What is the difference between an ATM Card and Debit Card?
ATM cards and debit cards are often confused due to their similarities, but they serve distinct purposes. While both allow access to your bank account, the scope of usage, features, and security options vary significantly.
- Technology is reshaping the way we make transactions.
- In the past, before debit cards, credit cards, or ATM cards, people had to carry cash everywhere to make payments.
- Carrying cash was cumbersome and unsafe, as it increased the risk of theft or robbery.
- Today, we live in an age of cashless convenience.
- Banks have introduced payment instruments like debit cards and ATM cards.
- These instruments have revolutionized the way people access and use their funds.
Key Differences Between ATM and Debit Card
Debit Card | ATM Card |
Scope of Usage | |
A debit card allows you to not only withdraw money but also check your account balance, get a mini statement, change your card PIN number, register for mobile banking, make payments online and at POS terminals. | An ATM card will allow you to withdraw money, check your balance statement, transfer funds to another account. |
Account Deduction | |
Every time you make a payment with your debit card, the amount will be deducted from the account that is linked to your debit card. | When you withdraw money using an ATM card, the money gets deducted from the account that is linked to the ATM card. |
Logo | |
Debit cards usually carry a Visa or MasterCard logo. Some cards are now being issued under the RuPay payments system also. | ATM cards will mostly carry the Cirrus, Plus or Maestro logo. |
Internet Banking | |
Debit cards provide the facility of internet banking to allow users to make payments online. | ATM cards do not offer the facility of internet banking. |
Online Shopping / POS Payments | |
Debit cards can be used for making online payments at e-commerce sites or at merchant establishments which support card payments. | ATM cards cannot be used to make payments online or at merchant establishments. |
With a widespread network of ATMs in India, having an ATM or debit card means that one will have easy access to cash any time they need. This eliminates the need to carry cash around, hence adding to our safety. While the benefits of a debit card overlaps all the benefits offered by an ATM card, both cards are equally useful in their own right.
What is an ATM Card?
- An ATM card is simply a plastic card which is issued by a bank to an account holder, enabling them to withdraw money from ATMs using the ATM card.
- The card holds the bank account related details of the cardholder, who can withdraw money from an ATM using this card 24x7.
- In addition to cash withdrawals, the ATM card also allows cardholders to check their account balance by requesting for a mini statement at the ATM.
- For every ATM transaction done by the cardholder, the bank will send an SMS regarding the transaction to the cardholder's registered mobile number to notify them about the transaction and also help prevent any unauthorized usage.
What is a Debit Card?
- A debit card is similar to an ATM card, except that it allows users to do much more than just withdraw cash and check account statements. A debit card too is made of plastic and is issued by a bank where the individual holds an account.
- The card holds information pertaining to the cardholder's bank account and enables them to make payments for different kinds of purchases at any time.
- A debit card allows users to not only make payments online but also via EFTPOS (Electronic Fund Transfer at Point of Sale) with a simple swipe.
- In addition to withdrawing money, users can also carry out other functions such as checking their account balance and transfer funds to another bank account of the same bank or a different bank.
- Cardholders will get timely SMS alerts for any transaction done with their card to allow them to keep track of account activity and also keep an eye for unauthorized transactions.
FAQs on ATM vs. Debit Card
- Is ATM Card and Debit Card Same?
No, ATM cards enable users to withdraw money from ATMs using the ATM card, whereas debit cards allow users to do much more than just withdraw cash and check account statements like online payments and other purchases.
- How to use an ATM card?
To use an ATM card, insert it into the ATM, enter the required information such as the withdrawal amount, account type, and PIN, and then proceed. Finally, collect the cash from the ATM.
- Is it safe to share the CVV number?
No, it is not safe to share your CVV number with anyone. Sharing your CVV number can lead to the misuse of your ATM, debit, or credit card. It is advised to keep your CVV number confidential.
- Can I use my ATM card for online purchases?
Generally ATM cards can only be used at ATMs to withdraw cash and check an account balance. Online and in-person purchases can be made with a debit card.
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