E-file your Income Tax Returns for FREE

E-file your Income Tax Returns for FREE

ATM Card

Reviewed by Anjaneyulu | Updated on Sep 30, 2020

Catalogue

Introduction

In earlier days, people used cash for every transaction, whether it is a domestic or an international transaction. With the evolving technologies and adoption of Core Banking Solutions (CBS) by banking companies, there is a tremendous change in the way of interaction between banks and their customers.

What is an ATM Card?

ATM stands for Automated Teller Machine. Similarly, ATM card is a PIN-based card issued by a bank to account holders to use it for various purposes at the ATM.

In addition to using it at ATMs, account holders can use it to make purchases by entering the Personal Identification Number (PIN). ATM cards are generally debit cards.

Why ATM Card is Important?

With ATM cards, the sole function you can perform is withdrawing cash from the ATM. ATM cards use a 4-digit PIN or unique PIN which is linked to your bank account. Upon withdrawal, your bank account balance is reduced in real-time if you withdraw any cash.

While ATM cards do not charge any interest, the most inhibiting factor about them is that you cannot use them everywhere. They have a very limited utility. By this, we can understand that ATM cards are not accepted at all major retail and payment outlets.

Also, another factor to consider about ATM cards is that you might be charged high fees by your bank or by another bank in the name of ATM charges if you withdraw cash from the ATM of a different bank. Also, you cannot utilise the overdraft facility on ATM cards in case of inadequate funds in your account.

What You Should Know About ATM Cards?

  1. Always keep your ATM card in a safe place. It's good to store your card in a card sleeve, which protects the card's magnetic strip.

  2. Secure your PIN but do not never write them on the card or keep a written chit in your wallet/bag.

  3. Avoid using digits from your telephone number or date of birth as a PIN.

  4. Don't leave receipts near the ATM. Verify each transaction in your online banking or through receipts against your monthly account statements.

  5. Don't give your PIN to anyone. Banks, financial institutions, or merchants should never ask you for this information.

  6. Never allow a stranger to assist an ATM transaction even if you have trouble or if your card is stuck.

  7. Check whether there are any fraudulent devices attached to the ATM. If the ATM looks different or appears to have any attachments over the card slot or PIN pad, do not use the ATM and if possible, inform immediately to the bank/financial institution.

Related Terms

Recent Terms