A debit card lets purchases draw directly from the cardholder’s bank account.
When a debit-card transaction is authorized, the payment is generally linked to funds in a checking or other deposit account. The bank may place a temporary hold, then complete the transaction through the payment network. The customer is using deposited money rather than borrowing under a conventional credit line.
Debit cards can be used at shops, online merchants, ATMs, and sometimes for cash-back transactions. They may require a personal identification number, a signature, or contactless authentication, depending on the transaction and local practice.
Debit cards are often confused with credit cards because both can carry a major network brand and look similar. The key difference is repayment: credit-card purchases create a balance owed to the issuer, while debit purchases normally reduce available account funds immediately or soon afterward. Some banks also offer overdraft protection, which can change the account’s short-term behavior.