ATM Card

An ATM card is a plastic card issued by a bank that allows customers to access their accounts at ATMs for tasks like withdrawing cash or checking balances. In some countries, it can also be used for retail purchases at certain approved stores.

  • Differences from Debit and Credit Cards: Although they look similar, ATM cards are different from debit and credit cards. However, most debit and credit cards also work as ATM cards, which has become common since the 2010s.

Features of an ATM Card

  • Size and Shape: The standard ATM card is the same size as other payment cards (85.60 mm x 53.98 mm) with rounded corners, following international standards.
  • Components: It usually has a magnetic stripe or a chip that contains the card’s unique number and security information, like the expiration date and CVV.
  • Other Names: ATM cards are also known as “bank cards,” “cash cards,” or “client cards.”

Uses of an ATM Card

  1. ATM Transactions:
    • Allows cash withdrawals, balance checks, and fund transfers at the bank’s ATMs and, in many cases, at other banks’ ATMs via interbank networks.
    • Each withdrawal generates a receipt showing the amount and any fees if applicable.
  2. Account Access at Branches:
    • ATM cards can sometimes be used as ID for in-person banking at a branch.
  3. In-store Purchases:
    • Some ATM cards allow purchases at pre-approved retailers, but they usually cannot be used for online shopping.
  4. Telephone and Online Banking:
    • ATM cards can also be used for online balance checks, bill payments, or limited online purchases (like through Canada’s Interac Online service).

ATM Networks and Connections

  • Interbank Networks: Many ATM cards can be used across a network of ATMs, not just the bank’s own machines. This interconnectivity allows access to more ATMs for convenience.
  • Examples of Networks:
    • Interac in Canada and Maestro by Mastercard are two well-known networks connecting ATM cards to ATMs and point-of-sale terminals.
    • STAR and NETS: These are examples of networks that started as ATM-only networks but expanded to support full debit card functions.

History of ATM Cards

  • The first ATM cards were launched in 1967 by Barclays Bank in London, marking the beginning of automated banking.