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.
See debit card in Wall Street Words
A plastic card that may be used for purchasing goods and services or for obtaining cash advances for which payment is made from existing funds in a bank account. Because a debit card provides about the same float as a checking account (one to three days), it is a less desirable method of payment than a credit card. These cards are often part of the comprehensive all-in-one accounts offered by many brokers.
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