ATM card
Encyclopedia
An ATM card is a card issued by a bank
, credit union
or building society
that can be used at an ATM
for deposits, withdrawals, account information, and other types of transactions, often through interbank network
s.
Some ATM cards can also be used:
ATM cards are typically about 86 × 54 mm, i.e. ISO/IEC 7810 ID-1 size.
Unlike a debit card
, in-store purchases or refunds with an ATM card can generally be made in person only, as they require authentication through a personal identification number
or PIN. In other words, ATM cards cannot be used at merchants that only accept credit cards.
However, other types of transactions through telephone
or online banking
may be performed with an ATM card without in-person authentication. This includes account balance inquiries, electronic bill payment
s or in some cases, online purchases (see Interac Online).
In some countries, the two functions of ATM cards and debit cards are combined into a single card called a debit card or also commonly called a bank card. These are able to perform banking tasks at ATMs and also make point-of-sale transactions, both functions using a PIN. Canada's Interac
and Europe's Maestro
are examples of networks that link bank accounts with point-of-sale equipment.
Due to increased card fraud with magnetic stripe cloning, the European Payments Council
established a Card Fraud Prevention Task Force in 2003 that spawned a commitment to migrate all ATMs and POS applications to use a chip-and-pin solution until the end of 2010. The "SEPA for Cards" has completely removed the magnetic stripe requirement from the former Maestro debit card
s, and the savings banks have announced that they will ship their debit cards without a magnetic stripe beginning in 2012.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
, credit union
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
or building society
Building society
A building society is a financial institution owned by its members as a mutual organization. Building societies offer banking and related financial services, especially mortgage lending. These institutions are found in the United Kingdom and several other countries.The term "building society"...
that can be used at an ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
for deposits, withdrawals, account information, and other types of transactions, often through interbank network
Interbank network
An interbank network, also known as an ATM consortium or ATM network, is a computer network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks....
s.
Some ATM cards can also be used:
- at a branch, as identification for in-person transactions
- at merchants, for EFTPOSEFTPOSEFTPOS is the general term used for debit card based systems used for processing transactions through terminals at points of sale. In Australia and New Zealand it is also the brand name of the specific system used for such payments...
(point of sale) purchases
ATM cards are typically about 86 × 54 mm, i.e. ISO/IEC 7810 ID-1 size.
Unlike a debit card
Debit card
A debit card is a plastic card that provides the cardholder electronic access to his or her bank account/s at a financial institution...
, in-store purchases or refunds with an ATM card can generally be made in person only, as they require authentication through a personal identification number
Personal identification number
A personal identification number is a secret numeric password shared between a user and a system that can be used to authenticate the user to the system. Typically, the user is required to provide a non-confidential user identifier or token and a confidential PIN to gain access to the system...
or PIN. In other words, ATM cards cannot be used at merchants that only accept credit cards.
However, other types of transactions through telephone
Telephone banking
Telephone banking is a service provided by a financial institution, which allows its customers to perform transactions over the telephone.Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability...
or online banking
Online banking
Online banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.-Features:...
may be performed with an ATM card without in-person authentication. This includes account balance inquiries, electronic bill payment
Electronic bill payment
Electronic bill payment is a feature of online banking, similar in its effect to a giro, allowing a depositor to send money from their demand account to a creditor or vendor such as a public utility or a department store to be credited against a specific account...
s or in some cases, online purchases (see Interac Online).
In some countries, the two functions of ATM cards and debit cards are combined into a single card called a debit card or also commonly called a bank card. These are able to perform banking tasks at ATMs and also make point-of-sale transactions, both functions using a PIN. Canada's Interac
Interac
Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. The Association was founded in 1984 as a cooperative venture between five financial...
and Europe's Maestro
Maestro (debit card)
Maestro is a multi-national debit card service owned by MasterCard, and was founded in 1990. Maestro cards are obtained from associate banks and can be linked to the card holder's current account, or they can be prepaid cards...
are examples of networks that link bank accounts with point-of-sale equipment.
Due to increased card fraud with magnetic stripe cloning, the European Payments Council
European Payments Council
The European Payments Council was founded in 2002. It calls itself "the decision-making and coordination body of the European banking industry in relation to payments". The main task of the EPC is the development of the Single Euro Payment Area. The 74 members are banks and banking associations....
established a Card Fraud Prevention Task Force in 2003 that spawned a commitment to migrate all ATMs and POS applications to use a chip-and-pin solution until the end of 2010. The "SEPA for Cards" has completely removed the magnetic stripe requirement from the former Maestro debit card
Maestro (debit card)
Maestro is a multi-national debit card service owned by MasterCard, and was founded in 1990. Maestro cards are obtained from associate banks and can be linked to the card holder's current account, or they can be prepaid cards...
s, and the savings banks have announced that they will ship their debit cards without a magnetic stripe beginning in 2012.