A steel wire lift type automatic card retaining and returning circulation device comprises a card reader and a card box. A plurality of card cases used for collecting and outputting cards are arranged in the card box, the card box is mounted in a self-service machine in the mode that the card box can move longitudinally to drive the corresponding card case to be aligned with an outlet of the card reader, the card box is connected with a steel wire rope which drives the card box to be lifted up and down, the other end of the steel wire rope is connected on a take-up reel, and the take-up reel is connected with a first motor which drives the take-up reel to rotate. A gear rack capable of pushing the card cases to move to the outlet of the card reader is arranged on the rear part of the card box, and the gear rack is connected to a second motor. The steel wire lift type automatic card retaining and returning circulation device has the advantages that the steel wire lift type automatic card retaining and returning circulation device is easy to manage, simple in structure, safe in use, and capable of returning retained cards to clients timely.