Debit Card

Also known as a checkcard or bank card, a debit card is a payment card linked to a cardholder’s checking account. Visa and Mastercard partner with banks to issue debit cards, while Discover and American Express serve as both card networks and banks.

Debit cards typically contain a card number, the cardholder’s name, the issuing bank’s name, a card expiration date, and an EMV chip. Cardholders can use debit cards to withdraw funds at ATMs or make payments to merchants, either in-person or online. Unlike credit cards, debit cards do not help cardholders build credit because debit card transactions do not involve loans from the issuer. Instead, all purchases made using debit cards are made with the cardholder’s own funds.

Debit cards are advantageous because they do not charge interest, come with few to no fees, are easy to monitor, and provide instant access to funds. In addition to being accepted globally, debit cards allow cardholders to make purchases within their budgets and stay debt-free.