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Atm Card - Definition & Advantages of Atm Card | What is Atm Card?


ATM cards, issued by banks, give users access to their accounts and allow them to perform transactions like withdrawals, balance checks, fund transfers, and bill payments without visiting a branch. 

ATM Card Types

ATM cards are mainly of two types: Debit and Credit cards. 

Debit cards draw directly from the user's account, allowing withdrawals, purchases, transfers, and bill payments. 

Credit cards allow purchases up to a certain limit, which must be paid back within a specified period. They can also be used for cash advances and other transactions. 

ATM Card Use

Using an ATM card involves inserting the card in an ATM machine and entering a PIN. Post authentication, users can perform transactions like withdrawals, balance checks, transfers, and more. 

To withdraw cash, select the withdrawal option, enter the amount, and collect the dispensed cash and card. 

To check balance, select the balance inquiry option to view the account balance. 

To transfer funds, select the transfer option, enter the recipient's account number and transfer amount. 


  1. Convenience: ATM cards allow 24*7 financial transactions without visiting a bank.
  2. Accessibility: ATM cards can be used anywhere in the world at any ATM or POS terminal.
  3. Safety: ATM cards reduce the need to carry large sums of cash, minimizing theft or loss risk.
  4. Efficiency: ATM cards eliminate the need for checks, cash, and bank visits, saving time and resources.
  5. Rewards: Some ATM cards offer rewards like cashbacks, points, or miles for purchases.