A debit card is similar to a credit card: it is a plastic card embossed with a name and account number, with a magnetic stripe on the back. It differs from a credit card by taking money for a purchase or cash advance from a checking account instead of charging against a line of credit.
The debit card allows a merchant to immediately withdraw the funds for an authorized transaction from your checking account. You provide authorization by presenting the card and entering a PIN (personal identification number) in the terminal at the store.
Related Fool Articles
Recent Mentions on Fool.com
- Is a Post Office Bank the Answer To Payday Lending?
- Tired of ATM Fees? Your Brokerage - Not Your Bank - May Be the Best Place To Turn To
- Is This What Apple, Inc.'s Payments Service Will Be Called?
- After AIG Settlement, Bank of America Corp Has Only 2 Major Legal Cases Remaining
- The Only Reason I Don't Own Visa Inc or MasterCard Inc
- U.S. Bancorp Tops Analyst Expectations as It Reports Record Net Income