A debit card is a plastic card that gives the cardholder a set amount of funds against each purchase that they make. The funds are transferred from the cardholder's bank account to the merchant's account at the time of sale. Debit cards can be used to make purchases both in-store and online.
When you use a debit card to make a purchase, the funds for that purchase are transferred from your bank account to the merchant's account. This happens in real-time, meaning the funds are taken out of your account immediately. You will usually be asked to enter your PIN (personal identification number) when making a purchase with a debit card.
There are many benefits of using a debit card, including:
There are some risks associated with using a debit card, including:
There are some things you can do to use your debit card safely, including:
If your debit card is lost or stolen, you should contact your bank or credit card company immediately. They will cancel your card and issue you with a new one. You may be liable for any fraudulent charges that are made on your account before you report the loss or theft of your card, but many banks will not hold you responsible if you're prompt in reporting unauthorized charges.
You can get a debit card from your bank or credit card company. You will need to have a bank account to get a debit card.
There are usually no fees associated with using a debit card, but you may be charged a fee if you withdraw cash from an ATM that is not affiliated with your bank. Some banks may also charge a monthly fee for having a debit card.
There are some alternatives to debit cards, including credit cards and prepaid cards. Credit cards allow you to borrow money against your credit limit, which you will need to repay with interest. Prepaid cards can be loaded with funds in advance and are then used in the same way as a debit card.