A payment card that deducts money directly from a consumer's checking account when used for purchases. It functions like an electronic check, allowing immediate access to available funds without incurring debt.
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Banking
Debit Card
Definition
A payment card that deducts money directly from a consumer's checking account when used for purchases. It functions like an electronic check, allowing immediate access to available funds without incurring debt.
Example
Mark used his debit card to buy groceries at the supermarket; the cost was immediately subtracted from the balance in his checking account.
Key Points
- 1Directly linked to a checking account.
- 2Funds are immediately deducted.
- 3Does not involve borrowing money.
- 4Can be used for purchases and ATM withdrawals.