Accounting Dictionary

Debit Card

A debit card allows consumers to pay for purchases by transferring money from their personal checking account into a merchant’s account.

When you buy something with a debit card, the money is deducted from your checking account that very day. If you don’t have enough money in your checking account, the transaction will be denied and you will not be able to purchase your item.

In contrast, if you buy something with a credit card you have until you get the bill to pay for your purchase.

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