ATM Card - Definition & Advantages of ATM Card | What is an ATM Card? (2024)

FAQs

ATM Card - Definition & Advantages of ATM Card | What is an ATM Card? ›

This card can only be used at ATMs and requires a PIN (Personal Identification Number). All withdrawals using an ATM card are immediately deducted from the customer's account. If a card is lost or stolen and the consumer reports it before any fraudulent charges are made, there is no liability.

What is an ATM Card? ATM stands for Automated Teller Machine. Similarly, ATM card is a PIN-based card issued by a bank to account holders to use it for various purposes at the ATM. In addition to using it at ATMs, account holders can use it to make purchases by entering the Personal Identification Number (PIN).

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.

An ATM card lets you withdraw cash from your bank account at an ATM machine. A debit card lets you withdraw cash from an ATM machine and purchase items in-store and online.

Debit cards come with both benefits and drawbacks. Debit card advantages include flexibility, security, and the ability to use them almost anywhere. Debit cards can help some consumers manage money. Debit card cons include a lack of features, such as cashback rewards and additional protections.

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.

ATM stands for an “Automated Teller Machine”. An ATM is a computerized device that enables individuals to conduct various banking transactions without the need for a human teller. It provides a convenient way to access and manage our bank accounts, even outside the banking hours.

Your ATM PIN is never written or printed on your debit card for security reasons. Instead, banks provide it to you separately through secure channels. By following these guidelines and keeping your ATM PIN confidential, you can ensure the security of your financial transactions in the Indian context.

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.

For example, criminals may be able to attach skimming devices that can steal your personal identification number (PIN) or account number. Visiting your bank to use the ATM could reduce some of the risks if the machine is not easily accessible to those who aren't customers or is monitored by bank security cameras.

What is the biggest con to using a debit card? ›

If you overspend, you could get hit with costly overdraft fees: If charges to your debit card cause your checking account balance to go negative, you could suffer overdraft fees and other steep charges that far exceed the potential costs of using a credit card.

Although Mastercard and Visa cards are accepted almost everywhere in the globe, Visa cards have a few more advantages. Even with a Visa card at the most basic level, you can access advantages like stolen or lost card reporting, urgent card replacement, emergency cash disbursem*nt, roadside dispatch, and zero liability.

A fraudster can steal money from you with just your debit card number and CVV. In many cases, that's all the information they need to enter at checkout to make payments online. Any deduction from your bank account, whether a purchase or cash withdrawal, is money you lose.

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.

Debit Card is an electronic plastic card or a bank card which can be held by any person who has a bank account, and it can be used instead of cash while purchasing goods or rendering services, as well as, they can withdraw cash anytime and at anyplace from an ATM.

The correct option is A Automated Teller Machine. ATM stands for Automated Teller Machine.