How Does Debit Card Work?

A debit card takes money from your checking account. It’s also known as a “check card” or “bank card.” You can use it to make purchases, withdraw cash from an ATM, and avoid carrying too much cash. Just be aware that there may be fees associated with using debit cards. So, How Does Debit Card Work?

How Does Debit Card Work?

A debit card is a card that is connected to your checking account. It resembles a credit card, but it functions in a different way. The amount of money you can use with a debit card depends on the funds available in your account, rather than a credit limit like credit cards have. Your debit card can be linked electronically to your account or it can be an offline card. Transactions with offline cards take more time to process.

Using a debit card does not lead to debt like a credit card does, as you are only spending money you already have. With a debit card, there are no monthly minimum payments required since you are not borrowing money.

You can withdraw cash from an ATM using a debit card, or you can use it to buy things just like a credit card. Some debit cards require a PIN, but others can be used for purchases without one.

Debit cards instantly deduct money from your linked account. Therefore, your spending is restricted to the funds in your checking account, and the available amount will change based on your account balance.

The Fees

Debit cards usually don’t come with yearly fees or cash advance charges, but there may be other fees to keep in mind.

  • ATM transaction fee
  • Insufficient funds fee
  • Overdraft fee
  • Replacement card fee
  • Foreign transaction fee

A prepaid debit card is similar to a gift card as it holds a fixed amount of money. It may have various fees such as monthly maintenance fees, transaction fees, ATM fees, reloading fees, balance inquiry fees, inactivity fees, paper statement fees, and foreign transaction fees.


A debit card is given by a bank or credit union to checking account holders. It lets you take out money from an ATM or pay for things. With debit cards, you can’t spend more money than you have in your account.