What is "debit card"

Debit card \Deb"it card`\, n. [See debit.] a small usually plastic card with a magnetic coded number, similar to a credit card, which is used to pay for purchases by the electronic deduction of a sum of money (a debit) directly from the card-holder's bank account. Such cards do not require the establishment of a credit line, and such transactions do not incur any interest payments.

n. A card much like a credit card, but which takes money directly from the bank account, rather than borrowing the money from the issuer of the card.

n. a card (usually plastic) that enables the holder to withdraw money or to have the cost of purchases charged directly to the holder's bank account

A debit card (also known as a bank card or check card) is a plastic payment card that can be used instead of cash when making purchases. It is similar to a credit card, but unlike a credit card, the money comes directly from the user's bank account when using a debit card.

Some cards may bear a stored value with which a payment is made, while most relay a message to the cardholder's bank to withdraw funds from a payer's designated bank account. In some cases, the primary account number is assigned exclusively for use on the Internet and there is no physical card.

In many countries, the use of debit cards has become so widespread that their volume has overtaken or entirely replaced cheques and, in some instances, cash transactions. The development of debit cards, unlike credit cards and charge cards, has generally been country specific resulting in a number of different systems around the world, which were often incompatible. Since the mid-2000s, a number of initiatives have allowed debit cards issued in one country to be used in other countries and allowed their use for internet and phone purchases.

Unlike credit and charge cards, payments using a debit card are immediately transferred from the cardholder's designated bank account, instead of them paying the money back at a later date.

Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash. Merchants may also offer cashback facilities to customers, where a customer can withdraw cash along with their purchase.