ATM Card vs. Debit Card: What’s the Difference?

by

You might have to consider ATM card vs. debit card when opening a new bank account. But many people consider these two cards the same and use the names interchangeably. However, they are different types of cards with distinct purposes and functions.

In this article, we’ll discuss the similarities and differences between ATM cards and debit cards as well as the benefits of each. The distinction is important when it comes to making purchases, withdrawals, and sales. 

ATM Card vs. Debit Card: Similarities

Both ATM cards and debit cards are rectangular pieces of plastic issued by your bank and tied to your checking and savings accounts. This means that they can both be used at an ATM with a PIN to check account balances, transfer funds, withdraw cash, and even make deposits. 

ATM Fees

The fee structure for both is also similar. Both ATM cards and debit cards can be used on any ATM machine. But you can incur ATM usage fees on machines outside of your bank’s network. Many times, ATM usage fees are waived at ATMs that are in-network. But banks can charge fees to cover the cost of communication with an out-of-network ATM. And the owner of the out-of-network ATM machine can impose a surcharge fee on top of that.

Overdraft Fees

You can also incur overdraft fees with each card. Usually, overdraft protection is not automatic—it’s a service you opt into. Overdraft protection service allows you to make purchases and withdrawals beyond your account balance. However, there is a fee charged each time the bank covers the difference.

It isn’t a good idea, however, to rely on overdraft protection service as it is offered only at the bank’s discretion. For example, you might only be covered up to a certain dollar amount, a certain number of transactions, or not at all if you are considered high risk. This can happen if you make too many transactions into overdraft or if you maintain a negative balance that is too high or that is negative for too long.

There is another type of overdraft protection that rolls funds over from your savings account. This protection can be extended to both ATM card and debit card usage if you opt in. There is still a fee for the bank making this transfer on your behalf. However, the FDIC assures it is usually lower than a typical overdraft fee. Savings accounts are also limited to 6 withdrawals per month. 

If you reach your balance limit or are denied overdraft coverage for any of the reasons listed above, both an ATM card and debit card transaction will be declined.

ATM usage is where the similarities end. While both ATM cards and debit cards can be used to access your bank accounts at an ATM, only a debit card can be used to make purchases and payments.

ATM Card vs. Debit Card: Differences

Although ATM cards and debit cards can both be used at ATMs, only debit cards can be used to make purchases. That is why you will see a payment processing network logo, like MasterCard or Visa, on a debit card but not on an ATM card. ATM cards are also limited to national use while debit cards can be used internationally.

So, debit cards are much more common than ATM cards. Debit cards have a much wider range of uses. They can be used at ATMs, for point of sales (POS) transactions, and for paying bills. In 2021, over 80% of Americans aged 15 and older had a debit card.

Debit cards are electronic versions of checks. When you make a purchase with your debit card, the funds are immediately taken out of (or debited from) your checking account. So you should always keep a register of your transactions to ensure you don’t spend more than your account balance.

You can also, however, run your debit card transaction as a credit transaction. All this really does is postpones the debit. A debit transaction made using your PIN number will automatically deduct the funds from your account. Bypassing the PIN for a credit transaction, on the other hand, will take it a few days to process. It might even require a signature.

So which is better: an ATM card vs. debit card?

ATM Card vs. Debit Card: Benefits

Since ATM cards and debit cards have distinct purposes, they also have specific benefits. Here, we’ll consider the benefits of each from a few different perspectives.

Consumer

From a consumer perspective, it is risky to carry either an ATM card or a debit card. Since they are both directly linked to your bank accounts, if they are lost or stolen, then more of your funds are at risk. So, it could be safer to use an ATM card a few times a month to withdraw the cash you need temporarily and leave your card in a safe place the rest of the time.

This can also make it easier to budget, and it can prevent overdraft fees or card declines. Using cash can help make it easier to spend only what’s available without the inconvenience of physically having to document each transaction.

You can do the same with a debit card, of course. It just might be tempting to end up using your debit card for transactions as well which can cause money management issues. Withdrawal limits are also typically higher on a debit card than on an ATM card. So if something happens to your debit card, more of your funds are at risk.

However, you will need a debit card to pay certain bills. If you are enrolled for any online bill payments, you will need to provide a debit card number. 

Could you have both cards? Absolutely. Just ask your bank. And make sure you understand the fee structure because each card will have it.

Merchant

As a merchant, you can only accept debit cards, or cards associated with a network like MasterCard or Visa, as a form of payment. However, if you have an ATM machine on-site, ATM cards could bring you more surcharge income if customers have to withdraw cash to make purchases or payments. 

It can be disappointing to turn away a customer who only has an ATM card. But hopefully you can direct them to an ATM machine in your store. This is one of many reasons why it’s a good idea to have an ATM machine on-site—you experience less missed sales.

ATM Owner

As an independent ATM deployer (IAD), you reap nothing but benefits from both ATM and debit cards. When either is used on your ATM to make a withdrawal, you earn the surcharge fee. Of course, the same concept applies: if someone has a debit card, they might not need an ATM if they can simply use the card to make a purchase.

Conclusion

ATM cards and debit cards are both convenient ways to access your bank accounts at any time. You avoid being restricted to bank hours or facing long teller lines. However, if you are looking for a card you can use to make purchases or pay bills online, you are going to need a debit card. Especially if you don’t have a credit card.

ATM cards do not offer as much functionality as a debit card. Therefore, most banks will automatically issue you a debit card when you open a bank account. In the past, you might have received an ATM card initially. 

The preference is up to you. But remember that even though you and others might refer to debit cards as ATM cards, the two do have distinct purposes.

Hyosung Innovue: Hyosung ATM Company is Rebranding

by

Hyosung ATM machines are top of the line. They compete with Genmega, Hantle (Tranax), and Triton ATM companies. They’ve successfully secured their place at the top since the late 1990s. This is due in large part to their history of developing innovative technology and durable, reliable products. 

Now, they’ve gone even farther in their innovations by providing an even better human experience. The result: Hyosung Innovue.  

Who Is Hyosung?

Hyosung ATM company is a South Korean company that has made a name for itself in the ATM industry through its innovation, creativity, and technology in the production of next-generation ATMs. Hyosung ATMs have been known worldwide since 1997. Nautilus Hyosung ATMs were introduced to the United States in 1998.

We’re sure you’ve heard of them.

Hyosung ATMs have a reputation for being the most reliable, durable, and flexible ATMs on the market. Based out of Texas, Hyosung is one of the United States’ highest valued organizations in the ATM industry. Owning all of their intellectual property, they have always been able to bring new technology to the market faster than their competitors. 

Hyosung entered the U.S. market in 1998 with the first small-footprint retail ATM. They deployed thousands of cash recycling ATMs while other companies were only in the piloting stage. Since Covid-19, Hyosung has met sanitation concerns with their industry-leading disinfection protection. And with certifications in 10 key core banking applications, it’s no wonder Hyosung is the leader in core integration.  

Partners with 4 out of 5 of the top banks in the U.S., Hyosung is still the leading ATM self-serving solutions marketplace for both financial services and retail industries. They offer an extended set of transactions, alternate authentication methods, customized bank rules, and no network fees, bypassing the ATM network directly to the bank’s core banking application. 

Investment in research and development has made Hyosung the fastest growing manufacturer of ATMs in the world.The Hyosung ATM company prides itself on its innovation, creativity, and technology in the production of next-generation ATMs. 

For 25 years, Hyosung has been one of the U.S.’s highest valued organizations in the ATM industry. Now, they’re upping their game even more.

Best Hyosung ATM Machines

The top Hyosung ATM machines on the market are the Hyosung Halo II, the Hyosung Force (2800SE), the Hyosung 1800SE/1800CE, the Hyosung 2700CE, and the Hyosung 4000w. 

Hyosung 4000w

The Hyosung 4000w exemplifies the small-footprint ATM machine. At only 18.8” high, 25.3” wide, and 8.7” deep, it offers the largest screen (8”) for its size. This machine can be mounted almost anywhere (table, counter top, wall) and therefore is a great option for small businesses or any business with limited floor space. 

ADA compliant out of the box, no ADA upgrades are required as long as it’s mounted according to height requirements. With a 500 note cassette, the Hyosung 4000w best supports low-traffic locations.

Hyosung 2700CE

On the other hand, the Hyosung 2700CE is one of the best options for high-traffic locations. It has a higher cash-load capacity than most other machines can handle accommodating up to three removable cassettes.

Hyosung 1800SE/1800CE

The Hyosung 1800SE/1800CE is a free standing ATM machine with one of the smallest footprints. It is a good option for locations with limited floor space while also offering a 1,000 note cassette. For these reasons, the Nautilus Hyosung 1800 is among the best ATM Machines made for the retail market.

Hyosung Force

While it offers a wireless mounting bracket that accommodates wireless communication, the most noteworthy feature of the Hyosung Force is its 12.1” screen. This makes it a great machine for locations with dim lighting since it can easily catch the attention of customers. And the integrated topper has three brightness control settings. 

Hyosung Halo II

Finally, the Hyosung Halo II was designed to bring in customers. It has the sleekest appearance and gets its name from the literal halo of light surrounding the keypad. But attractiveness isn’t all it offers. 

Replacing the discontinued original Halo, the Halo II has been designed with long-lasting features and parts manufactured to lessen the impact on the environment. However, its components still work with most other Hyosung retail models, providing the owner with a fleet of interchangeable parts.

So what is Hyosung doing these days? Rebranding.

What is Hyosung Innovue?

Hyosung Innovue is the only manufacturer of ATM machines and teller cash recyclers (TCRs) in North America. Hyosung Innovue retains the original Hyosung values of inspiring innovative recycling technology, branch transformation, and engineering innovation for both financial and retail industries.

Better known as Hyosung America, this subsidiary of South Korea, Hyosung Inc., announced a new brand identity in January of 2023: Hyosung Innovue. Hyosung is a technology leader of self-service solutions in hardware, software, and banking services with over 30 years of experience in the industry. So why change?

The past year, Hyosung has been hard at work becoming a human experience maker. The goal? To improve day-to-day interactions. Pioneers in financial and retail ATM solutions, Hyosung is now aspiring to bring their “platform of integrated solutions to new verticals including hospitality and travel” says Hyosung America CEO, Sanghwan Kweon.

How? By bridging the physical and virtual worlds. Innovue represents innovation and vision. We anticipate the unveiling of several new game-changing products and solutions soon as Hyosung Innovue promises to improve banking, retail and hospitality, and consumer experiences. 

New Banking Experiences

Hyosung has introduced the Hyosung Series 9, its most advanced, bank-grade, eco-friendly recycling ATM machine designed to accommodate high volumes.

In addition to the Series 9 is the Connect Series. This series allows bankers to conduct most of their processes remotely including the collection of identification, filling out applications, gathering signatures, and closing deals.

New Retail and Hospitality Experiences

Hyosung Innovue promises faster and more frictionless retail experiences. Hyosung’s latest technologies facilitate self-ordering kiosks, self-checkout, and point of sales (POS) systems.

TangoCafe has been specifically designed to benefit the food and beverage industry. TangoCafe is a next-generation cafe that automates and optimizes cafe experiences via highly efficient space utilization and remote management based on robotics, AI, and IoT.

New Customer Experiences

TangoLife makes human experiences at ATMs more fluid, seamless, and equitable. Spanning banking, retail, hospitality, gaming, hospitality and healthcare industries, Tango offers convenience to people on the go.

And TangoNet is an API-based network that supports financial transactions between consumers and FinTech service providers.

Move Forward with Hyosung ATMs

As if Hyosung America wasn’t doing enough, now they are changing the game. Innovators since the 1990s, it should come as no surprise that Hyosung is on the forefront of change in the human ATM and banking experience. 

Want to know more about Hyosung ATM machines? See how they compare to Genmega machines here. Want to shop for more brands of ATM machines? Check out our ATM Buyers Guide. Just getting started in the ATM business? Contact us today!