Nowadays, it is quite gruesome to carry a lot of money with us and also the fear of getting it robbed by the thieves, has forced people to keep a larger portion of their savings into the banks. But however, it is very difficult to go to the banks each time to withdraw money. Thus, the banks had introduced the ATM and Debit card service for its customers. Though, most of us are using the ATM and the Debit Cards, but still cannot differentiate between these two.
Below you will find the difference between an ATM card and the Debit card.
Content: ATM card Vs Debit card
|Basis for Comparison||ATM card||Debit card|
|Meaning||ATM card is issued by a bank to allow a customer to withdraw money from his account through the Automated Teller Machine (ATM) any time he wants.||Debit card is issued by a bank to allow its customers to purchase goods and services by making the payment through a card with the help of a swiping machine.|
|Functions||ATM card has less function as compared to a Debit card.||Debit card has many functions.|
|Deduction from account||Whenever you withdraw money from the ATM, the amount gets deducted from the related account.||Whenever you make a payment for the goods and services through a card, the amount is deducted from the account linked to the card.|
|Uses||Balance statement, deposits, withdrawals, transfer of funds, can be done.||Balance statement, deposits, online payment and purchases can be done.|
|Logo||ATM card usually has Maestro or Cirrus or Plus logo.||Debit card usually has Master or Visa logo.|
Definition of ATM card
ATM card is a card made up of plastic, issued by the bank, contains the necessary details about the bank account of the customer. The bank allows its customer to withdraw money at any time with the use of the card through an Automated Teller Machine. For the convenience of the public, the bank has made this facility available to its users 24 hours a day.
ATM card serves the general purposes of withdrawals, balance inquiry through a mini-statement facility and deposits through a procedure. It is also to be noted that whenever you use the ATM for any purpose, the bank sends an alert message to your mobile, confirming that your ATM card has been used. This message helps you to cross-check that the transaction is made by you and not by some unauthorized user.
Definition of Debit card
A debit card is a card made up of plastic, issued by a bank to make a payment for the purchase of goods or services at any time. This facility can be availed by any customer having a bank account. Through a Debit card, the customer can make an online payment or the payment through EFTPOS (Electronic Fund Transfer at Point of Sale). He can also check the account balance and transfer the funds to the account of any other account holder. The Debit card is very well supplemented with the mobile banking service; that helps the customer to get the notifications regarding the transaction made, on his mobile phone.
Key Differences Between ATM card and Debit card
- The ATM card is issued by the bank to allow its customer to have an access to the ATM any time to withdraw money while the Debit card is issued by the bank to allow its customers to purchase goods and services by making the payment through a card.
- The ATM card does not provide the service of Internet banking, whereas the Debit card can be used for the online transactions.
- Normally ATM card consists of the logo Maestro or Cirrus or Plus, while Master or Visa is encrypted on the face of the debit card.
- The significant difference between the two is that the Debit card holder can make a payment at the shops and the shopping mall through his card, but the ATM card lacks such facility.
- Both are made up of plastic.
- Both allows the facility of balance inquiry.
- An alert message is sent to the customer when the card is used.
- The PIN must be entered when you use the card.
- Issued by the bank or a financial institution
- The Bank charges a nominal fee for the use of the card.
ATM card and Debit card both have made our lives much easier, as there is no need to carry hefty cash in our pockets. Also, the banks had opened ATM’s in various places, including the remote locations which allow you to withdraw funds at any time. Apart from this, the inter-banking network is so strong that enables a customer to use any other bank’s ATM to draw money.
On the other hand, Debit card also offers several facilities as discussed above. Nowadays, ATM cum Debit card is also provided by the banks, which provides both types of facilities to its customers.