Key Features of a Debit Card

✅ Directly Linked to a Bank Account – Debit cards are connected to the holder’s bank account, and transactions are processed based on the available balance. If there are insufficient funds, the transaction cannot be completed (unless the bank offers an overdraft or linked credit feature).

✅ Instant Withdrawals and Spending – All debit card transactions are processed immediately. Whether making a purchase or withdrawing cash from an ATM, the amount is instantly deducted from the user’s account. Unlike credit cards, there is no borrowing involved, as all spending is based on available funds.

✅ ATM and Online Transactions – Debit cards can be used for cash withdrawals, deposits, and balance inquiries at bank ATMs. They are also accepted for online shopping, allowing users to purchase products or services over the internet.

✅ No Interest or Debt Accumulation – Unlike credit cards, debit card transactions do not incur interest or lead to debt accumulation, as users can only spend what is available in their account.

✅ Security Features – Debit cards typically require a PIN (Personal Identification Number) for transactions. Additional security measures may include contactless payment options, one-time passwords (OTP), or biometric authentication.

✅ Better Expense Control – Since users can only spend what is in their account, debit cards help with budget management and prevent overspending. This makes it easier to stay within a monthly spending limit compared to credit cards.

✅ International Use – Most debit cards are backed by global payment networks like Visa and Mastercard, allowing transactions both domestically and internationally.

✅ No Impact on Credit Score – Debit cards do not affect credit scores, as they do not involve borrowing. While they provide financial convenience, they do not contribute to building a credit history like credit cards do.