Often, we tend to mistake an ATM card and Debit Card to be the same. This is mainly because ATM and Debit Cards are quite similar in terms of their functions and use. However, what we must know is that they are two different cards. An ATM card is a PIN-based card, used to transact in ATMs only. While a Debit Card, on the other hand, is a much more multi-functional card. They are accepted for transacting at a lot of places like stores, restaurants, online in addition to ATM.
Even though most banks these days issue you an ATM cum Debit Card, there are a few differentiating factors between them.
What is the Difference between ATM and Debit Cards?
Here are a few differences that you ought to know about-
ATM Cards
With ATM Cards, the sole function you can perform is withdraw cash from the ATM. ATM Cards use a 4-digit PIN or unique Personal Identification Number and is linked to your bank account. So, your bank account balance is reduced in real time if you withdraw any cash, at given time.
While ATM Cards do not charge any interest, the most inhibiting factor about them is that you cannot use them everywhere. They have a very limited utility. By this, we mean that they are not accepted at all major retail and payment outlets.
Also, another factor to consider about ATM Cards is that you might be charged high fees, by your bank and the other bank in the name of ATM Charges, if your bank and ATM are not the same.
Also, you cannot utilise the Overdraft facility on ATM Cards in case of inadequate funds in your account.
Debit Cards
Easy. Convenient. Hassle Free. These are the three words that describe a Debit Card best. You can use aDebit Cardanytime and anywhere for a variety of reasons. They are multi-functional in terms of utility, and all you will need is your PIN (Personalized Identification Number) to complete your purchase. Debit Cards are tied to your Savings Accounts. Therefore, whenever you make any payment, you will see your funds get deducted immediately upon making the transaction. You can read more on the benefits of a Debit Cardhere.
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FAQs
An ATM card is a PIN-based card, used to transact in ATMs only. While a Debit Card, on the other hand, is a much more multi-functional card. They are accepted for transacting at a lot of places like stores, restaurants, online in addition to ATM.
Is an ATM card the same as a debit card? ›
The difference between ATM and debit cards boils down to their utility. An ATM card can only be used to withdraw cash from ATMs. At the same time, a debit card, in addition to withdrawing funds from ATMs, can also be used to make other transactions such as domestic and international purchases, bill payments, etc.
Can I use a debit card as an ATM card? ›
To easily withdraw from or deposit cash to your checking account, you can use your debit card at an ATM. The first thing you need to do is insert your debit card into the ATM. Next, for security purposes, you will be prompted to enter the PIN number you chose for the card.
What are the benefits of having an ATM card instead of a debit card? ›
These cards can only be used at automatic teller machines. Pros of ATM cards include: You can get cash at any machine, creating flexibility for money management. You can't swipe the card to pay for goods and services, which can help reduce impulse purchases.
Can an ATM card work like a debit card? ›
But you can only use a true ATM card at an actual ATM to perform functions like checking your balance or withdrawing money. In other words, you can't make purchases with an ATM card. A debit card, however, allows you to do everything you can do with an ATM card, plus make purchases.
How does an ATM card work? ›
The Working of ATM Cards
Whenever you use the card at ATMs or for online/offline transactions, money is debited from your linked bank account. For withdrawing cash at ATMs and offline transactions, you will be required to enter your 4-digit ATM PIN.
When did ATM cards become debit cards? ›
Though according to Kansas City Federal Reserve, the first US debit card may have hit the market as early as 1966 thanks to The Bank of Delaware. Debit cards have traditionally trailed behind credit cards, which enjoyed widespread adoption throughout 1950s' America.
Can anyone withdraw money with an ATM card number? ›
Fraudsters can still use your debit card even if they don't have the card itself. They don't even need your PIN—just your card number.
What are the benefits of ATM cards? ›
Users can withdraw cash or make purchases without carrying large amounts of cash, reducing the risk of theft or loss. Efficiency: ATM cards make financial transactions more efficient by reducing the need for paper checks, cash transactions, and visits to bank branches.
Why not to use an ATM card? ›
There's no such protection with a debit card. Debit card authorizations can tie up your money. Gas stations, hotels, rental car companies and other merchants may put a three-day hold on more money than you will actually be spending on a particular transaction. You can't use that money until the hold ends.
What is an ATM card? ATMs or Automated Teller Machines are mostly used to withdraw cash. If a bank allows it, you can also make deposits into an account during and outside regular business banking hours. This card can only be used at ATMs and requires a PIN (Personal Identification Number).
What are the drawbacks of using an ATM card? ›
Some ATMs will charge withdrawal fees, and if you use more than the agreed overdraft limit then the fees tend to be much greater than those incurred by credit card usage. Another disadvantage of debit cards is the fact that they have limited funds, which can slow down business.
Is ATM card the same as debit card? ›
However, what we must know is that they are two different cards. An ATM card is a PIN-based card, used to transact in ATMs only. While a Debit Card, on the other hand, is a much more multi-functional card. They are accepted for transacting at a lot of places like stores, restaurants, online in addition to ATM.
What is another name for ATM card? ›
ATM cards are known by a variety of names such as bank card, MAC (money access card), client card, key card or cash card, among others. Other payment cards, such as debit cards and credit cards can also function as ATM cards.
Do banks still issue ATM cards? ›
Most banks have switched to issuing debit cards instead of only ATM cards. ATM cards can only be used to withdraw from an ATM. Debit cards can function like an ATM card and can be used for point-of-sale transactions.
Are ATM PIN and debit card PIN the same? ›
Yes, it is the same, if you are asking for withdrawal from ATM thru Debit Card. But if you are asking for using PIN for withdrawal from ATM without ATM Card it is different.
