Debit

Definition

• The withdrawal of funds from your account. In accounting, a debit is an item of debt as recorded in an account.

Synonyms
incur debt, charge, take-away

Related Terms and Acronyms

• Automated Teller Machine (ATM) — Acronym, Canada,
  • A terminal activated by a magnetically encoded card that allows customers of a bank or other financial institution to conduct everyday banking tasks such as deposits, withdrawals and transfers between accounts. An interconnection of these terminals allows customers to conduct certain transactions around the nation and the world; usually subject to a surcharge fee.
  ➥ See also Automated Banking Machine (ABM).
• Cheque (CK) — Acronym,
  • A written order for payment of a certain amount of money.
  ➥ Bank account transaction code.
• Cheque Clearing — Definition,
  • When you write a cheque to a person or a company, the cheque is typically cashed when deposited into a bank account. Your chequing account is then debited for the amount of the cheque and the cheque is said to have "cleared."
• Chequing Account — Definition,
  • A bank account that allows quick access to the money in the account.
• Credit Card (CC) — Acronym, Very Important,
  • A plastic card with a coded magnetic stripe that, when signed, entitles its bearer to a revolving line of credit, with a credit limit and interest rate determined by the borrower's income and credit report.
  ➥ A payment card that gives customers access to a revolving line of credit.
• Debit Bureau — Definition,
  • A service used by banks that eventually tracks account opening and closing information, cheque order history, cheque writing history, any history of collection activity on unpaid accounts, frequency of debit and ATM card use and household demographics. Under the system, when a consumer gives a cheque to a participating retailer, the individual's account is identified by punching a code into a computer or swiping a card containing a magnetic strip or microchip through an electronic reader, which tells the retailer whether to accept or reject the transaction.
• Debit Card (DC) — Acronym, Important,
  • A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature. A PIN-based or direct debit card removes a purchase price from a customer's chequing account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase price from a customer's bank account in two or three days.
• Direct Debit (DD) — Acronym, Important,
  • A means of authorizing recurring payments (e.g., mortgage payments, insurance premiums) to be drawn on an account.
• Insufficient Funds (ISF) — Acronym,
  • When funds are not enough to satisfy the payment of a cheque or draft made on that account; also known as non-sufficient funds (NSF).
• Joint Account (J/A) — Acronym, Important,
  • A bank account owned by two or more persons who share equally in the rights and liabilities of the account.
• Letter of Credit (L/C) — Acronym,
  • A letter authorizing a person or company to draw on a bank or stating that the bank will honour the credit up to the stated amount.
• Passbook — Definition,
  • A book used to record all banking transactions for a designated account.
• Point of Sale (POS) — Acronym,
  • A location where a sales transaction takes place.
  • An electronic payment system for retail goods and services, through the use of credit cards or debit cards that directly access and deduct funds from a customer's chequing account. Also known as POS.
• Transaction — Definition,
  • Action in a bank account. It may be a deposit, withdrawal, debit card payment, service charge or interest payment.