The Difference Between Debit Card and ATM Card
When it comes to financial transactions, using the right kind of card matters. Debit cards and ATM cards may look similar, but they’re actually quite different. Here are the key differences between the two:
Definition
An ATM (Automated Tell Machine) card is a plastic card that allows you to withdraw cash from your bank account through an ATM machine. A debit card, on the other hand, is a plastic card that can be used in various ways including point of sale (POS) transactions, e-commerce purchases, and ATM withdrawals.
Functionality
The main function of an ATM card is to withdraw cash. You can insert your ATM card into the machine, enter your PIN, and withdraw cash from your account. However, an ATM card doesn’t come with the features that a debit card has.
A debit card not only allows you to withdraw cash from ATMs, but it also lets you make purchases online or in-store using a PIN, signature, or contactless payments like Google Pay, Apple Pay or Samsung Pay.
Usage
Another key difference between these two cards is their usage. An ATM card can only be used at ATMs, making it less versatile than a debit card. A debit card, on the other hand, can be used nearly everywhere that accepts card payments. You can use a debit card to pay for groceries, gas, movie tickets, and more.
Protection
Both debit and ATM cards come with fraud protection services that help in cases where the card is lost or stolen. However, debit cards offer more protection than ATM cards. If your debit card is lost or stolen, you can report it to the bank, and the bank will protect you from any unauthorized transactions. With an ATM card, you only have protection for the transactions made at the ATM.
Conclusion
In summary, the key difference between a debit card and an ATM card is their versatility. While an ATM card is limited to cash withdrawals, a debit card offers many more features, including the ability to make purchases and payments. Although both cards offer fraud protection services, a debit card offers more protection. If you’re looking for a card that offers more options for your transactions, a debit card is the way to go.
Table difference between debit card and atm card
| Debit Card | ATM Card |
|---|---|
| Linked to a bank account and can be used to make purchases or withdraw cash | Can only be used to withdraw cash from an ATM |
| Can be used to pay bills or make online purchases | Cannot be used for online purchases |
| May have additional features, such as rewards or cashback programs | Typically does not offer additional features |
| May charge fees for certain transactions | May have lower fees compared to a debit card |
| Requires a PIN to authorize transactions | Also requires a PIN to withdraw cash from an ATM |