ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Debit cards draw money directly from your checking account when you make the purchase. They do this by placing a hold on the amount of the purchase. Then the merchant sends in the transaction to their bank, and it is transferred to the merchant’s account.

Detailed explanation-2: -While regular debit cards perform a real-time transaction from your bank account every time you make a purchase or ATM withdrawal, prepaid debit cards require you to load the card in advance via cash, checks, online transfers or a visit to a retailer.

Detailed explanation-3: -Debit cards take money out of your checking account immediately. Debit cards let you get cash quickly. You can use your debit card at an automated teller machine, or ATM, to get money from your checking account. You also can get cash back when you use a debit card to buy something at a store.

Detailed explanation-4: -A debit card is linked to your checking account. It allows you to access money directly from your account for transactions, and also works as an ATM card to directly withdraw cash. You typically can’t spend any more than the amount you have in your account or your transaction will get declined.

Detailed explanation-5: -You can use a debit card to withdraw money from an ATM. You can also use it like a credit card for Point-of-Sale (POS) transactions. Unlike credit cards, the amount is immediately deducted from your bank account, so you can’t spend more than what you have in your account.