What are debit cards?

Many confuse debit cards and credit cards, but we are here to explain the main differences. The users of debit cards don’t rely on the bank and its loans1 – you can instead use them as prepaid cards. That implies that you can spend as much money as you have put into your checking account.

These cards are primarily used for everyday purchases, as well as online purchases. These cards, in the last few years, have taken over the role of money bills – more and more people use debit daily. However, these cards will not build your credit score. Most of them that are on the market currently don’t have any additional fees or interests2 you have to pay. You can do many things with a debit card – here are some of the features of this type of cards you can find in the USA.

Features of debit cards in the USA

Debit cards are used worldwide, but all of them differ. Each country has its own policy about these cards, and the USA is one of them. Here are some things you can find about these cards in the USA.


You can instantly forget about paying monthly or annual fees for maintaining your card. Most stored value cards on the USA market are free – you won’t even have to pay a fee for transactions or withdrawals. Moreover, you won’t have to pay a fee while using your checking card for online purchases.


In the past, people have used checks to pay for their purchases. Now, these checks have mostly been replaced by debit cards. These cards are a lot safer than checks because, even if your card is to get stolen, you can easily report it, and your card will be blocked. When it comes to checks, they can still be used, even if they are stolen. Moreover, most debit cards in the USA will be protected with a PIN (Personal Identification Number), the four-digit number that you must type into an ATM anytime you withdraw money or make a purchase. No one can use your card unless they know your PIN code.


Most cards on the USA market have daily, weekly, and monthly limits. Once you get your card, you will be given a limit to the amount of money you can spend or withdraw over a certain period. It can help you keep your finances organized; you won’t be able to overspend if you have a limit on your card.

Online Debit Cards

No-Credit Cards used in the USA have an option of online usage. You can use apps to track your spending and your account’s balance at any moment. Moreover, you can use these apps to make purchases by installing a unique QR code in the app and scanning it in the store. That will automatically make a transaction from your account to the seller’s account.


Cashback is a feature that needs to be mentioned regarding these cards in the USA. Many banks offer the perk of earning cashback with every purchase you make with your card. However, this feature is not available in all banks but is often associated with debit cards in the USA.

Frequently Asked Questions

Additional Reads

  1. Differences between Prepaid and Debit cards

Reference Index

  1. How do loans work? Nerdwallet
  2. Interest Rate Definition. U.S.News