What are Bank Debits?

Bank debits are transactions that reduce the balance in a customer's account at a bank. Larger debits are usually associated with checks written by a bank customer to a payee, or withdrawals directly made by a customer from their own account. Smaller debits can be associated with the imposition of bank fees, such as for check printing, check processing, deposit processing, foreign transactions, minimum balances, monthly maintenance, not sufficient funds checks, and for the delivery of a paper statement.

Types of Bank Debits

The most common types of bank debits are noted below:

ACH debits. These are pre-authorized electronic withdrawals used to pay recurring bills like utilities, loans, or subscriptions. Funds are automatically transferred from the customer’s account to the payee on scheduled dates.
Check payments. When a written check is deposited or cashed, the amount is debited from the issuer’s account. This is a manual form of payment that reflects a withdrawal once processed by the bank.
Debit card transactions. Purchases made using a debit card immediately deduct funds from the linked bank account. These transactions are typically processed electronically at the point of sale.
Bank fees. Banks often debit accounts for service fees, overdraft charges, or maintenance costs. These deductions are usually listed in the monthly statement and occur automatically.
Wire transfers sent. When a customer sends money via wire transfer, the bank debits the specified amount from their account. This is typically used for large or international payments and may include additional processing fees.
Loan or credit card payments. Repayments on loans or credit card balances can be automatically debited from a checking or savings account. These payments help avoid missed due dates and late fees.
ATM withdrawals. Cash withdrawals made at an ATM instantly reduce the account balance. Additional fees may apply if using an out-of-network machine.

Bank Debit Best Practices

It makes sense to periodically review the amounts being charged through bank debits, and consider shifting to a different bank if the fees become higher than what other banks are charging. Also, review these fees for evidence of fraudulent transactions. If you are not sure about the nature of a debit, contact your bank for an explanation.