How Does a Debit Card Work: A Guide to Understand It

Author: Rakes

When you open a bank account. You will typically be issued a debit card linked to that account. The card has a unique 16-digit number that helps to identify your account.


To use your debit card easily, you will first need to make sure you have sufficient funds in your card account. It is important to cover the purchase you're about to make. 


You can check your balance by logging into your account online. Other ways are calling the card provider company, using an ATM, or checking with a bank teller.


When you are ready to make a purchase. You will swipe your debit card through a card reader at the store. Some stores may also require you to enter a PIN to confirm your identity.


The card reader will communicate with your bank's computer system to check your account balance. So, ensure that you have enough money to cover the purchase.


If you have enough money in your account. The bank will approve the transaction. Bank deducts the purchase amount from your account. Also, make sure of bank terms and conditions.


Some transactions may be processed as "pending" until the transaction is fully completed. For example, Use debit card to pay for gas at a pump. The transaction may be listed as "pending."


Your debit card can also be used to withdraw cash from ATMs. To do so, you'll need to find an ATM that's in your bank's network and follow the prompts to withdraw the desired amount.


When you use your debit card to withdraw cash, the bank will deduct the amount of cash you withdraw from your account balance.


Some banks may charge fees for using ATMs that are not in their network or for overdrawing your account. Make sure to read the terms and conditions of your account to understand fees.


To keep your account secure, make sure to keep your debit card in a safe place. Report any lost or stolen cards to your bank soon. You can also set up alerts to notify you of any unusual activity.