debit card

(noun)

a product that can be used to make payments by drawing money directly from the user's bank account

Related Terms

Examples of debit card in the following topics:

  • Forms of Money

    • The most common form being debit cards.
    • A debit card improves the payments system's efficiency and extends the function of checks.
    • Many retail and grocery stores allow consumers to pay for goods and services using a debit card.
    • Although many businesses do not accept checks, they do accept debit cards.
    • Debit cards expanded electronic funds leading to the automated teller machine (ATM) and the internet.

  • Loyalty Marketing

    • CLOs connect offers or discounts directly to a consumer's credit card or debit card, which can then be redeemed at the point of sale.
    • To receive and use CLOs, consumers must willingly opt in to a CLO program and provide their credit/debit card information.
    • When consumers see relevant CLO-enabled advertisements and product offers while browsing online, using a mobile device, watching TV, reading a newspaper or magazine or listening to the radio they can click, text or scan a QR code to link the CLO-enabled ad directly to their credit/debit card.
    • Others, like MazeCard, have offered consolidated loyalty marketing schemes in other continents.
    • Moloney shows that nearly half of all credit card users in the US utilize a points-based rewards program.

  • Financial Innovation

    • Customers can make deposits, withdrawals, and credit-card transactions.
    • Moreover, banks offer debit cards.
    • For example, a customer uses a debit card to pay for goods and services by electronically transferring funds from his checking account to a store's bank account.
    • Thus, the debit card has replaced checks.
    • Some businesses do not accept checks, but take debit cards because the merchants know they will receive money from the customer's bank.

  • Credit Cards

    • A credit card is a payment card issued to users as a system of payment.
    • A credit card also differs from a cash card, which can be used like currency by the owner of the card .
    • Compared to debit cards and checks, a credit card allows small short-term loans to be quickly made to a customer who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card.
    • Merchants may charge users a "credit card supplement," either a fixed amount or a percentage, for payment by credit card.
    • A credit card is a payment card issued to users as a system of payment.

  • Answers to Chapter 1 Questions

    • Debit cards are electronic.
    • Credit cards are loans from a bank or finance company.
    • Of course, many people use credit cards as money, further complicating the money definition even more.

  • Short-Term Loans

    • A credit card is a payment card issued to users as a method of payment.
    • For smaller businesses, financing via credit card is an easy and viable option.
    • Compared to debit cards and checks, a credit card allows small short-term loans to be quickly made to a customer.
    • The customer then need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card.
    • These loans are also sometimes referred to as "cash advances," though that term can also refer to cash provided against a credit card or other prearranged line of credit.

  • Debits and Credits

    • Everything on the left side (debit side) increases with a debit and has a normal debit balance; everything on the right side (credit side) increases with a credit and has a normal credit balance.
    • Expenses reduce revenue, therefore they are just the opposite, increased with a debit, and have a normal debit balance.
    • What is debited and credited is also a matter of transaction type.
    • Real account: Debit what comes in and credit what goes out
    • Define how the terms debit and credit are used in accounting

  • Accounting Flows and Cash Flows

    • Identify the transaction through an original source document (such as an invoice, receipt, cancelled check, time card, deposit slip, purchase order) which provides the date, amount, description (account or business purpose), name and address of the other party.
    • Make journal entries – record the transaction in the journal as both a debit and a credit.
    • Trial Balance – a calculation to verify that the sum of the debits equals the sum of the credits.
    • Adjusted trial balance – make sure the debits still equal the credits after making the period end adjustments.

  • How Transactions Affect the Balance Sheet

    • Recording of a debit amount to one account and an equal credit amount to another account results in total debits being equal to total credits for all accounts in the general ledger.
    • Assets Accounts: debit increases in assets and credit decreases in assets.
    • Capital Accounts: credit increases in capital and debit decreases in capital.
    • Liabilities Accounts: credit increases in liabilities and debit decreases in liabilities.
    • A debit to asset accounts will result in a decrease in the balance sheet accounts.

  • Electronic Banking

    • All you need is a plastic card from your bank and your own password.