What is a debit card?

A debit card is a payment card that allows the cardholder to make purchases and access funds directly from their bank account. When a purchase is made using a debit card, the funds are immediately deducted from the cardholder's checking or savings account, unlike a credit card where the cardholder accumulates a balance that must be paid off at a later date. Debit cards are typically issued by banks and can be used at ATMs, online, and at various merchants that accept electronic payments. They are often linked to a specific checking account and can also be used for cash withdrawals at ATMs. Debit cards offer a convenient and secure way to make purchases and access funds without having to carry cash. They also provide a record of transactions, making it easier for cardholders to track their spending and manage their finances. In addition to basic debit cards, there are also prepaid debit cards that are loaded with a specific amount of money and can be used until the balance runs out. These cards are often used by individuals who do not have a traditional bank account or who want to limit their spending. Overall, debit cards are an essential tool for managing personal finances and making everyday transactions. They provide a convenient and secure way to access funds and make purchases without the need for cash or checks.