What is ATM Card and How It Works?
August 13, 2019
Automated Teller Machine (ATM) or Debit Cards are now very commonly used by people for withdrawing money from ATMs after the standard banking hours. These cards can also be used for online and offline purchases. Read this post to know what these cards are and how they work.
In the past, the only way to withdraw money from your Savings Account was to visit the bank during the working hours personally. You were required to fill a withdrawal slip, stand in a queue, and then submit the same for withdrawing the needed cash. However, ATM cards completely revolutionised this process.
Introduction of ATM Cards in India
It was in the late 1980s that the Automated Teller Machines (ATMs) and ATM cards were first introduced in India. Over the years, they have only grown in popularity and are now very commonly used by most of the people who have a Savings Account.
If this is the first time that you are looking to get an ATM card, let us enlighten you on the uses of ATM cards, what these cards are and how they work.
What is an ATM Card?
In simple words, ATM cards are payment cards issued by banks. They are linked to your bank account, and you can use them for withdrawing money from ATMs. Most of the ATM cards can now be used for online and offline transactions.
While ATM cards and Debit Cards are now considered to be the same, things were different when they were first introduced. Initially, an ATM Visa Card or other ATM card was only meant to be used at ATMs and not for online/offline transactions.
Debit Cards were then introduced to eliminate this limitation. You can now use debit cards for withdrawing money as well as for online and offline transactions. You can get one by opening a Savings Account at a bank.
Details on ATM Cards
Most of the banks now offer custom cards with the name of the account holder mentioned on the card. Apart from your name, the validity of the card, 16-digit card number, logo of card network, and Card Verification Value (CVV) is mentioned on the card. The latest ATM cards also feature a Europay Mastercard and Visa (EVM) chip.
There are many different types of ATM Cards now available in India. There are actually several ways to differentiate the cards, but one of the most common ways is by the card network. There are now ATM cards of Visa, Visa Electron, Mastercard, Maestro and RuPay cards available in India.
The Working of ATM Cards
ATM Cards are linked to your bank account. Whenever you use the card at ATMs or for online/offline transactions, money is debited from your linked bank account. For withdrawing cash at ATMs and offline transactions, you will be required to enter your 4-digit ATM PIN.
For online transactions, you will be required to enter your ATM card number as well as a 6-digit 3D secure password. Once you get your ATM card, you can then set the ATM PIN and online transaction password online.
Say No to Cash with ATM Cards
ATM Cards eliminate the need for you to visit the bank to withdraw money. Moreover, they also eliminate the need for you to carry more than needed cash when you go out for shopping. With enhanced security, they also make your online transactions completely safe and convenient.
Now that you know a lot of basic ATM card details, you are ready to apply for your first ATM card. Get in touch with a reputed bank to know more about these cards and know the detailed procedure of getting one as quickly as possible.
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