ATM Card vs Debit Card

ATM card vs debit card

Automated teller machine (ATM) cards and debit cards can both make life easier and the terms are often used interchangeably. Before applying for either one, you may want to first know what is the difference between an ATM card and a debit card?

What is an ATM card?

ATM cards let you withdraw cash from ATMs instead of withdrawing directly from a branch of the bank.

What is a debit card?

When ATM cards started to have EMV chips so they can be used at POS terminals, the term “debit card” was born. So in essence, a debit card is a newer version of an ATM card that allows to use funds directly from your bank account, whether it's a savings account, checking account, or a payroll account, to pay for your purchases.

How are debit cards better than ATM cards?

Convenience

A debit card can be used to make purchases both online and in person. This is convenient for when you don't have cash on hand. This also allows you to spend anytime, even if it means making late night purchases online. ATM Cards can only be used at ATMs and some Cash-Accept-Machines (CAMs), while debit cards can be used at POS terminals too.

Flexibility

You can use your debit card like an ATM card, allowing you to withdraw from an ATM to get easy access to cash. But you can also withdraw securely without having the physical card with you if your bank provides a cardless withdrawal feature.

How different is a prepaid card from ATM card or debit card?

Prepaid cards essentially have the same function as a debit card. However, it is not considered either as an ATM card or a debit card. As the name implies, you need to transfer funds to it before it can be used. It also doesn't require a maintaining balance, has a monthly deposit limit, and doesn't earn interest.

What is the difference between an ATM card vs a debit card?

So is there really a difference between the two? Other than the EMV Chip, there’s none. The terms ATM cards and debit cards have been used interchangeably since one is the predecessor of the other. This is technically correct since debit cards are the upgraded version of ATM Cards. You could say all debit cards are ATM cards but not all ATM cards are debit cards.

Nowadays, banks in the Philippines only offer debit cards so opening a new account most likely comes with getting a debit card instead of an ATM card.

Get easier access to your money. Open a Metrobank Savings Account today.