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Short answer: they're the same size and, in practice, mean the same thing to most collectors today — both describe a 2.5" × 3.5" miniature artwork. The difference is historical, not physical.
Coined for eBay listings in the early 2000s, when artists needed a category name for miniature original art being sold to collectors. The name itself bakes in "for sale" — Cards, Editions, and Originals are all things a collector buys and keeps.
The older term, rooted in a mail-art tradition where artists made small cards specifically to trade with each other in person or by mail — not to sell. An ATC swap is still its own tradition at art fairs and conventions.
Not really, for buying and selling purposes. Marketplaces, hashtags, and collector communities use both terms for the same physical format, and most people search for both without distinguishing. The practical difference only shows up in intent: if someone says "let's trade ATCs," they usually mean a direct swap between artists rather than a cash sale. If they say "I'm selling ACEOs," they mean exactly what it sounds like.
Want the full picture on the format itself — size, materials, history? Read "What Is an ACEO?" or check the exact size and materials guide.