Definition
A card linked to your checking account that takes money directly from your balance when you pay or withdraw cash.
What it means
A debit card pulls money straight from your checking account. Unlike a credit card, you are spending your own money, so there is no bill and no interest, but overspending can lead to overdraft fees. Federal Regulation E limits your losses for unauthorized debit card use if you report it quickly: up to $50 if you tell the bank within two business days after learning of the loss or theft, up to $500 if you report later, and possibly unlimited if you wait more than 60 days after your statement shows the charge. Many banks offer stronger voluntary protections. Debit card use does not appear on credit reports, so it does not build credit. Using your bank's own ATM network avoids most ATM fees.
Example
If a thief spends $800 with your stolen debit card and you report it within two business days, federal law caps your loss at $50. Reporting it after three weeks could raise your loss to $500.
Illustrative numbers only. Your situation will differ.