A debit card is a card issued by a bank that allows the cardholder to purchase goods and services. A debit card also allows the cardholder to withdraw money from his/her bank account through an ATM, like an ATM card. A debit card functions similarly to a credit card in that it can be used for transactions instead of cash but differs from a credit card in that the amount is immediately deducted from the cardholder’s checking account.
Debit card issuers partner with major credit card companies, such as Visa and Mastercard, to allow cardholders to use their debit cards at all locations where credit cards of that brand are accepted.
[Last updated in June of 2021 by the Wex Definitions Team]