Money doesn't actually talk. We do.

Why Don’t They… Let Me Have an ATM Card That Isn’t a Debit Card? (Turns Out A Lot Will, but Not Schwab Bank)

Two months ago, I was annoyed to discover that the rule makers behind Charles Schwab’s High-Yield Investor Checking account wouldn’t give me an ATM card that had the debit-card portion of it shut off (in other words, a card that only worked as an old-fashioned ATM card). My only option was to keep the Visa debit card that showed up with the welcome package for my new Schwab checking account.

(I explained why I wanted this option in the first Why Don’t They post on this topic here.)

At the time, A Schwab spokesman told me that what I was asking for was not a standard product across the banking industry. That didn’t seem right to me, so we looked into it.
We (OK, Mary did the legwork on this one — Thanks Mary!) polled a bunch of the biggest banks, and sure enough, every one that responded will indeed let you have an ATM card without the Visa or MasterCard logo (and functionality) on it. Bank of America and Key Bank confirmed that they do this but didn’t comment further. Here’s what a few other banks said:

Chase: We do offer ATM cards without the Visa logo but find most customers prefer the ability to use the card wherever Visa is accepted. It’s important to note that ATM cards without a Visa or MasterCard logo can still be used for purchases using a PIN at most major retailers.

HSBC: [The customer] has to request it. Our standard is that when you open a checking account, you get a MasterCard, but if you say that you don’t [want that option]… we are willing to accommodate that. It takes about a week.

Wachovia: Wachovia does offer an ATM [only] card. Customers can request an ATM card during the account opening process or anytime thereafter. They can call 1-800-WACHOVIA or visit any Wachovia Financial Center.

Wells Fargo: Customers who have a checking or savings account can request an ATM [only] card. We believe in providing our customers with choices – including the ability to have an ATM Card or a Check Card.

Schwab has spent a lot of money recently on an aggressive ad campaign for the High-Yield Investor Checking offering, noting how much better Schwab treats its banking customers than competitors do. (One of the zippier bits of copywriting: “I get nothing for what I put in. I get charged for what I take out. [Remind me again why I still bank here?]“)

On balance, Schwab’s claims are true, and I’m sticking with the bank and its 4.0% interest rate. But a company with banking ambitions the size of Schwab’s still ought to give people like me the same ATM-card options that other big grown-up banks do.

– Ron Lieber