Consumers are more concerned than ever when it comes to protecting their money. Whether they decide to forgo online purchases, check their recent purchases every week or carry only cash, trends in spending have proven that consumers are willing to do whatever it takes to keep financial loss at bay. Consumers have increasingly adopted debit cards over the past decade due to their convenience and benefits. Sometimes even the credit card vs debit card argument is brought up too! However, some have begun favouring ATM cards, perceiving them as a safer alternative. To help weigh the options, here is a comparison of the pros and cons of debit cards versus ATM cards.

Acceptance.

The first major difference between debit cards and ATM cards is how they are accepted by merchants and vendors worldwide. Most debit cards now come equipped with a major credit card logo, usually Visa or MasterCard, which allows them to be employed at any merchant which is part of the Visa or MasterCard credit network. Debit cards eliminate the need for a credit card in this way since the user can still have access to their own money but without carrying around inordinate amounts of cash. An ATM card, on the other hand, is not accepted on nearly the same level as most debit cards. A consumer with an ATM card cannot use it, for example, to pay for meals at restaurants, for electronics at a retailer or for entrance into an entertainment venue. Instead, ATM users must be content with the only function that their cards have: to withdraw cash from an ATM or other cash machine.

Security.

The security between a debit card and an ATM card is vastly different. Because most debit cards are emblazoned with a major credit card logo, the transactions that are initiated with debit cards often do not require use of the card holder’s personal identification number, or PIN. Most of the time all that a debit card user needs to do is simply swipe their card and their purchase has been completed. This, however, can work against the debit card user if their card is lost or stolen since the thief will not need to know the user’s PIN number and can easily swipe the card on their own to make a purchase. With an ATM card, however, a PIN number is critical in order to withdraw cash; without it, the transaction will be terminated. In this way, there is a trade-off which exists between debit cards and ATM cards in that while the debit card is able to be used almost anywhere, they are less safe as a result.

Convenience.

While a debit card may be less secure than an ATM card, most consumers are willing to take the risk due to the sheer convenience of a debit card. The ability to use their card at most merchants without first having to stop at an ATM machine and withdraw cash saves invaluable time and energy on the part of the account holder. Furthermore, debit card users count it as an added bonus that, if they do require cash at any time, they are still free to employ their cards at an ATM and do so. In this way, a debit card carries the functionality of an ATM card but with the accessibility of a credit card, albeit without the cash advance fees of the latter.