What is an ATM card?

An ATM (Automated Teller Machine) card is a plastic card issued by a bank or financial institution to its customers. It allows the cardholder to perform various banking transactions, primarily at ATMs and sometimes at pointofsale (POS) terminals. Here are the key features and functions of an ATM card:

1. Cash Withdrawals: The primary function of an ATM card is to enable cash withdrawals from ATMs. Cardholders can visit an ATM, insert their card, enter their Personal Identification Number (PIN), and withdraw cash from their linked bank account.

2. Balance Inquiries: ATM cards also allow cardholders to check their account balances at ATMs. This feature helps users monitor their available funds.

3. PINBased Transactions: Many ATM cards can be used for PINbased transactions at POS terminals. By entering their PIN at the point of sale, cardholders can make purchases and have the transaction amount debited directly from their bank account.

4. ATM Deposits: Some ATMs also accept deposits, allowing cardholders to deposit cash or checks into their bank accounts. Not all ATM cards support this feature, and it depends on the bank's policies and the type of ATM.

5. Fund Transfers: Some banks allow ATM cardholders to transfer funds between their accounts (e.g., from savings to checking) or make payments to linked accounts through ATMs.

6. Account Access: ATM cards provide account access 24/7, allowing users to perform transactions outside of regular banking hours.

7. Secure Access: The use of a PIN adds a layer of security to ATM card transactions, helping to protect cardholder accounts.

8. Linked Accounts: ATM cards are typically linked to a specific bank account, such as a savings or checking account, and may have limited access to other accounts held by the cardholder.

9. Network Compatibility: Most ATM cards are issued under major card networks like Visa, MasterCard, Maestro, or local payment networks. This determines where the card can be used and how it's processed.

10. International Use: Depending on the card's network and the bank's policies, some ATM cards may be usable internationally at ATMs and POS terminals. Cardholders may incur currency conversion fees for international transactions.

It's important to note that the exact features and capabilities of ATM cards can vary depending on the issuing bank and the type of account associated with the card. Additionally, some ATM cards may also function as debit cards, allowing cardholders to make signaturebased transactions at POS terminals, while others are solely for ATM transactions.

To use an ATM card, cardholders must keep their PIN confidential and follow security best practices to protect their account from unauthorized access or fraud.