A debit card is a payment card that allows you to make purchases by deducting money directly from your checking account. It looks like a credit card, but it works differently. The amount of money you can spend on a debit card is determined by the amount of funds in your account, not by a credit limit such as credit cards carry. Unlike with a credit card, you do not go into debt when you use a debit card because you are using it to access funds you already have. You do not have to make monthly minimum payments on a debit card because there is no debt to repay.
Debit cards can be used to buy goods or services in most stores, online, and at ATMs. They are issued by banks or credit unions to checking account holders. Debit cards usually consist of the banks name, a card number, the cardholders name, and an expiration date. Some debit cards carry a stored value with which a payment is made (prepaid cards), but most relay a message to the cardholders bank to withdraw funds from the cardholders designated bank account.
Debit cards are more convenient to carry than a checkbook or a large amount of cash. They are also easier and faster to use than writing a check. Debit cards do not charge interest, as credit cards do, and they are a good way to pay for purchases without having to pay interest.
