What type of card automatically deducts the amount of a purchase from the cardholder's checking account?

• A. Credit Card
• B. Debit Card
• C. Prepaid Card
• D. Gift Card

Answer: (B)

A debit card is designed to automatically deduct the amount of a purchase directly from the cardholder's checking account at the time of the transaction. This means that when you make a purchase using a debit card, the funds are immediately withdrawn from your bank account, allowing for real-time payment and balancing of your finances.

This mechanism helps individuals manage their spending effectively, as they can only spend what is available in their account. In contrast, a credit card allows for borrowing funds up to a certain limit, where repayment occurs later, while prepaid cards and gift cards require funds to be loaded in advance, operating differently from a debit card's direct link to a checking account.