ATM Card vs Debit Card: How They Compare

Q: Is an ATM card the same as a debit card?

No, an ATM card is not the same as a debit card. An ATM card may not have the ability to make point-of-sale transactions over a major card network. Debit cards, meanwhile, may operate on the American Express, Discover, Mastercard, or Visa networks.

Q: Can you use your ATM card as a debit card?

An ATM card is not a debit card, but you may use your ATM card to withdraw cash from an ATM. Using an ATM card to withdraw funds is similar to using a debit card for the same purpose.

Q: Do you need an ATM card if you have a debit card?

Your personal circumstances may dictate whether you need an ATM card. You may open multiple bank accounts, including a checking account, savings account, and money market account. It may be right for you to have an ATM card and separate debit card if you have multiple bank accounts. ATM cards and debit cards can both be used for withdrawing and depositing funds.

ATM Card vs Debit Card: Are They the Same?

Sulaiman Abdur-RahmanUpdated March 6, 2023

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

An ATM card is very similar to a debit card. When comparing a typical ATM card vs. debit card, the biggest similarity is that either card may be used to withdraw cash from an automated teller machine. The main difference between ATM card and debit card transactions is the underlying funding source.ATM cards are typically associated with savings accounts, and debit cards are typically associated with checking accounts. Another difference between ATM and debit card transactions is that ATM cards may not operate on the Mastercard® or Visa® network. Below we compare how an ATM card vs. debit card are similar and different.

What Is an ATM Card?

An ATM card is a financial instrument that banks, credit unions, and federal savings and loan associations may issue to customers with savings accounts or money market accounts. You may use the card at ATMs to withdraw funds from your savings or money market account.Is an ATM card a debit card? No, an ATM card is not a debit card. A debit card is typically associated with a checking account, whereas an ATM card is typically associated with a savings account or money market account. Debit cards may also have greater flexibility in withdrawing funds or making point-of-sale transactions in retail stores.ATM cards may not have the ability to make POS transactions over the American Express®, Mastercard, or Visa networks. ATM vs. debit card instruments may both feature unique card numbers with a three-digit or four-digit card verification code. Recommended: Checking Accounts vs Debit Cards

How Do ATM Cards Work?

How ATM cards work is comparable with how debit cards work at automated teller machines. You may insert your ATM card into an ATM card reader and enter your personal identification number or PIN to withdraw cash from your savings account or money market account.In addition to withdrawing cash, an ATM card may allow you to do the following:

Check your available savings vs. money market account balance
Deposit cash into your linked bank account
Transfer funds between your savings vs. checking account

What Is a Debit Card?

A debit card is a financial instrument and payment card that can make POS transactions at retail establishments. Cardholders may also withdraw funds from an ATM using their debit cards. Is an ATM card a debit card? No, a debit card is not an ATM card.As mentioned earlier, a debit card is typically linked to a checking account, whereas an ATM card is typically linked to a savings account or money market account. Unlike revolving credit card accounts, debit vs. ATM card instruments are linked to deposit accounts held with a bank, credit union, or thrift institution.Recommended: Guide to Credit Cards vs Debit Cards

How Do Debit Cards Work?

Debit cards work as an instrument for withdrawing funds or making transactions. Depository institutions — including banks, credit unions, and federal savings and loan associations also known as thrifts — may issue debit cards to checking account holders. Cardholders can make debit card transactions online, in person, or over the phone. One difference between ATM card and debit card transactions is that debit cards may operate on the American Express, Discover®, Mastercard, or Visa networks. When comparing debit vs. ATM card instruments, the latter may not have the ability to make point-of-sale transactions at retail outlets.

ATM Card vs Debit Card

The below table compares ATM vs. debit card transactions and highlights the difference between ATM and debit card activity:

ATM card	Debit card
Can be used to withdraw cash from an ATM	Can be used to withdraw cash from an ATM
May be linked to a savings account or money market account	May be linked to a checking account
May not have the ability to make POS transactions through a major card payment network	May have the ability to make POS transactions over the American Express, Discover, Mastercard, or Visa networks
Cardholders may face excessive transaction fees if they make more than six transfers or withdrawals during a one-month statement period	Cardholders may have daily ATM withdrawal limits and daily POS transaction limits restricting the card’s 24-hour spending power

ATM Card vs Debit Card Usage & Fees

Here are some of the fees that cardholders may face when using an ATM card or debit card:

ATM fees for using a nonproprietary ATM unaffiliated with your depository institution
Excessive transaction fees if your ATM card exceeds any transaction limitations during a monthly statement period
Overdraft or nonsufficient funds (NSF) fees

Pros and Cons of ATM Card vs Debit Cards

The below table highlights some of the pros and cons of an ATM card vs. debit card:

ATM card pros	ATM card cons	Debit card pros	Debit card cons
Cardholders can withdraw cash from an ATM	The card may have no ability to make POS transactions over a major card network	Cardholders can make POS transactions at retail establishments over a major card network	Cardholders may have daily withdrawal and POS transaction limits restricting the card’s 24-hour spending power
Cardholders may use the card to deposit funds into their savings or money market account	Cardholders who transfer or withdraw funds may face excessive transaction fees if they exceed a monthly transaction limit	Cardholders can withdraw funds from an ATM	Cardholders may face NSF fees if the account has insufficient funds to cover a preauthorized card payment
The card is typically linked with a savings or money market account, not revolving credit	The card may be unable to make transactions online or via telephone	The card is typically linked to a checking deposit account, not revolving credit	The card may not carry the same benefits that you may get when using a rewards credit card

Recommended: A Guide to Cardless ATMs

Which Is Right for You?

Your personal circumstances may dictate whether an ATM card or debit card is right for you. Customers who open savings accounts may have the option of requesting an ATM card. Customers who open checking accounts, meanwhile, may receive a debit card that can make POS transactions and ATM withdrawals.You may earn interest with a top savings account, and an ATM card may give you a financial instrument for depositing funds into your savings account through an ATM.Debit cards can typically make payments over a major card network, but debit cards may not offer rewards akin to a rewards credit card.

Getting an ATM or Debit Card

It’s possible to open multiple bank accounts and get an ATM card for one bank account and a debit card for another.There are many types of bank accounts you may consider. You can get an ATM card linked to a money market account or savings account and a debit card linked to a checking account.The process of opening a bank account is relatively straightforward if you’re an adult with proof of identity. If you get an ATM card or debit card, you may use either card for withdrawing cash or depositing funds.

The Takeaway

ATM cards and debit cards may allow you to withdraw a limited amount of funds from your bank account. ATM cards are typically linked to a savings account or money market account, while debit cards are typically linked to a checking account. Savings accounts can offer competitive annual percentage yields (APYs).If you’re looking to earn interest on your savings, Lantern by SoFi can help. Our online banking marketplace allows you to compare APYs and choose a bank account that’s right for you.Compare high-interest savings accounts with Lantern.

Frequently Asked Questions

Is an ATM card the same as a debit card?

Can you use your ATM card as a debit card?

Do you need an ATM card if you have a debit card?

Photo credit: iStock/South_agency

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About the Author

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and served as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.

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