debit card

Related Terms
Bank card used in cash transactions, but which is not a credit card. In a debit card transaction, the amount of a purchase is withdrawn from the available balance in the cardholder's account. If the available funds are insufficient, the transaction is not completed. Also called asset card (in the US), or payment card (in the UK).

Use 'debit card' in a Sentence

When using a debit card for purchases or cash withdrawals, it's critical that the account holder keep good records to avoid overdrawing the account.
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A debit card can be accepted at our brick and mortar store and as a matter of fact it is preferred as using a credit card costs us more money per month.
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In order to utilize the company debit card, you need to fill out form 3B and list the reasons for use, in addition to submitting receipts for Finance to verify purchases.
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Notable Quotable

Switch from Credit to Debit Cards to Achieve a Better Credit Score
"Credit card debt is no friend to your credit score. One of the best ways to avoid credit card debt is to pay the debt right away, through the use of a debit card. Debit is different from of credit. With a debit card, you deposit money into an account and then use the card to charge against the money. There is no credit bill to rack up, and you can only spend what you actually have. It is important to note that credit reports don't typically factor debit card payments into the credit score equation. But by disciplining yourself and using a debit card to settle debts on the spot, (rather than racking up huge credit card balances) you will, by extension, have a better credit score."
- Glenn Curtis


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