Debit Cards

What Is A Debit Card?

Debit cards are less common than credit cards, but?an increasing number of banks and savings institutions offer them now. You can use debit cards like credit cards in making purchases. However, unlike credit cards, which bill you later for the amount you have been charged, debit cards transfer your money immediately and directly out of your account with the bank.

With a debit card you can draw on a checking account, a savings account, and, with some, a personal line of credit extended by the bank as an overdraft privilege — you can even draw from a predetermined loan that is secured by your home or other property as collateral.

Debit cards are being used more and more in such places as department stores and supermarkets. Instead of having to cash a check with the manager’s approval, or using the store’s own charge card, a clerk inserts your debit card in a point-of-sale terminal and types in the information, and the amount is immediately deducted from your account at the bank.

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