savings Account.

FAQ

Is a checking account a debit card?

A checking account is not a debit card. Rather, a debit card is a common way for consumers to spend and withdraw cash from their checking accounts.

Can you withdraw cash without a debit card?

It is possible to withdraw cash without a debit card. If your bank has a physical branch, you can go in person to take out funds. Some banks offer ATM cards for ATM withdrawals, and others may even offer cardless ATMs that allow you to access your funds through a mobile app.

Do checking accounts come with a debit card?

Most checking accounts come with a debit card. The bank may automatically send you the card upon account creation, but in some cases, you may have to request the card before the bank will send it.

Photo credit: iStock/Phiromya Intawongpan

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Checking accounts are one of the hubs of most people’s financial lives, and there are many options available. If you’re curious about premium checking accounts, which typically offer many extra perks, you’re in the right place.

In this guide, you’ll learn about some of the pros of premium checking accounts, such as higher interest rates and ATM-fee reimbursements. You’ll also find out about the potential downsides, like the need to maintain a high balance. Read on for details, so you can decide if a premium checking account is right for you.

What Does Premium Checking Mean?

What is a premium checking account? It’s a type of checking account in which account holders are rewarded for meeting high balance requirements or paying higher monthly fees. These rewards may include higher interest rates, fee-free ATMs, free checks, and more.

In some cases, a bank may offer you these perks if you open multiple types of accounts at the same institution — an example would be having both premium checking and savings accounts at a bank. Another common model for premium checking accounts is that the more you keep on deposit, the more incentives you may receive.

What Are the Benefits of a Premium Checking Account?

Those who qualify for a premium checking account may be rewarded with the following benefits:

•   Lower fees for other financial products within the same financial institution

•   Dedicated customer service

•   Higher APYs, or annual percentage yields

•   Free or low-cost wire transfers

•   ATM fee reimbursements

•   Free checks.

These can be attractive ways to encourage customer loyalty, as many financial institutions work to find new ways to enhance their clients’ experience.

Pros and Cons of a Premium Bank Account

Opening a premium bank account might be valuable if you can take advantage of all the benefits offered. That being said, there are some downsides, too. Meeting certain requirements can make this type of account inaccessible to some. Let’s take a closer look at the benefits and the downsides.

Pros

Here are the potential upsides of premium checking accounts:

•   Higher APYs: Premium checking accounts typically come with higher APYs compared to basic checking accounts (which may not accrue any interest at all). That enhanced interest rate means your money earns more money.

•   Waived or lowered fees: In most cases, premium checking accounts will waive fees such as those for out-of-network ATMs, money orders, cashier’s checks, and wire transfers. Depending on the bank and what other accounts you have with them, you may even get lowered or waived fees on exchange rates for ATM withdrawals outside the U.S.

•   Discounted rates on other financial products: It’ll depend on your relationship with the bank (and what other accounts you have in addition to a premium checking account), you could receive lower rates for personal loans or mortgages compared to other customers.

•   Higher transaction limits: You may be able to make larger daily ATM withdrawals, transfers, or debit card purchases.

Cons

Next, consider the possible downsides of a premium checking account:

•   Rates may not be as high as you think: Although you could receive a higher interest rate compared to other types of checking accounts, it may not be as high as what you could get with savings or money market accounts.

•   More stringent requirements: You’ll typically need to maintain a higher minimum balance in your account in order to avoid monthly maintenance fees or to earn interest. For instance, many banks require anywhere from $10,000 to $15,000 or more in your premium checking account. The good news is that the balance requirements may be the total across all your accounts with the same financial institution.

•   Benefits may be tiered: While it varies from bank to bank, you may have to “level up” to an even higher minimum balance to access the best interest rates and other perks.

How Can I Qualify for a Premium Checking Account?

In most cases, all you need to do is to have a minimum amount on deposit in order to open a premium checking account. Some may even require you to open other financial products or allow you to meet the minimum deposit requirements across a number of qualifying accounts.

Some major banks, like Chase and Bank of America, will allow you to meet minimum deposit requirements across different accounts as long as they’re linked.

Recommended: How to Automate Your Personal Finances

Additional Features of a Premium Checking Account

You may want to consider whether having that much money in a checking account is a worthwhile move for you. Consider the following points:

•   Is earning interest a priority for you? If you’re after a checking account that earns a higher amount in interest, a premium checking account may be for you. Keep in mind though that if you may not earn as much as you think you will. For instance, if a bank currently offers a 0.04% APY, on a $50,000 balance, you’re only earning $20 per year or so (how often interest compounds will make somewhat of a difference).

•   How often do you use ATMs? Many premium checking accounts offer more ATM transactions and even waive fees for third-party ATM fees. For those who use ATMs frequently, especially out-of-network ATMs, this perk may not be worth it.

•   Do these perks sync up with your financial goals? Premium checking can be part of a deeper relationship with your bank (often called relationship banking) that offers holistic support for your finances. This includes benefits like discounted rates on other financial products — say, a home loan. If you’re willing to keep all your finances at one bank, a premium checking account might be a good fit and open other doors for you.

Are Premium Checking Accounts Worth It?

To decide if a premium checking account is right for you, consider these points:

•   It can be a smart idea to compare premium accounts to standard checking accounts. You may be able to get many of the same benefits, such as free checks or equivalent interest rates, without stashing as much cash as premium accounts require.

•   Getting a high-yield savings account could be a good option if you want to earn a higher interest rate but can’t meet the large minimum balance criteria required of premium checking accounts.

•   If you want to keep all your banking (including investments and loans, for instance) with the same financial institution and can maintain a high balance across your qualifying accounts, premium checking could be well worth it. This is especially true if you’ll use all the perks like free checks and ATM reimbursements.

By thinking about your financial goals and how you like to bank, you may decide that premium checking is the right move for you.

The Takeaway

Premium checking accounts can be a valuable option for some bank customers. If you can maintain the high balance and can use the rewards offered, it may be a good fit.

For others, a high-yield checking without the high minimum requirements might be a better option. It’s up to you to decide what fits your financial style best.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Is a premium checking account worth it?

A premium checking account may be worth it depending on whether you can afford to meet the higher than usual minimum balance amount and whether you’ll be able to take advantage of all the perks. If you can, it may be a good fit.

What are the benefits of a premium bank account?

Some of the key benefits of a premium bank account is a higher interest rate, waived out-of-network ATM fees, discounted rates on loan products, and overdraft protection. Some may even offer free financial and investing advice.

What does a premium bank account mean?

A premium bank account is a type of account offering extra perks once you meet a minimum balance requirement.

Photo credit: iStock/Charday Penn

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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