Finance glossary
Debit Card
Also known as: Bank card, Visa Debit, Mastercard Debit
In simple terms
A debit card lets you spend the money that is already in your bank account. When you pay, the amount comes straight out of your balance — you are not borrowing.
On this page
What does debit card mean?
A debit card is linked directly to your current account. When you pay with it — in a shop, online or by contactless — the money is taken from the balance you already hold, not lent to you. Most current accounts come with one.
It is different from a credit card, which lets you borrow up to a limit and pay the money back later. With a debit card you can generally only spend what you have, though an arranged overdraft may let you go a little beyond your balance.
How a debit card works
When you pay, your bank checks you have the funds and either takes the money straight away or places a temporary hold that settles over the next day or two. Payments can be made by chip and PIN, contactless, or by entering the card details online.
Debit cards run on schemes such as Visa and Mastercard, which is why they are accepted in most places a credit card is. Spending on a debit card does not build a borrowing history, because you are using your own money.
How could this affect me?
A debit card is a simple way to spend without running up debt, and it helps you stay within your means because you are limited to your own balance. There is usually no interest to pay, unlike carrying a credit card balance.
The trade-off is weaker purchase protection. Debit card payments are not covered by Section 75, though your bank may still be able to pursue a chargeback under the card scheme rules if something goes wrong.
Things to watch out for
- Debit cards do not give you Section 75 protection — only credit cards do.
- Spending beyond your balance can tip you into an unarranged overdraft with charges.
- A pending hold can make your available balance look lower than the money you have actually spent.
- Using a debit card abroad can attract foreign-transaction and cash-withdrawal fees.
Know your rights
- If money leaves your account through an unauthorised or fraudulent transaction, your bank must normally refund it under the Payment Services Regulations 2017.
- Where a purchase goes wrong, your bank may be able to raise a chargeback under the Visa or Mastercard scheme rules — this is a scheme protection, not a legal right.
- If your bank treats you unfairly, you can complain and escalate to the Financial Ombudsman Service.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- legislation.gov.uk, The Payment Services Regulations 2017 (opens in a new tab). Accessed 22 Aug 2026.
- MoneyHelper, Debit cards — how they work (opens in a new tab). Accessed 22 Aug 2026.