109. How does an ATM card differ from a debit card?
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This article is from the Credit cards and Consumer Credit FAQ, by adams@spss.com (Steve Adams) with numerous contributions by others.
109. How does an ATM card differ from a debit card?
An ATM (automatic teller machine) card is a form of debit card, but
you use it in a cash machine by punching in your code number. (In
common speech, "debit card" means the kind that looks like a credit
card, where you sign for purchases.)
The ATM card is a little less dangerous if you lose it, since nobody
can use it to drain your account without your PIN (personal identi-
fication number). Also, most banks limit the amount of cash that
can be withdrawn every day on an ATM card. On the other hand a Visa
or MC debit card lets where a thief clean out your whole account
with one purchase.
By the way, some banks are now issuing combined ATM-debit cards.
Depending on your viewpoint, this gives you the advantages or the
disadvantages of both.
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