Debit cards directly withdraw funds from the user's checking account at the time of purchase, functioning similarly to writing a check, which is why they look like credit cards but work like checks. They do not offer a grace period or allow for later payment, which are features of credit cards, not debit cards.

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A Debit Card

Question 57

Multiple Choice

A debit card:

A) provides a hard "paper trail."
B) allows cardholders to pay for transactions at a later date.
C) offers a purchase "grace period."
D) looks like a credit card but works like a check.
E) has credit features.

Correct Answer: