What is an ATM card?
ATMs or Automated Teller Machines are mostly used to withdraw cash. If a bank allows it, you can also make deposits into an account during and outside regular business banking hours. This card can only be used at ATMs and requires a PIN (Personal Identification Number).
All withdrawals using an ATM card are immediately deducted from the customer’s account.
If a card is lost or stolen and the consumer reports it before any fraudulent charges are made, there is no liability. If a missing card is reported within 2 days of fraudulent activity, then the maximum liability is $50.
If a card is reported lost or stolen more than 2 days but less than 60 days after it is missing, the consumer can be held liable for up to $500 of the loss. After 60 days, the consumer can be held responsible for the entire amount that is missing from their account, as well as any accounts that might be linked to it.
But my ATM has a Visa or MasterCard logo, what does that mean?
This is the most confusing type of card. This card can be used as an ATM card or at the point of purchase as a debit card or credit card. No matter how the card is used, it will be automatically deducted from your checking account.
If the card is used as a debit card, a PIN is usually requested. The purchase is immediately deducted from your checking account.
If the card is swiped and credit is chosen at the register, a PIN is usually not required. In this case, even though it was swiped as a credit card, it is still considered a debit card transaction. While it may take a few days, the purchase price will be deducted automatically from your checking account.
Remember, whether a debit card is swiped as a debit or credit transaction, the purchase will be automatically deducted from the consumer’s checking account, but it could take a few days for a credit transaction to clear your account. That means it’s up to you to keep a mental record of the transaction and deduct it from your checking account balance the day of the purchase until the withdrawal has been made from your account.
Otherwise, you risk causing an overdraft on your checking account.
Visa and Mastercard branded debit cards have the same deadlines as ATM cards for reporting fraudulent activity: if reported within 2 days, the maximum liability is $50. After 2 days, the liability increases to $500. If the consumer waits 60 days, then they may lose their entire account plus any linked accounts.
What is a credit card?
Credit cards allow a consumer to purchase goods and services by borrowing against an approved line of credit. It is a loan. Purchases made during the month are billed to the credit card holder, and you will pay the bill at a later date.
Should you be unable to pay the entire balance due, then the credit card company charges you interest.
If the payment is late, the credit card company may also charge late fees and revoke promotional interest rates.
Unlike an ATM or ATM/Debit cards, all charges, as well as any cash advances, are not automatically deducted from your checking account, unless specific arrangements are made through the bank.
Credit cards carry some additional protections that debit and ATM cards do not have. If a credit card is lost or stolen, under the Fair Credit Billing Act, the maximum liability is $50. If the missing card is reported before any fraudulent charges are made, there is no liability at all.
Type of Card | Immediate Withdrawal from a bank account | Receive a bill and pay at a later date | Liability if lost or stolen |
ATM | Yes | No | Max of $50 if reported within 2 days; $500 if reported within 60 days; entire contents of account/linked account if reported after 60 days. |
ATM/Debit Card with Visa or MasterCard logo* | Yes | No | Max of $50 if reported within 2 days; $500 if reported within 60 days; entire contents of account/linked account if reported after 60 days. |
Credit Card (American Express, Discover, MasterCard, Visa) | No | Yes | $50 maximum |
* When purchasing, you must choose whether the transaction will be a debit or credit transaction. If it is swiped as a credit card transaction, the money may not be deducted for several days.
Picture this. It’s Saturday morning. After a grueling week at work, the weekend is finally here. It’s bright, it’s beautiful, and now you are ready for some fun! All that stands between you and the greatest weekend ever is a quick trip to the ATM. Lost in your thoughts about the day ahead, you hurry to your car, race to your local Webster banking center and run to
the ATM to grab some cash. As you head back to your car, something seems amiss. You have the cash, but…you left your card in the machine! So you sprint back to the ATM, but it’s too late; the machine has already swallowed your card (for your protection, of course!) Trust us; we’ve all been there before. And the last thing we want to do is stand between you and your awesome
weekend. So here are a couple tips to help get you back on track after the ATM eats your card with nothing lost other than a few extra minutes! If the branch is open,
with the proper ID, we may be able to retrieve your card right there on the spot! Unfortunately, not all of our terminals are serviced by Webster bankers, but no worries…if we can’t retrieve your card; we can still help by issuing a temporary card until we can get you a replacement. If it is after hours or you are using an ATM that is not near a banking center, things can get a little trickier, but don’t fret. Give us a call at 800-325-2424 and one of our bankers will gladly help you get a new card in your hand as soon as possible! So next time the ATM machine is hungry and eats your card, you’ll be armed with this information to get back on track to having an amazing day.
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