Released: January 18, 2006

Help Desk FAQ

What is a debit card?

Debit cards look similar to credit cards but act like checks because money to pay for purchases comes out of your checking account. Most banks have upgraded ATM (automatic teller machine) cards with dual-purpose debit cards that carry a MasterCard or Visa logo and are more useful than ATM cards. Debit cards work over the same worldwide networks used to process credit card payments.

You can use your debit card two ways: 1) With a personal identification number (PIN) to withdraw cash from an ATM or to request “cash back” at stores when making a purchase and 2) you can use your card with your signature or PIN to pay for goods, meals, gas and services.

You can’t use debit cards to charge a purchase and pay it back over time, as you can with a credit card. For your debit card to work, you must have enough money in your checking account to cover transactions unless you have overdraft protection.

Don’t confuse your debit card with an ATM-only card. An ATM card is limited in its functions: you can only use it with your PIN to either withdraw cash at certain ATMs or to make purchases at some stores with PIN pads.

Debit cards can be used to get local currency from almost any ATM worldwide and to make purchases wherever MasterCard or Visa are accepted. You can use your debit card in restaurants and stores simply by signing your name. And debit cards, like credit cards, can be used without your PIN or signature at pay at many merchant locations, over the phone or the Internet.