What do debit cards do?

What do debit cards do?

• A. They allow you to borrow money from the bank.
• B. They only allow you to use the money available in your account.
• C. They enable you to transfer funds internationally
• D. They earn interest on balances

Answer: (B)

Debit cards let you spend money you already have in your bank account. When you use one, the purchase is paid by deducting from your balance, so you’re not borrowing money from the bank. You can also use a debit card to withdraw cash from an ATM, which also reduces your balance. It doesn’t earn you interest on balances, and while you could transfer funds online, that’s a separate service from using the card itself. So the key idea is you can use only the money that’s in your account.

Debit cards let you spend money you already have in your bank account. When you use one, the purchase is paid by deducting from your balance, so you’re not borrowing money from the bank. You can also use a debit card to withdraw cash from an ATM, which also reduces your balance. It doesn’t earn you interest on balances, and while you could transfer funds online, that’s a separate service from using the card itself. So the key idea is you can use only the money that’s in your account.