What is a debit card?

• A. It borrows money from the bank with interest.
• B. It lets you spend money from your own bank account electronically or at a store.
• C. It earns reward points like a credit card.
• D. It creates a loan you repay later.

Answer: (B)

A debit card lets you spend money from your own bank account. When you pay with it, the funds move from your account to the store’s account right away, either electronically or at the register. Because you’re using money you already have, you’re not borrowing or paying interest, which is a key difference from credit cards. Some debit cards offer rewards, but the main idea is that the payment draws from your balance. The other descriptions refer to borrowing money or creating a loan, which is what a credit card does when you borrow and pay back later. If your account balance isn’t enough, the bank may decline the payment or apply an overdraft.