Learn more about the financial tool of debit cards
Debit cards are a convenient way for consumers to pay for purchases without using cash, checks or credit cards. Debit cards offers the convenience of a credit card without charging fees and interest on a consumer's purchase. These fees are avoided, because a debit card takes the money directly from a checking or savings account, working much like a check would. Debit cards can also double as ATM cards in many cases, making banking more convenient wherever the consumer needs to be.
Automated teller machine (ATM)
An ATM is a machine that allows people with debit cards to access their bank accounts to check balances, deposit money and withdraw cash.
IssuerAn issuer is the bank or financial institution that provides a debit card for the consumer.Overdraft
Overdraft is a term used to describe an account tha mobile database t has "spent more" than the funds available. Most debit card holders have the option of overdraft protection-for a monthly fee paid to the issuing financial institution.
Personal identification number (PIN)
The personal identification number, or PIN, is a four-digit code issued to all debit card holders. This PIN is a way for ATMs to validate the identification of the cardholder.
Personal identifier (PID)
A personal identifier is one of a number of identification numbers that can be used to validate a person's identity when trying to access financial or personal accounts. A debit card account number and the card's PIN are two types of personal identifiers.
Electronic Fund Transfer Act
This act, created and regulated by the FDIC, provides protection for consumers using debit cards so they can safely deposit or withdraw funds.