A debit card allows you to withdraw cash at ATMs and pay for purchases using the money in your checking account.
Let’s look at how debit cards work, how they compare to credit cards and prepaid cards and how to get one.
How does a debit card work?
You typically receive a debit card when you open a checking account at a financial institution. A debit card allows you to use the money in your account without having to go to the bank or write a check. You can use your debit card to make purchases (both online and in person) and withdraw money at an ATM.
Debit cards have magnetic strips, just like credit cards. They also come with Chip-and-PIN technology, which is designed to make the transactions more secure and reduce the risk of fraud. If you use your debit card at a vendor or ATM, you may have to enter your PIN to authenticate the transaction.
Debit cards vs. credit cards
The primary difference between credit and debit cards is that, while credit cards provide access to a revolving line of credit, debit cards are directly linked to your checking account.
When you buy something using credit, you’re borrowing money from the credit card issuer to pay for that purchase. The issuer will send you a bill each month for all the purchases you’ve made with your card.
On the other hand, when you purchase something with a debit card, your checking account is debited for that amount almost immediately. You don’t receive a bill or pay a monthly balance.
Debit cards vs. prepaid cards
While debit cards are linked to your bank account, prepaid cards (sometimes called prepaid debit cards) are cards you load money onto or purchase. Like debit cards, you can use prepaid cards to make purchases.
While your bank may cover a transaction when you have insufficient funds in your checking account (depending on your bank, whether you’ve opted for overdraft protection and the type of payment), you typically cannot spend more than the amount you’ve loaded onto a prepaid card. Unlike debit cards, prepaid cards may charge a fee for transactions like withdrawing cash at an ATM.
How do you get a debit card?
There are a few ways to get a debit card, including:
- Open a checking account: Typically, when you open a checking account, your bank will automatically give you a debit card.
- Call your bank's customer service: If you didn’t receive a debit card when you opened your checking account, reach out to your bank’s customer service team and request one.
Debit cards: an accessible way to use funds
Debit cards can be a great payment method for anyone who wants easy access to cash from their checking account. Explore Citi's checking account options to learn more about how to get your own debit card.
Debit Card FAQs
What should you do if your debit card is lost or stolen?
Immediately contact your bank’s customer service and report your card as lost or stolen. Depending on your financial institution, this may also be done through mobile or online banking applications.
Can you have a debit card without a checking account?
Most financial institutions offer a debit card only when you open and maintain an account with them. For example, Citi cannot issue a debit card to a customer without a checking account.
Can you have multiple debit cards for one checking account?
It depends on the financial institution; some banks may allow multiple debit cards for one checking account.
Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.
