Definition: A debit card is a bankcard that allows depositors to pay third parties directly from their bank account balances electronically.
What Does Debit Card Mean?
What is the definition of debit card? Debit cards are normally issued by financial institutions and are extremely useful because they eliminate the need to carry cash. These cards are not the same as credit cards. When credit cards are used, the credit card company issues the payment for the purchase and grant a loan to the cardholder for the purchase that was made.
Debit cards, on the other hand, fund the purchase immediately out of the cardholder’s bank account. This means that the account to which the debit card is linked must have available funds at the time of the purchase. Also, debit cards require a password to be used; this particular requirement also differences a debit card vs a credit card. The latter doesn’t require a password to be used. In essence, a debit card is essentially like using cash to pay for things.
Let’s look at the following example.
Example
Mrs. Grant wanted to purchase some furniture online. She doesn’t want to use her credit card since she doesn’t like having debts, so she decides to call her banker to ask him what options does she has to complete the purchase.
As we previously stated, a debit-card is a payment method that allows the holder to make any purchase by using the funds available on their bank account.
Mr. Grant’s banker tells her the bank can issue a debit card for her in order to complete the purchase. The card can be used in any place that accepts GOLDIE cards whether online or offline. Her banker said the card will be delivered at her house in 2 business days and after that she will have to activate it trough the bank’s website to assign a secret password to it that will protect her from any unauthorized use.
Summary Definition
Define Debit Cards: Debit card means a physical plastic card that allows the holder to pay for any purchase he desires to make. Basically, the card is a payment instrument that can be used for regular transactions.
