Which payment method withdraws funds directly from your bank account when used?

Which payment method withdraws funds directly from your bank account when used?

• A. Debit Card
• B. Credit Card
• C. E-commerce
• D. Cheque

Answer: (A)

Using a debit card pulls money directly from your bank account when you make a purchase. The card is connected to your checking or savings account, so funds are deducted and transferred to the merchant almost immediately at the time of the transaction. In contrast, a credit card charges the purchase to a credit line, with repayment later, not from your bank balance right away. A cheque also debits your account, but it goes through a processing and clearing period, so funds aren’t transferred instantly. E-commerce isn’t a payment method by itself; it’s the online channel for transactions and can use various payment methods.

Using a debit card pulls money directly from your bank account when you make a purchase. The card is connected to your checking or savings account, so funds are deducted and transferred to the merchant almost immediately at the time of the transaction.

In contrast, a credit card charges the purchase to a credit line, with repayment later, not from your bank balance right away. A cheque also debits your account, but it goes through a processing and clearing period, so funds aren’t transferred instantly. E-commerce isn’t a payment method by itself; it’s the online channel for transactions and can use various payment methods.