Since its introduction over 20 years ago, the ATM (automated teller machine) card has become part of everyday life, and people are using these cards millions of times each day. Today, changes in technology are allowing people to use the now-familiar ATM cards in new ways that are reshaping the way we handle our money.

ATM cards can give you more control if used wisely:

With an ATM card and a PIN - or personal identification number - you can virtually set your own "branch hours," depositing and withdrawing money from your accounts whenever you wish at your bank or credit union. What's more, most ATM cards already give you access to your money at ATMs located not only at all of your bank's locations, but also at other banks and in stores, airports, office buildings, and street corners across the United States and worldwide.

Your ATM card is becoming even more useful:

But wide access to ATMs is just the beginning. Technology is enabling banks and credit unions to introduce new services that allow you to pay for things by making your ATM card work like a check. This latest improvement can offer conveniences and money management benefits over cash and checks.

This article can help make you smarter about ATM cards:

As you read this brochure, you'll gain a better understanding of how to take advantage of the conveniences and features of shopping with your ATM card. And you'll find the information you need to use this new service wisely. If you have one of the more than 200 million ATM cards in circulation today in the United States, you may want to take it out of your wallet and refer to it as you read along.

The Beginning - Getting Cash At ATMs:

The first ATM cards gave consumers access to their checking, savings, and share draft accounts only at teller machines owned by their bank, credit union, or savings and loan. People commonly call this kind of card an ATM card, cash card, or banking card, or they use the name that their bank, credit union, or regional network has given to the card.

When "regional ATM networks" were created, they linked together the ATMs of different institutions and offered consumers access to their money in other neighborhoods and nearby cities, towns, and states. (A list of many of these ATM networks' names and where they operate appears near the end of this brochure.) At the same time, two national networks Cirrus_ and Plus_ emerged, expanding ATM card access to cash, first nationwide, then around the world. Currently, these are the only two brands that offer a full range of ATM services worldwide.

ATM cards provide a convenient way of getting cash, making deposits and transfers, and verifying account balances. It is also easy to tell where you can use the card by simply matching the logos on your ATM card with those displayed on the ATM itself.

The Next Step - Paying With ATM Cards:

More recently, many ATM cards have been enhanced so that you can shop with the cards at merchants that sign up with the same networks that give the cards wide access to ATMs. (A list of many of these shopping service networks also appears near the end of this brochure.) Currently there is only one international service, called Maestro_, that lets cards work at participating merchants both in the United States and in more than 50 countries.

Grocery stores and gas stations were among the first retailers in the United States to install the small number pads, also called PIN pads, that you may have noticed at the checkout counter or on the gas pump. It is these devices that make shopping with many ATM cards possible.

The Latest News - Shopping Wherever Some Major Card Brands Are Accepted:

Another ATM card service makes ATM cards more useful by greatly expanding the number of retail locations that accept the cards for payment. ATM cards with the logo of one of two of the major card brands MasterCard or Visa can be used to make purchases anywhere these cards are accepted. Today, these kinds of cards are accepted at some 3 million places in the United States and 9 million more worldwide. Currently, these are the only two major card brands that offer this service.

If you have the logo of one of these card brands on your ATM card and want to use it for shopping, your ATM card basically works like a check. This kind of card is often called a money card, cash-and-check card, check card, or debit card, or it can have a special name given to it by your bank or credit union. Regardless of its name, this kind of card is still also your ATM card. Typically, this kind of card does not require the use of a PIN to make a purchase. You may already carry one of these cards. Look at your card to find out.

Matching The Logos:

Just as the various logos that appear on ATM cards tell you where they can be used to get cash or make banking transactions at ATMs, they also indicate where your card can be used to make purchases. Simply match the logos on your card with those you see displayed at the entrance to the store or at the cash register. Or just ask whether the store accepts your ATM card.

Depending on which logos you find on your card and whether the store has installed PIN pads, your purchases can be handled in one of two ways: either you will punch in your PIN, just as you would at an ATM, or you will sign for the purchase, as you would with a credit card.

Making A Purchase:

Let's say you've planned to buy a desk lamp. You need all your cash for other things and don't have your checkbook with you. At the entrance to the store, you notice an ATM network logo that matches the logo on your card. You decide to use your ATM card to pay.

When you present the lamp to the cashier, you will be asked how you would like to pay for the purchase. You offer your ATM card. The cashier will confirm that your card is accepted by the store, and if it is, the following will occur: 1) You will be asked to slide your card through a slot that reads the information contained in the magnetic stripe on the back of your card; 2) the cashier will then enter the amount of the purchase; 3) you will punch in your PIN, or secret code; and 4) the cashier will press a key that initiates an automatic phone call to your bank or credit union. This confirms that the money is available in your account. Once confirmed, your bank or credit union automatically deducts the purchase amount from your account, just like a check. You will receive a receipt of the transaction, if you want one, when the sale is completed. Make sure you record and subtract this amount from your account immediately.v

When A Major Credit Card Logo Is On Your ATM Card:

If you have an ATM card that also has on it one of two of the major credit card logos mentioned previously, your purchase will be handled as if you were using a credit card, except for three important differences:

• First, the purchase amount will be deducted automatically from your account like when you write a check rather than being billed to you at the end of the month.
  
  
• Second, typically, you'll pay no interest charges, since you're using your own money on deposit, not borrowing it. (However, there may be other fees associated with using this card, an issue addressed later in this brochure.)
  
  
• Third, you will usually sign for the purchase instead of punching in your PIN. However, since this is your ATM card, if a store has installed PIN pads to accept your PIN, and it accepts one of the other logos on your card, the store clerk may ask you to use your PIN instead of signing.
  
  

You Can Only Spend What You Have:

When you use your ATM card, whether to withdraw cash or make purchases, you are using your own money that is on deposit at your bank or credit union. Naturally, you can only use as much money as you have available. If you have an overdraft line of credit attached to your account and your purchase with the card exceeds the amount available on deposit, your bank or credit union will charge interest on the amount you borrow from your overdraft.

There May Be Daily Spending & Withdrawal Limits:

Many banks and credit unions set daily limits on ATM purchases and cash withdrawals, as a deterrent to the use of stolen or fraudulent cards. Often, these two limits are different and each may vary widely, from a few hundred dollars a day to the entire amount available in your account. You should ask your bank or credit union whether your ATM card will have daily withdrawal and spending limits and, if so, what they will be.

While limits of this kind may seem like an inconvenience, they are there to safeguard you and your money from unauthorized use of your account. They can also serve to govern your daily spending, helping you to be more disciplined in managing your money and your spending habits.

So Keep Track Of Your Spending:

Always make sure to keep your receipts, and record your purchases in your checkbook immediately to prevent overdrawing your account. It's important to remember that regardless of whether you use your PIN or sign your name, all of your withdrawals and purchases will be automatically deducted from your account

If It's Not Offered Automatically, You Can Ask About It:

Most banks and credit unions across the country offer ATM cards. They are usually connected to a checking or share draft account. When you open an account, you may automatically be given an ATM card. But if you haven't been offered a card, you can ask for one.

You may also want to ask about any additional services available on the card.

For example, most ATM cards can be used for cash withdrawals and other transactions at ATMs in the United States and around the world. Your bank or credit union may offer with your account the additional service that allows you to use your ATM card to make purchases by using your PIN or signing a receipt. You May Need To Apply For Some ATM Cards.

In the case of an ATM card with a credit card logo on it, your ability to obtain this card will depend on the practices of the individual bank or credit union. The list below contains the kinds of things a bank or credit union considers to determine whether you qualify for this kind of service. You may be required to provide additional information on an application and undergo a credit check.

• The length of your relationship with the bank or credit union
• The average balance and status of your account
• The number of times per year, if any, you overdraw your account
• The number of banking products and services you use
• Your credit history

The use of ATM cards naturally involves costs to provide the services. As a result, there may be fees associated with your use of the card. These vary, depending on your relationship with the institution and whether you are withdrawing cash or making purchases.

If a fee is charged at all, it can vary widely. For example, you could be charged a few cents, such as a dime, every time you use the card, or you could be charged a flat monthly fee, such as one dollar per month, or a combination of such fees. In some cases, fees are waived based on the amount you keep on deposit at your bank or credit union. But, keep in mind that fees can be higher or lower than those cited here. Check with your bank or credit union.

Fees Must Be Disclosed To You:

Along with knowing your available balance, you should be aware of any charges for using the card. Fees are established and charged by the banks and credit unions that issue the ATM cards. If a fee is charged, your bank or credit union must fully detail these fees when you get your card. Every time a fee is charged by the bank or credit union issuing the card, the fee will appear on your monthly statement.

When an ATM card is used to make purchases, a retailer may add a fee to your purchase total. If this happens, the store is required by law to disclose this to you in a display at the checkout counter. In this case, the fee is added to your purchase amount, not listed separately on your statement. Questions To Ask When You Sign Up For A Card:

Before you use your ATM card to withdraw cash or shop, you should ask your bank or credit union about the costs associated with ownership and use of the card. Here are some questions you might ask:

• What are the monthly or annual fees for this card?
  
  
• What are the "per use" fees when using this bank's or other banks' or credit unions' ATMs?
  
  
• What are the "per use" fees when using the ATM card to shop?
  
  
• How can I avoid any of these fees?
  
  

Two features can make using ATM cards safer than cash and checks. First, their use is covered by federal regulations that protect both consumers and the institutions that issue the cards. Second, technology protects the information about your account.

It's smart to be aware of these regulations and protections. Here's a brief summary of the safeguards that come with your ATM card and what you must do to take advantage of them. You're Protected If Your Card Is Lost Or Stolen And If Someone

Uses Your Card Fraudulently:

If you report a lost or stolen ATM card within two business days of discovering the loss or theft, and report immediately any unauthorized uses of your ATM card that you find on your monthly statement, your liability is limited by federal regulations to $50. If you do not report the loss or theft within two days, you could be responsible for up to $500.

If you suspect that your ATM card has been used fraudulently, you must report it to your bank or credit union within 60 days of receiving the statement on which the questionable activity appears. If you don't act promptly, you could be liable for the full amount that the unauthorized user was able to withdraw.

You're Protected From Bookkeeping Errors: