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A
debit card looks like and is used like a major
credit card, but the funding source is
different. A debit card typically is linked to the
card holder’s bank account. As each purchase is
made, the purchase amount is automatically and
immediately deducted from that account balance.
Money for the purchase isn’t being loaned to the
card holder (as is the case with
credit cards), so purchases using a debit card
will only be authorized if sufficient funds are
available in the account. Since money isn’t
loaned,
finance charges don’t accrue on debit card
purchases. Debit cards are preferred by many over
paper checks. |
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