Final answer:
A debit card indeed instantly deducts the cost of a purchase from a bank account. It transfers money directly from the user's bank account to the seller, contrasting with a credit card, which is a form of short-term loan.
Step-by-step explanation:
True, a debit card instantly deducts the cost of a purchase from your bank account. Debit cards allow you to transfer money electronically, which is very different from a credit card. While a credit card represents a short-term loan from the credit card company to you, a debit card is directly linked to your checking or savings account. Funds are taken out of your account immediately when you make a purchase, just like when you write a check.
When you use a debit card at a merchant, you are instructing your bank to transfer the exact amount of the purchase from your account to the seller's account. This happens instantaneously and enables the seamless buying of goods and services using money you already have. Debit cards often carry the Visa, Mastercard, or Discover logo, allowing them to be used widely at locations that accept these forms of plastic money.