What small plastic card linked to a deposit account at the owner's bank allows the cardholder to make purchases with money taken directly out of the account?

What small plastic card linked to a deposit account at the owner's bank allows the cardholder to make purchases with money taken directly out of the account?

• A. Credit card
• B. Debit card
• C. Prepaid card
• D. Credit report

Answer: (B)

A debit card is a small plastic card linked to a bank deposit account, so purchases pull money directly from that account at the time of the transaction. This real-time withdrawal is what distinguishes it from other cards: a credit card borrows money from a lender and is paid back later, often with interest; a prepaid card is loaded with a set amount of money in advance and may not be tied to a bank account for live withdrawals; and a credit report is not a payment card at all. So the described card is a debit card.

A debit card is a small plastic card linked to a bank deposit account, so purchases pull money directly from that account at the time of the transaction. This real-time withdrawal is what distinguishes it from other cards: a credit card borrows money from a lender and is paid back later, often with interest; a prepaid card is loaded with a set amount of money in advance and may not be tied to a bank account for live withdrawals; and a credit report is not a payment card at all. So the described card is a debit card.