A debit card allows users to make payments directly from their bank accounts using credit card networks instead of paper checks. Debit cards function similarly to credit cards. Funds are debited directly from a bank account.
Do you go into debt if you use a debit card?
Unlike with a credit card, you do not go into debt when you use a debit card because you are using it to access funds you already have. You do not have to make monthly minimum payments on a debit card because there is no debt to repay.
How does a debit card work?
Debit cards partner with major credit card brands, such as VISA, Mastercard and Discover, to allow you to use your debit card for payment anywhere those branded cards are accepted. When using your debit card for an in-person purchase, you’ll swipe, insert or use contactless pay at the card terminal just like a credit card.
