Digital banking has been steadily on the rise, making it easy to access your accounts and manage your personal finances from anywhere.
ATM cards are used to deposit and withdraw cash at an ATM. Bankrate explains.
What is an ATM card?
An ATM card is a bank card used to access an ATM. Virtually everyone who has a checking account also has a card that can be used at an ATM, in the form of a debit or credit card. However, some banks also issue ATM-only cards, which can’t be directly used for making purchases.
When someone opens a deposit account with a bank, she’ll frequently be given a payment card to access the funds in the account. In most cases, the card will be a debit card or check card, or, in the case of a line of credit, a credit card. In addition to making purchases, all of these cards function as ATM cards, meaning that they can be used to withdraw funds at an ATM.
Some banks may issue an ATM-only card, which can’t be used to make purchases; it can only be used to perform regular ATM functions, although some exceptions apply, such as when the payment processing company has a terminal installed at the retailer. All debit cards are ATM cards, but not all ATM cards are debit cards.
As with other payment cards, ATM cards are secured with a personal identification number (PIN). ATMs allow customers to deposit and withdraw cash as well as check their balance, but customers may have to pay a fee when using an ATM card at an ATM not associated with the issuing financial institution.
Get a great checking account using Bankrate’s comparison tool.
ATM card example
Scott just opened up a new checking account at a local branch of a bank. After making an initial deposit, the bank gave him a debit card to use to make purchases as well as use at an ATM. He can use the card at any ATM, but he gets assessed a $3 fee every time he uses it at the ATM of another bank.
More From Bankrate
11 min read Sep 28, 2022
Some of the most common ways to send or receive money electronically include ACH, EFT, and wire transfers.5 min read Sep 27, 2022
Native American-owned banks and credit unions help underserved communities by providing access to bank accounts, loans and other financial services.7 min read Sep 27, 2022
Here’s a convenient way for Apple device users to transfer money between friends and family.5 min read Sep 19, 2022
Here’s what to know about the checking and savings account alternative.4 min read Sep 19, 2022
The acronym is probably an essential piece of your well-being. Here’s why.3 min read Sep 13, 2022
Knowing your financial needs and goals can help you choose where to keep your money.6 min read Sep 12, 2022
Looking for a nearby Wells Fargo location or ATM? Here’s how to find the closest ones.2 min read Sep 12, 2022
Wire transfer fees can be expensive, but here are ways to send money for less.5 min read Sep 09, 2022