What does a debit card allow a cardholder to do?

A debit card allows a cardholder to withdraw and deposit cash from ATMs, which is a fundamental function of this type of payment card. When using a debit card at an ATM, the cardholder can access the funds directly from their checking or savings account. This allows for immediate access to cash, making it convenient for everyday transactions. Additionally, when making purchases, the funds are deducted directly from the linked bank account, providing a simple way to manage personal finances without accruing debt, as would happen with a credit card.

The capabilities of a debit card extend beyond just ATM transactions; it can also be used for point of sale transactions, where the cardholder can pay for goods and services with funds already in their account. This makes a debit card a versatile tool for managing everyday financial activities.