A debit card differs from a credit card in that it does not provide credit; instead, it deducts the purchase from your chequing account immediately.

Question

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A debit card is linked to your chequing (or savings) account and when you make a purchase, the money is immediately deducted from your available balance. In contrast, a credit card provides a line of credit and you are essentially borrowing money from the credit card company. You have a grace period to pay back the money without interest, but if you carry a balance, you will be charged interest on the remaining amount.

A Debit Card Differs from a Credit Card in That