A woman using a debit card at an ATM.
debit card - Investment & Finance Definition
A plastic card that has a magnetic strip on one side that can be swiped. A debit card is used to pay for goods and services. The bank or financial institution issuing the debit card pays the merchant and then deducts the amount of the transaction from the debit card holder’s bank account immediately. In contrast, a credit card balance doesn’t have to be paid for many months after a purchase.