A debit card is a plastic payment card that electronically deducts money from your bank account when you make purchases. It allows you to make purchases in stores, online, and over the phone. There are two main types of debit cards: traditional debit cards and prepaid debit cards.

Traditional debit cards:

• Issued by your bank and linked to your bank account.
• Usually have a lower fee structure than prepaid debit cards.
• Provide access to your entire bank account balance.
• May have daily purchase limits.
• May require a PIN to activate.

Prepaid debit cards:

• Issued by a third party, not your bank.
• May have a higher fee structure than traditional debit cards.
• May offer a lower credit score impact than traditional debit cards.
• Typically have a set limit on available funds.
• Do not require a PIN to activate.

Common uses for debit cards:

• Purchasing goods and services in stores.
• Paying bills online.
• Ordering food online.
• Getting cash from ATMs.

Advantages:

• Convenience – Debit cards are easy to use and convenient to carry.
• Safety – Debit cards are a safer way to make purchases than writing checks.
• Fraud protection – Most banks offer fraud protection on debit cards.
• Lower fees – Traditional debit cards usually have lower fees than prepaid debit cards.

Disadvantages:

• Overdraft fees – If you exceed your available funds, you may incur an overdraft fee.
• Daily purchase limits – Some debit cards have daily purchase limits, which can limit your ability to make large purchases.
• Credit score impact – Prepaid debit cards can have a negative impact on your credit score.

Overall, debit cards are a convenient and safe way to make purchases. They are a good option for people who want a quick and easy way to pay for things. However, it is important to be aware of the potential drawbacks of debit cards, such as overdraft fees and daily purchase limits.