Every bank provides plastic cards that allow the users to access the funds in the bank account. Most of the banks provide mainly two types of cards, which are, debit cards and ATM cards. The services and facilities provided by both the cards are different from each other.
Debit Card vs ATM Card
The main difference between a debit card and an ATM card is that a Debit card is used for various transactions of goods and services and even withdrawal of cash while an ATM card is only used for withdrawal of cash from an ATM. A debit card allows users to access various mobile banking services while an ATM card does not provide users with any Internet or mobile banking facilities.
Debit cards provide the facilities of net banking and overdraft. The card also offers various discounts and additional benefits. Debit cards have a multi-functional use. Debit card networks are of five main types – MasterCard, UnionPay, American Express, Visa, and Discover.
On the other hand, ATM cards do not provide the facilities of net banking and overdraft. The card does not offer any discount or additional benefit. ATM cards have a single-use. Interlink is the most common example of ATM networks through which the card operates.
Comparison Table Between Debit Card and ATM Card
| Parameters of Comparison | Debit card | ATM card |
| Year of issue | In 1994 | ATM card was first issued in 1967, in London by Barclays |
| Net banking facility | Available | Not available |
| Payment systems | Debit cards are issued by payment systems like RuPay, Visa, or MasterCard | ATM card are issued by payment systems like Maestro or Plus |
| Overdraft facility | Available | Not available |
| Application | To withdraw cash, shop online, pay bills, book tickets, recharge devices, and various other transactions | To transact money from the bank account through ATM |
What is Debit Card?
The debit card is a type of payment card that is used to make purchases in place of cash. A debit card is also known as a check card or bank card and even a plastic card. A debit card holds similarities with a credit card but the point of distinction is that the money should be in the bank account of the cardholder at the time of purchase, which gets transferred to the merchant’s account while paying for the purchase.
A debit card can also be available as a virtual card in some cases. Here the bank does not provide any physical card and only a payment card number is assigned to the cardholder for usage. Most of the cash transactions have been replaced by debit cards. Debit cards are usually made of plastic and some are also of metal and wood.
The front side of a debit card usually contains the bank logo, EMV chip, hologram, card number, cardholder’s name, card brand logo, and the expiration date. The reverse side of the card contains a signature strip panel, a magnetic stripe, and a card security code.
The transactions of a debit card are proceeded in three major ways – EFTPOS (PIN debit or online debit), Electronic Purse Card System, and the offline debit (or signature debit). Debit card networks are of five main types – MasterCard, UnionPay, American Express, Visa, and Discover. Some other common networks include STAR, Pulse, JCB, Solo, Interac, and others.
What is ATM Card?
ATM card is a type of payment card which allows cardholders to access their financial accounts by making purchase retail transactions or operating automated teller machines (ATM). ATM card is also known as a cash card, MAC (Money Access Card), key card, and even client card. ATM card is a plastic card that contains a magnetic strip, a cheap with a unique card number, expiration date, and CVV.
ATM cards have provision for interbank networks which allow the usage of the card at other operators, other than those that issued the card. The dimension of an ATM card is 85.60 × 53.98 mm. The bank card number is printed or embossed on the card which confirms the numbering standard of ISO/IEC 7812.
ATM cards are also used at the branch of the bank for the identification of in-person transactions. The card is also used for in-store purchases or refunds within a pre-approved retailer. It cannot be used for online transactions. The working and operation of ATM cards are through specific networks. Interlink is the most common example of ATM networks.
Earlier ATM cards did not use any chip-based system. But due to the extensive rise of illegal card copies, the European Payment Council developed a Card Fraud Prevention Task Force in the year 2003. This inculcated the application of a chip-and-PIN solution for all the ATM cards and the removal of the magnetic stripe.
Main Differences Between Debit Card and ATM Card
- Debit card is a multi-functional card while an ATM card is used for transactions in ATM (automated teller machines).
- Debit card allows users to access various mobile banking services while an ATM card does not provide users with any Internet or mobile banking facilities.
- Debit cards can be used for payment at retail stores, online shopping websites, or other merchant establishments while ATM cards cannot be used for payment at any type of merchant establishment.
- Debit card is also known as a check card or bank card and even a plastic card while an ATM card is also known as a cash card, MAC (Money Access Card), key card, and even client card.
- Debit cards provide additional benefits and discounts while ATM card does not provide any discount or offer additional benefits.
Conclusion
Most of the banks offer types of card services to their customers. The card types are debit cards and ATM cards. Both the cards are used to access the funds in the bank account. The card can be linked to any type of bank account whether it is a salary account, saving accounts, or even a current account.
Both types of cards differ in the service and facilities provided by them. The distinctions can be evaluated in various parameters. The customers need to know both types of cards, which will help them to make informed decisions.
References
- http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.161.1432&rep=rep1&type=pdf
- https://ideas.repec.org/b/fip/fedkmo/2006agttaadci2.html