A debit card is a plastic card issued by a bank or financial institution that allows the cardholder to access funds from their checking account or a linked account, such as a savings account. When a cardholder uses a debit card to make a purchase or withdraw cash, the funds are immediately deducted from their account.
Debit cards can be used to make purchases at stores, restaurants, and other merchants that accept electronic payments. They can also be used to withdraw cash from ATMs. Many debit cards also have the ability to make online purchases and pay bills.
Unlike credit cards, which allow cardholders to borrow money and pay it back over time, debit cards only allow cardholders to spend the money that is currently available in their account. This makes debit cards a useful tool for managing personal finances and avoiding debt.
Debit cards may also offer additional benefits such as fraud protection, cashback rewards, and discounts or promotions at select merchants.
