Debit Card
BeginnerA debit card is a payment card linked directly to a bank account, so that purchases and cash withdrawals are taken from the account’s available balance, rather than being borrowed as with a credit card.
Debit cards let people pay in shops, online and by contactless tap, and withdraw cash from cash machines, using their own money. Payments usually leave the account almost immediately or within a day or two.
Because spending is limited to the money in the account, debit cards help people avoid building up debt. If an account has an arranged overdraft, however, a debit card payment can take the balance below zero, which may incur fees or interest.
For example, a customer with 500 in their current account who buys groceries for 80 by debit card will see their balance fall to 420.
Debit cards differ from credit cards in several ways. Credit cards offer an interest-free period and may help build a credit history, while debit cards usually do not affect credit scores. Legal protections for credit card purchases can be stronger in some countries, although card networks offer chargeback schemes for both types. Debit card details should be protected carefully, since fraud takes money directly from the account.
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