Debit Card is a card allowing the holder to transfer money electronically from their bank account when making a purchase. It is a payment card that deducts money directly from a consumer’s checking account to pay for a purchase. When you use it the money is taken out of your bank account immediately. Debit cards eliminate the need to carry cash or physical checks to make purchases. In addition, debit cards, also called check cards, offer the convenience of credit cards and many of the same consumer protections when issued by major payment processors like Visa or MasterCard.
- A debit card is tied directly to your checking account.
- It can be used where a credit card can be used.
- Generally, you will use your PIN to complete the transactions.
Debit cards draw money directly from your checking account when you make the purchase. Unlike credit cards, they do not allow the user to go into debt, except perhaps for small negative balances that might be incurred if the account holder has signed up for overdraft coverage. You will have a PIN to use with your debit card at stores or ATMs. However, you can also use your debit card without a PIN at most merchants. However, debit cards usually have daily purchase limits, meaning it may not be possible to make an especially large purchase with a debit card.