Debit Card

Debit card summary:

• A debit card is a payment card that provides easy access to the money in your bank account.

• Every debit card has a unique card number, an expiration date, a CVV number, and a PIN the cardholder sets up.

• Your bank deducts debit card transactions from your account, usually immediately.

Debt Card Definition and Meaning

A debit card is a payment card that’s connected to a bank account, most often a checking account. When you use your debit card, your bank deducts the amount of the transaction from your account. You can use a debit card to make purchases in stores, online, and over the phone, and to withdraw cash at ATMs.

Key Aspects of Debit Cards

When you open a checking account, you get a debit card from the bank. Some banks also issue debit cards with other types of accounts, such as savings accounts. You need to set up a PIN for your debit card, and depending on the bank, you may need to activate your debit card before you can use it.

Here are the most important pieces of information tied to your debit card:

• Card number: A sequence of 15 to 16 numbers unique to your debit card and found on the front or the back of the card. You provide the card number to make purchases online and over the phone.

• Card Verification Value (CVV) number: A three- or four-digit code found on the front or back of the card. You typically also need the CVV number to make purchases online and by phone.

• Expiration date: The date when your debit card is no longer valid. Banks usually mail you a new debit card before your current card expires.

• Personal identification number (PIN): The code you set up when you get your debit card. You need your PIN to use your debit card at ATMs, and sometimes in stores.

Debit cards look just like credit cards. They can have the Visa or Mastercard logo as well as an electronic chip with tap-to-pay functionality. If you want to, you can usually choose to use your debit card as if it’s a credit card instead of entering your PIN. 

How Debit Cards Work

Your debit card is a convenient way to access the money in your bank account. If you need cash, use your debit card at an ATM, provide your PIN, and withdraw the amount you want.

Keep in mind that you typically need to use one of your bank’s ATMs or a bank in its ATM network, to get cash without any fees. If you use an out-of-network ATM (one that isn’t in your bank’s network), there could be additional ATM fees from both your bank and the ATM owner.

You can also use your debit card as a payment method. For in-store purchases, use your debit card when you check out and enter your PIN into the payment reader. To use your debit card online or over the phone, provide the card number, expiration date, and the CVV number. The CVV number is a three or four-digit -code that’s normally found on the back of the card.

You’re spending the money in your bank account when you use your debit card. Transactions only go through if there’s enough money in the account to pay for them, unless you’ve agreed to allow overdrafts and a negative balance with your account. An overdraft is when your bank lets you spend more than you have in your account, and it normally comes with an overdraft fee.