unveiled a new debit card for ATM customers.

The new EasyLink Card is being mailed to ATM cardholders and will function like an "electronic'' chequing account, replacing ATM cards.

When a cardholder purchases an item using the card, the amount will be automatically debited from his account, provided the funds are there.

The card carries a $20 annual administration fee.

But that fee can easily be offset, Bank of Bermuda card services manager Mr.

David Lema said.

Cardholders whose primary account is a chequing account will receive a rebate equivalent to one percent of the amount purchased locally on their cards.

"Rewards programmes of this type have proven very popular worldwide in the case of credit cards but are quite unique to debit cards,'' said Mr. Lema.

"The rebate on any particular transaction may not amount to much but when you add it up at the end of the year, you'll find you've saved quite a lot.'' Customers will also save cheque-buying and cheque-writing charges, he said.

"We think this is a very exciting product.

"Their chief advantage is their convenience,'' bank senior vice president or retail banking Mr. Alan Richardson said.

EasyLink is accepted by about 1,200 merchants in Bermuda.

The debit card can be used at any Bank of Bermuda ATM and any ATM worldwide bearing the VISA or PLUS symbols and at any VISA merchant location worldwide.

A debit card permits cardholders to make on-the-spot purchases and provides merchants with security and immediate payment, the bank said.

At the purchase point, the card functions like a credit card as transactions are completed by swiping the card through an electronic reader which confirms that funds are available to make the purchase.

The EasyLink card differs from a credit card in that it directly debits the cardholder's bank account, acting like an "instant cheque''.

The bank anticipates the card will reduce the need for written cheques.

The card does not require a personal identification (PIN) number for purchases but a PIN number is still needed for any ATM transaction.

The card also includes: An initial $1,000 per day purchase limit which can be adjusted and a $500 daily ATM cash withdrawal; Automatic fraud protection up to $2,000 and full protection once a cardholder has notified the bank that card has been lost or stolen; Travel insurance; All customers will receive their cards with a three-month free trial period.

"The introduction of the card to Bermuda represents a logical extension of the revolution brought about by electronic banking.

"ATMs can be found in use around the world and the machines have become a daily fact of life in Bermuda as well,'' the bank said.

"There is no question that electronic banking is the way of the future.'' The Bank of Butterfield, which earlier this year announced the development of the Maestro debit card, is amid a phasing in use of that card.

Release to the public is anticipated early in the new year.

NEW CARD SERVICE -- Bank of Bermuda senior vice president, retail banking, Mr.

Alan Richardson (left) and the bank's manager, card services, Mr. David Lema, as well as the bank mascot Bob D. Lion, yesterday announced the bank's new debit card.