Which term describes a card linked directly to a checking account that can be used to withdraw money or make purchases?

Which term describes a card linked directly to a checking account that can be used to withdraw money or make purchases?

• A. Credit Card
• B. Debit Card
• C. Prepaid Card
• D. ATM Card

Answer: (B)

Debit card. A card linked directly to a checking account that can be used to withdraw money or make purchases. Because the funds come straight from the account, transactions debit your checking balance at the time of the purchase or withdrawal, with no separate loan to repay. This differs from a credit card, which lets you borrow up to a limit and pay later; from a prepaid card, which uses a fixed preloaded balance; and from an ATM card, which is mainly focused on cash withdrawals and may not be used for purchases in all cases.

Debit card. A card linked directly to a checking account that can be used to withdraw money or make purchases. Because the funds come straight from the account, transactions debit your checking balance at the time of the purchase or withdrawal, with no separate loan to repay. This differs from a credit card, which lets you borrow up to a limit and pay later; from a prepaid card, which uses a fixed preloaded balance; and from an ATM card, which is mainly focused on cash withdrawals and may not be used for purchases in all cases.