What is a debit card

A debit card is a payment card that allows the cardholder to make purchases by electronically withdrawing money from their checking account. When a transaction is made using a debit card, the funds are immediately deducted from the cardholder's account, unlike a credit card where the cardholder is essentially borrowing money from the card issuer and is required to pay back the amount at a later date. Debit cards are often issued by banks and financial institutions and are typically used for everyday purchases such as groceries, gas, and other necessities. They are also commonly used to withdraw cash from ATMs. Debit cards are convenient and widely accepted, and they offer a secure way to access funds without carrying large amounts of cash. In addition to making purchases and withdrawing cash, debit cards can also be used for online transactions and bill payments. Many debit cards also come with additional features such as rewards programs, fraud protection, and the ability to link to mobile payment services such as Apple Pay or Google Pay. It's important to note that the funds available for use with a debit card are limited to the amount of money in the cardholder's checking account. This means that the cardholder cannot spend more money than they have available, which can help to prevent overspending and accumulating debt. Overall, a debit card is a useful tool for managing personal finances and making everyday transactions, offering convenience, security, and easy access to funds.