What distinguishes a debit card from a credit card?

The distinction between a debit card and a credit card primarily revolves around how payments are processed and the source of funds being accessed. With a debit card, payments are immediately deducted from the user's bank account when a purchase is made. This means that the funds are drawn directly from the account connected to the debit card, thus reflecting real-time spending and maintaining the account balance in accordance with purchases.

In contrast, credit cards allow consumers to borrow money up to a certain limit to make purchases, and repayment is generally required at a later date, often with potential interest charges on any balance carried beyond the grace period. While some debit cards may offer rewards or have certain benefits, the core functionality that sets a debit card apart from a credit card is the immediate fund withdrawal characteristic of debit transactions.

This understanding highlights the fundamental financial responsibility associated with debit cards, as they require users to stay within their available account balance, encouraging budgeting and careful spending.