The main difference lies in their functions:
- An ATM card is strictly for cash withdrawals, deposits, and balance inquiries at an ATM terminal.
- A debit card provides all the functions of an ATM card while also allowing you to make purchases directly in stores (Point of Sale or POS) and for online transactions.
Debit cards are typically linked to major payment networks, giving them wider acceptance for shopping, whereas ATM cards have limited use outside of ATMs.