debit card
A debit card is a payment card issued by a bank or other financial institution that allows the cardholder to purchase goods and services and to withdraw funds directly from a linked bank account through an automated teller machine (ATM). Like a credit card, it can be used in place of cash for transactions. Unlike a credit card, however, the amount of the purchase is immediately deducted from the cardholder’s account. Debit cards are often issued in partnership with major payment networks, such as Visa or Mastercard, which allow them to be accepted at any location that honors cards from the same network.
[Last reviewed in September of 2025 by the Wex Definitions Team]
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