Debit card

A debit card is a payment card that is used to deduct the amount of a purchase directly from the bank account to which the card is linked. These cards eliminate the risk of bad debt for the card provider, since funds are paid immediately. In addition, the card fee paid by the merchant is significantly lower than the amount paid for credit card purchases, since there is no risk of loss built into the fee. A debit card differs from a credit card in that a debit card user does not take on a debt obligation; once the underlying funds in a linked bank account are used up, the debit card cannot be used to make additional purchases.