debitcard

A debit card is a payment card that enables the cardholder to make purchases or withdraw cash by drawing funds directly from a linked bank account. It is issued by banks and is widely accepted at retailers, online merchants, and ATMs through payment networks such as Visa or Mastercard.

Debit card transactions are typically processed in real time and can be authorized by entering a Personal Identification Number (PIN), signing for a purchase, or using contactless verification. They can be used at point-of-sale terminals, online stores, or ATMs to access funds. In many regions, transactions are subject to daily limits to manage risk.

Most debit cards are linked to checking or savings accounts. Some jurisdictions also offer prepaid debit cards that are not tied to a traditional bank account. Both consumer and business accounts may issue debit cards, and some cards support multiple currencies or cross-border use with applicable fees and exchange rates.

Security features commonly include an EMV chip, a PIN, a card verification value (CVV), and contactless technology. Cardholders are typically liable for fraudulent charges if they fail to report promptly, though protections vary by country and issuer. Fraud prevention also relies on bank monitoring, secure networks, and verification rules for online and offline transactions.

Advantages of debit cards include immediate deduction of funds, avoidance of debt, widespread acceptance, and convenience for everyday spending. Limitations include dependence on available funds, potential ATM or foreign transaction fees, and exposure to fraud schemes such as skimming or phishing.

See also: ATM card, prepaid card, credit card, payment network, EMV.