How does an ATM card typically function at a point-of-sale?

An ATM card functions at a point-of-sale by being processed like a credit card, which often requires a signature for verification. When an ATM card is used in this way, it allows the cardholder to make purchases directly from their bank account, deducting funds in real time. The use of a signature adds an additional layer of security, ensuring that the person making the transaction is indeed the authorized user of the card.

The ability for an ATM card to be processed at the point of sale is contingent on the capabilities of the card and the merchant's terminal. In many instances, especially with certain types of ATM cards that have a Visa or Mastercard logo, they can be accepted for purchases similarly to credit cards. This versatility enables greater convenience for consumers who prefer using their ATM cards for transactions rather than withdrawing cash first.

Understanding how ATM cards interact with point-of-sale systems helps clarify the card's role beyond mere cash withdrawal, demonstrating its functionality in a broader range of transactions.