Debit

Debit is a term used in accounting and banking with multiple related meanings. In accounting, a debit is an entry on the left side of a double-entry bookkeeping system that increases assets or expenses and decreases liabilities, equity, or revenue. In a journal, each transaction includes at least one debit and one credit, and the total debits equal the total credits. The normal balance of asset and expense accounts is a debit balance, while liability and equity accounts typically carry credit balances.

In banking and payments, a debit denotes a deduction of funds from a bank account. A debit card is a payment card that enables funds to be withdrawn or transferred directly from the cardholder's linked account when a purchase or cash withdrawal is made. Unlike a credit card, where the issuer pays and the user repays later, a debit card generally uses funds immediately or via overdraft if available.

Debit transactions include debit card purchases and direct debits or automated clearing house (ACH) debits, which pull funds from an account at the request of a merchant or service provider. Debit cards usually require a PIN and may be subject to fraud protection rules, merchant disputes, and processing times.

In accounting and finance, the debit concept supports the structure of the accounting equation and the recording of real-time fund movements in consumer payments.