Debit cards are a type of payment card that are linked to a checking or savings account. When a purchase is made with a debit card, the funds are withdrawn directly from the account.
Unlike credit cards, which allow users to borrow money and pay it back later, debit cards only allow users to spend money that is already in the account. This can be a helpful budgeting tool since it limits spending to what has been saved or budgeted for.
Another advantage of debit cards is their widespread acceptance. They can be used to make purchases at merchants that accept credit cards and often can be used to withdraw cash from ATMs.
It is important to note that debit cards come with some risks. If the card is lost or stolen, funds can be quickly accessed and spent by someone else. To mitigate this risk, it is important to report a lost or stolen card as soon as possible. Additionally, some merchants may put a hold on funds when a purchase is made, which can be a hindrance to immediate access to the funds.
