ATM card - Banking Gurukul, GOLN

What is an ATM card? how does it work? we will know everything in this article below,

An ATM card is a payment card or dedicated payment card issued by a financial institution (i.e. a ban,k) which enables a customer to access their financial accounts via its and others’ automated teller machines (A T Ms) and to make an approved point of purchase retail transactions (i.e. gas stations, grocery, hardware, department stores, etc.)

A T M cards are not credit cards or debit cards. A T M cards are payment card size and style plastic cards with a magnetic stripe and/or a plastic smart card with a chip that contains a unique card number and some security information such as an expiration date or CVVC (CVV). A T M cards are known by a variety of names such as ban,k card, MAC (money access card), client card,

key card or cash card, among others. Other payment cards, such as debit cards and credit cards can also function as A T M cards. Charge and proprietary cards cannot be used as A T M cards. The use of a credit card to withdraw cash at an A T M is treated differently to a point of sale transaction, usually attracting interest charges from the date of the cash withdrawal. Interbank,k networks allow the use of A T M cards at A T Ms of private operators and financial institutions other than those of the institution that issued the cards.

A T M cards can also be used on improvised A T Ms such as “mini A T Ms”, merchants’ card terminals that deliver A T M features without any cash drawer. These terminals can also be used as cashless scrip A T Ms by cashing the receipts they issue at the merchant’s point.

Dimensions for the ATM card.

The size of ATM cards is 85.60 mm × 53.98 mm (3.370 in × 2.125 in) and rounded corners with a radius of 2.88–3.48 mm, in accordance with ISO/IEC 7810#ID-1, the same size as other payment cards, such as credit, debit, and other cards. They also have a printed or embossed ban,k card number conforming with the ISO/IEC 7812 numbering standard.

Uses of ATM

All ATMs, at a minimum, will permit cash withdrawals of customers of the machine’s owner (if a ban,k-operated machine) and for cards that are affiliated with any ATM network, the machine is also affiliated. They will report the amount of the withdrawal and any fees charged by the machine on the receipt. Most ban,ks and credit unions will permit routine account-related ban,king transactions at the ban,k’s own ATM, including deposits, checking the balance of an account, and transferring money between accounts.

Some ATM cards can also be used at a branch, as identification for in-person transactions.

The use of the ATM card for in-store purchases or refunds is allowed only with pre-approved retailers, but not for online transactions.

For other types of transactions through telephone or online ban,king, this may be performed with an ATM card without in-person authentication. This includes account balance inquiries, electronic bill payments, or in some limited cases, online purchases (see Interac Online).

ATM Card networks

ATM cards operate through specific networks. Interlink is just one example of the many ATM networks. Canada’s Interac and Mastercard’s Maestro are examples of networks that link ban,k accounts with point-of-sale equipment.

Some debit card networks also started their lives as ATM card networks before evolving into full-fledged debit card networks such as STAR (Interbank,k Network), and others such as Development ban,k of Singapore (DBS)’s Network for Electronic Transfers (NETS) and ban,k Central Asia (BCA)’s Debit BCA, both of them were later on adopted by other ban,ks (with Prima Debit being the Prima interban,k network version of Debit BCA).

Misuses of ATM cards.

Due to increased illegal copies of cards with a magnetic stripe, 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 by the end of 2010. The “SEPA for Cards” has completely removed the magnetic stripe requirement from Maestro debit cards.