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debit card definition - finance
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 holderÂ’s bank account immediately. In contrast, a credit card balance doesnÂ’t have to be paid for many months after a purchase.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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