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Debit Card |
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A debit card looks like and is used like a major credit card, but the funding source is different. A debit card typically is linked to the card holder’s bank account. As each purchase is made, the purchase amount is automatically and immediately deducted from that account balance. Money for the purchase isn’t being loaned to the card holder (as is the case with credit cards), so purchases using a debit card will only be authorized if sufficient funds are available in the account. Since money isn’t loaned, finance charges don’t accrue on debit card purchases. Debit cards are preferred by many over paper checks.
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Credit Card Definitions > A - E > Debit Card
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