Debit card

(redirected from Debit cards)
Also found in: Dictionary, Thesaurus, Encyclopedia.
Related to Debit cards: Prepaid Cards

Debit card

A card that resembles a credit card but which debits a transaction account (checking account) with the transfers occurring contemporaneously with the customer's purchases. A debit card may be machine readable, allowing for the activation of an automated teller machine or other automated payments equipment.

Debit Card

A card entitling the owner to make automatic withdrawals from a bank account to make purchases or to receive cash. That is, when one uses a debit card, the issuing bank transfers funds from the holder's account to the seller electronically. The holder of a debit card may therefore use it to buy a good or service. Debit cards operate much like credit cards but, while credit cards are essentially short term loans, debit cards are more like electronic checks. They are also called check cards, bank cards or, less commonly, asset cards.

debit card

A plastic card that may be used for purchasing goods and services or for obtaining cash advances for which payment is made from existing funds in a bank account. Because a debit card provides about the same float as a checking account (one to three days), it is a less desirable method of payment than a credit card. These cards are often part of the comprehensive all-in-one accounts offered by many brokers.

Debit card.

A debit card -- sometimes called a cash plus card -- allows you to make point-of-sale (POS) purchases by swiping the card through the same type of machine you use to make credit card purchases.

Sometimes you authorize a debit card transaction with your personal identification number (PIN). Other times, you sign a receipt just as you would if you were charging the purchase to your credit card. You can also use the card to make ATM withdrawals.

When you use a debit card, the amount of your purchase is debited, or subtracted, from your account at the time of the transaction and transferred electronically to the seller's account.

You have some of the same protections against loss with a debit card as you do with a credit card, but there is one important difference. While $50 is the most you can ever be responsible for if your credit card is lost or stolen, you could lose much more with a lost or stolen debit card if you don't report what has happened within two days of discovering it.

If you delay reporting a missing card, you could lose up to $500. And if you wait more than 60 days after receiving a bank statement that includes a fraudulent use of your card, you could lose everything in your account including your overdraft line of credit. You can find the specific rules on the Federal Trade Commission website at

In addition, if you purchase defective merchandise with a debit card, there are no refunds. Most credit card issuers do not, generally speaking, make you pay for defective products.

References in periodicals archive ?
A debit card will save you loads of time from lining up at the ATM to withdraw cash, as it is automatically linked to your bank account.
When you book a ticket over the phone via our contact centre we accept all credit cards and the debit cards according to the same principle as we do when booking on the GulfAir.
Debit cards may be more readily accepted by merchants than checks, even when you travel.
But the banking industry doesn't perceive prepaid debit cards as competition.
With regard to the possible need for additional disclosures that explain how non-PIN protected debit cards differ from other credit cards, the Board is studying this matter.
The 4th edition of this best-selling report provides new data on the debit card markets in developed regions, including America, Australia, the United Kingdom, Japan and Germany, as well as emerging markets including Thailand, Malaysia and Singapore.
com) says, 'If you can avoid using a debit card, you should.
to establish the Rush Card--a prepaid Visa debit card (www.
As a result, costs associated with debit card transactions have been raised as a way for banks to get their own slice of the pie, he said.
The subsequent linking of electronic point-of-sale (POS) terminals to these networks has allowed consumers to use their debit cards to pay for purchases at supermarkets, gas stations, and other sites by debiting their deposit accounts.
Changing consumer perceptions in the Australian debit card market
Debit cards look like credit cards and are used to pay for purchases and to withdraw cash.