Which of the following is true about debit cards? (1 point)
• They are issued by networks such as Visa.
• They usually charge a lower interest rate than credit cards.
• When vou use one. the money is taken directly from vour bank account.
• You can run up huge debts if vou don't pav the balance off quicklv.
• When you use one, the money is taken directly from your bank account.
To determine which of the given statements is true about debit cards, let's examine each option:
1. They are issued by networks such as Visa: This statement is true. Debit cards are often issued by payment networks like Visa, Mastercard, or American Express.
2. They usually charge a lower interest rate than credit cards: This statement is not true. Debit cards typically do not charge any interest because the money spent is directly deducted from your bank account. Credit cards, on the other hand, charge interest on any unpaid balances.
3. When you use one, the money is taken directly from your bank account: This statement is true. Unlike credit cards, which allow you to borrow money for purchases, debit cards directly deduct the funds from your linked bank account when you make a transaction.
4. You can run up huge debts if you don't pay the balance off quickly: This statement is not true. Since debit cards do not provide a credit line, you cannot accumulate debt when using them. The transactions are limited to the available funds in your bank account.
Therefore, the correct statement is: When you use one, the money is taken directly from your bank account.