ATM Card Basics & Advices
ATM card (also known as bank card, client card, key card or cash card) is very common bank card. This page will show you a definition of ATM card, some overview, the types of cards, its usage, limitations, fees, and more.
Definition
ATM card is a money card card issued by a bank, credit union or building society used mainly for paying offline purchases and keeping cash safely in bank. It's a card used in an automated teller machine (ATM) which may access a credit or a debit account to complete banking inquiries and fund transfers.
Overview
ATM cards are the most common card used world wide. The main purpose of ATM card is for people to access to their money inside their bank account. The term key card is commonly used to refer to ATM card also because of that, open to door to your bank.
Although bank card a common term for ATM card too, however it's more generic and include debit card and credit card, which have totally different set of features.
Usage
It can be used:
- at an ATM for deposits, withdrawals, account information, and other types of transactions, often through interbank networks;
- at a bank branch, for the same as above, but with more options;
Some bank cards can also be used:
- at a branch, as identification for in-person transactions
- at merchants, for EFTPOS (point of sale) purchases
Depends on the bank and user account setup, ATM card can also be used for other types of transactions through telephone or online banking without in-person authentication. This includes account balance inquiries, electronic bill payments or in some cases, online purchases (see Interac Online). However this require user passwords as mean of authentication.
Limitations
Unlike a debit card, in-store purchases or refunds with an ATM card can generally be made in person only, as they require authentication through a personal identification number or PIN.
In other words, ATM cards cannot be used at merchants that only accept credit cards.
International Variations
In some countries, the two functions of ATM card and debit card are combined into a single card called a debit card or also commonly called a bank card. These are able to perform banking tasks at ATM's and also make point-of-sale transactions, both functions using a PIN. Canada's Interac and Europe's Maestro are examples of networks that link bank accounts with point-of-sale equipment.
Security
Magnetic stripe cloning can be detected by the implementation of magnetic card reader heads and firmware that can read a signature embedded in all magnetic stripes during the card production process.
This signature known as a "MagnePrint" or "BluPrint" can be used in conjunction with common two factor authentication schemes utilized in ATM, debit/retail point-of-sale and prepaid card applications.
Fees
ATM card is cheaper than any other type of money cards. They don't have hidden fees. The common fees include:
- Monthly fee, which could be waived based on certain conditions;
- Overdraft fee, when you withdraw/pay more money than you have;
- International ATM fee, when you withdraw money from outside the country;
- Transaction fee, when you take money out too many times a month, more than the allowance.
- Reissue fee, when you lose your card and need a new one.
All those fees stated above are in no way close to what the bank charges for prepaid cards and credit cards.
Earnings
ATM card attach to bank account, which actually give you interest. Some saver accounts give very high interests that could cover all the costs and even give you profits.
Our Advices
First advice: You need an ATM card, definitely. You should not carry $10,000 which could be so easily rob, instead carry a card that's hidden inside your small wallet.
If you are looking for an ATM card, then you also should consider visiting dozen of banks looking at dozen of account options of each bank to find out the account with highest interest rate with the lowest fees. You won't be the winner, but you will be the earner.
