Debit Card Meaning

Modern-day banking has reached new heights and debit cards have a huge role to play in this progress. But what is the meaning of debit card? 

In this article, we offer a simple explanation to help you understand debit card meaning. 

What is a Debit Card?

A debit card is a plastic payment card you link to your savings, current, or checking account to access funds through an ATM or in person. 

When you use your debit card to make purchases, the funds are directly transferred from your linked bank accounts into the payee/merchant’s bank account. To protect financial information, the debit card is securely embedded with a chip on the front. 

Uses of Debit Cards

What are the Advantages and Disadvantages of Debit Cards?

Despite their popularity, debit cards come with both pros and cons. Let us take a look at these.

Pros of Debit Cards

Here are some of the advantages of owning and using a debit card:

Cons of Debit Card

Here are some drawbacks that account holders should be aware of:

Debit Cards, ATM Cards, and Credit Cards: What's the Difference?

A Debit Card is used to make online payments and withdraw cash from ATMs. Banks typically provide a variety of Debit Cards, such as MasterCard, Visa, and RuPay. 

ATM card use is limited to ATM transactions. To complete a transaction, both a debit card and an ATM require a PIN.

Credit Cards, on the other hand, enable ATM withdrawals, but they are essentially a type of loan. Furthermore, it allows you to purchase any product on credit and pay the balance later and can also help increase your credit score.


Debit cards have become the preferred mode of payment for the contemporary shopper and this is largely due to the convenience they provide.

So what do you mean by debit card? Simply put, debit cards are bank accounts that you can conveniently carry in your wallet!

They are issued by banks or credit unions. These cards are linked to your bank account, whether savings, current, or otherwise. You can use these cards to make financial transactions anywhere in the world, where debit cards are accepted.

Debit Card - FAQs

When you open an account with the bank, you will usually be given a debit card. If not, you can apply for a debit card. After receiving the card, you must activate it and set a PIN. When you use the debit card for a transaction or withdrawal, you will be prompted to enter your PIN.

Yes, any financial institution that allows you to open an account online can provide you with a debit card. This is true for both online banks and physical banks that sign people up digitally.

You should notify your bank immediately if you lose a card; or else, your card could be utilized for unauthorized purchases, causing you to lose money or become a victim of fraud.

In most cases, no. However, debit cards have overdraft fees and monthly maintenance fees associated with your bank account.

Despite obtaining your card number and CVV, someone cannot complete an online transaction without the OTP, which is sent to the registered mobile number you provide and is only accessible to you.


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