Which statement accurately describes debit cards compared to credit cards?

Which statement accurately describes debit cards compared to credit cards?

• A. Debit cards pull directly from a bank account, limiting spending to available funds.
• B. Debit cards offer a line of credit with interest.
• C. Debit cards accumulate interest on balances.
• D. Debit cards are never linked to a bank account.

Answer: (A)

Debit cards are tied directly to a bank account, so when you use one, the money comes from funds you already have. That means you can spend only what’s available, unless an overdraft arrangement is in place. Since you’re not borrowing money, there’s no interest charged on purchases made with a debit card. This contrasts with credit cards, which provide a line of credit you can borrow against and repay later, often with interest if you carry a balance. The idea that debit cards aren’t linked to a bank account isn’t correct, and the notion of a credit line with interest applies to credit cards, not debit cards.

Debit cards are tied directly to a bank account, so when you use one, the money comes from funds you already have. That means you can spend only what’s available, unless an overdraft arrangement is in place. Since you’re not borrowing money, there’s no interest charged on purchases made with a debit card. This contrasts with credit cards, which provide a line of credit you can borrow against and repay later, often with interest if you carry a balance. The idea that debit cards aren’t linked to a bank account isn’t correct, and the notion of a credit line with interest applies to credit cards, not debit cards.