The working of debit cards is similar to that of credit cards in many ways. Debit cards allow the card holders to pay for their purchases directly from their account instead of paying in cash. Debit cards are also called as check cards or bank cards because the amount for which purchases are made is directly withdrawn in an electronic transfer from the account of the card holder.

The concept of using debit cards to pay is an alternative payment method to cheques, cash or credit card transactions.Whenever you purchase something and offer your debit card for payment, the receiver swipes your card through an electronic device. The device checks whether you have sufficient balance in the account and on confirming it, you are asked to enter the PIN.

The amount for which you are to be billed is entered and then the money is immediately transferred from your account to the account of the receiver. The major difference in this system of payment and credit card payments is the fact that there is no credit involved. Whatever is paid using your debit card is your money altogether which hasn’t been taken as credit. In a credit card, you have to pay back the purchase amount in a period specified by your issuer. Whereas, a debit card is just another channel for payment in which the amount is directly debited from your check in account.

The efficiency of debit cards and the convenience that it provides to the card holders are the reasons behind it being used extensively by people across many countries. Also, debit cards are accepted almost everywhere due to their global presence. Even for shopping online and ordering something over the internet, debit cards can be safely used.