2WithdrawalsPerhaps the most common function of the modern ATM, withdrawals are usually allowed from a user's savings or checking account.
3DepositsSimilarly, most (but not all) ATMs allow deposits to be made to both checking and savings accounts. These deposit functions usually require cash or checks in envelopes, and can sometimes be accomplished by credit card.
4Balance InquiriesAnother common function of the ATM is the ability to check account balance, for savings or checking, and to print out that balance for future reference.
5Account TransfersAccount transfer is a popular function for those who carefully manage the funds in more than one account, and can be used to move funds from one account (for example, a checking account) to another (like a savings account).
6ATM Card InformationAn ATM card gets its name from the Automated Teller Machine. It is issued by banks to their customers so that they have easier access to their money, whether it's from ATM machines, at physical bank branches, or in stores that accept payment from the cards. Customers can use cards to perform withdrawals, deposits or access their own account information.
7What's On ItOn the front of the ATM card is listed three vital pieces of information: Your name, your 16-digit account number, and the month that your card expires. On the back of the card is a magnetic strip that holds information about your card, as well as a place for you to put your signature. Many places will not accept the use of an ATM card without a signature on it. Next to the signature is a four-digit number that represents the last four digits of your account number, and then a three-digit number, representing your Card Security Code. The CDC is important for making online purchases.
8PIN NumberWhen using an ATM or making a purchase at a store, customers will be asked to first slide their card into a card reader. They will then be prompted to put in their four-digit pin number. The pin number is a password that the customer creates (either over the phone or in person at a bank branch) so that they will be the only one able to use the card. Make sure to write down your pin number and keep it in a safe place in case you forget it.
9ActivationWhen you first get your ATM card in the mail, before you use it you must first activate it. To do this, call the toll free number located on a sticker on the actual card itself. It will ask you to type in your account number and PIN number. When you do, your account will now be activated and you can use your card.
10Online PaymentCustomers can also use ATM cards to purchase goods online. To do this, enter your account number when prompted to on the website. You will then be asked to locate the Card Security Code (or CSC) on the card to confirm your purchase. This is three-digit number located on the back of your card.
11SecurityIf you lose your ATM card, make sure to call your bank institution immediately to cancel your card. Thefts by people using someone else's ATM cards are common so it is best to make sure you cancel the card as quickly as you can. After the card is canceled, you will be sent another card in the mail that you will then need to activate before it can be used.
12ATM Card Vs. Debit CardBanks provide many ways for customers to get money and make payments. Two very popular ways are ATM cards and debit cards. Many people use these words interchangeably, but they actually have separate purposes. Your bank may provide a card that is both an ATM card and a debit card, but it's helpful to know the difference.
13DefinitionsATM stands for automated teller machine. An ATM card can be used in one of these machines. ATMs are part of one or more networks, such as Cirrus, NYCE, PULSE, PLUS, Interac and STAR. A debit card can be used in place of using a credit card or writing a check to pay for merchandise. Many banks issue cards that perform both functions.
14DifferencesSome machines are strictly ATMs and allow you to withdraw cash from your account and perform some other basic account functions such as deposits, balance inquiry and transferring money between accounts. These machines require you to enter a personal identification number; ATM cards work with these machines.Debit cards have a number similar to a credit card and can be used in a similar manner, both in person and online, to make purchases. When you do so, the money is withdrawn from your bank account, though this may not happen immediately. Many stores have point-of-sale card-swiping machines that will allow you to use either an ATM card with a PIN or a credit or debit card by selecting the "credit" option.
15SimilaritiesEspecially when making a purchase, ATM and debit cards may seem similar. You swipe the card and the money is taken out of your bank account to pay for the purchase. Many stores now have card-swiping machines that take both types of cards as payment options.
16Benefits of ATM CardsATM card transactions are generally processed immediately in the electronic banking system, so your bank balance will reflect the debit as soon as the transaction is complete. The system can determine whether your account has a sufficient balance to pay for the transaction, thus guarding against an accidental overdraft.
17Benefits of Debit Cards Since debit cards work like credit cards, they can be used online and for catalog purchases or transactions made over the telephone, as well as those made in person. These types of transactions are typically free of any banking fees charged to the owner of the bank account, because the credit card fee is taken out before the money is deposited in the merchant's account, so the merchant absorbs this fee instead of the customer.
18How to use a debit cardWhen you debit card arrives you will also receive a pin number to use with it. This pin number will probably come in a separate piece of mail, separate from your card for safety reasons. Anyone who has access to your debit card and this pin number will be able to use your debit card and spend your money. Do not write the pin number on your card or anywhere you someone would be able to find it.
19Contd.When you are ready to make a purchase with your debit card you can hand your debit card to the cashier and use it as a credit card or swipe it through a debit machine (most stores have these now) and enter in your pin number when it prompts you to do so. Debit machines also give you the option to use the card without putting in the pin number which is another good reason to protect your card. Anyone can swipe it and use it without knowing your pin number. Ask the cashier to show you how to use the card as credit instead of debit if you prefer.
20Don't forget to log the amount spent in your checking log just as you would do for a check. If you don't keep track of what you spend it is a good way to get an overdraft.