How to use your debit card

A debit card may look a lot like a credit card, but it works differently. For one, the money comes right out of your bank account — no borrowing, no bills later.

For many Canadians, it’s become the go-to way to pay for everyday things. In fact, debit cards were the second most used payment method in 2024, accounting for roughly 30% of all transactions — just behind credit cards (33%).¹ What that means in terms of dollars and cents is that those transactions add up to 6.7 billion debit card purchases worth more than $300 billion. It’s easy to see why: debit is quick, widely accepted, more convenient than cash and lets you spend your own money without worrying about interest charges.

Whether you’ve just opened your first bank account, switched to a new financial institution or simply never used a debit card before, knowing how it works can make shopping, bill payments or cash withdrawals simple and stress-free. Here’s a step-by-step guide to using your debit card with confidence — in store, online, and everywhere in between.

Before you tap, swipe or shop online, you’ll need to activate your debit card. Your bank or credit union will walk you through the process, which usually involves setting a personal identification number (PIN).

Your PIN is a secret four- to six-digit code that you use to confirm it’s really you. You’ll enter your PIN whenever you use a bank machine (also called automatic teller machine, ATM, or automatic banking machine, ABM) or when inserting your card at a point-of-sale terminal to make an in-person purchase.

Keep the following in mind when setting up your debit card:

• Choose a secure PIN: Pick a number that’s easy for you to remember but hard for others to guess. Avoid birthdays or repeating digits and be sure to use unique PINs for each of your accounts and cards.
• Protect your PIN: Never share it and cover the keypad at ABMs/ATMs or point-of-sale terminals.
• Link to your chequing account: Most debit cards are tied directly to your chequing account, though you may be able to choose between chequing and savings accounts for some transactions.

When you’re shopping at retailers or small businesses, your debit card offers two different ways to pay:

Some retailers allow you to request extra cash during a debit transaction. Getting cash back is handy if you don’t want to make a separate trip to the ABM.

If you have a Visa* debit card you can use it online at any online Canadian, American, or international merchants that accept Visa* Debit. All you have to do is choose Visa* at checkout and input your Visa* Debit card number, security code, and expiry date at the point of sale.

You can also use the Visa* Debit payment option to pay for things like recurring payments for streaming media or to download or pay for songs and apps. You can even use it to pay your taxes or phone bills online.

Just follow these steps:

• Go to the “checkout”: Some retailers also call this the “payment” page.
• Select card type: Choose Visa (or their “debit” versions, if available) as your payment option.
• Input card details: Enter your debit card number, expiry date and security code. The security code is a three- or four-digit number (called a CVV or CVC) that appears on the back of the card.
• Provide personal information: Input your name as it appears on the card, as well as the address associated with your account.
• Complete the transaction: Follow the instructions on screen to confirm payment. Sometimes your debit card provider will send you a one-time passcode to enter at this stage for extra security.

At checkout, the steps may look similar — enter your card number, expiration date and CVV/security code — but what happens next is different:

• Debit card: When you complete the transaction, the money is taken directly out of your linked bank account, usually your chequing account.
• Credit card: Instead of pulling funds from your account right away, the purchase is added to your credit balance. You’ll receive a bill later from your card issuer, and you can choose to pay it in full (to avoid interest) or carry a balance.

Both types of card payments require you to provide the same type of card information, but only debit transactions connect instantly to your bank account.

Using your debit card online is convenient, but it’s important to take a few precautions to keep your information and money safe. Protect yourself every time you shop or pay bills online by following these simple steps:

• Shop with trusted retailers: Stick to reputable sites or apps. If you’re unsure, look for reviews or see if the same product is available from a well-known seller.
• Don’t save your card’s information: It’s convenient, but if the retailer suffers a data breach, your details could be exposed.
• Check your account statements often: Monitoring your chequing and savings accounts helps you catch unauthorized transactions early.
• Use card limits wisely: Setting daily transaction limits can add an extra layer of protection.

Like any financial tool, debit cards have pros and cons.

Debit card advantages:

• No risk of building up credit card debt or interest charges.
• Widely accepted at ABMs, point-of-sale terminals and online retailers.
• Easy to track spending since it comes straight out of your bank account.
• Some have a rewards program, so you can earn points or cashback for your spending.

Disadvantages of debit cards:

• Depending on your account terms, you may have a limited number of debit transactions allowed per month. If so, you’ll pay a per-transaction fee after you exceed that limit.
• A purchase or payment can be declined if you don’t have enough money in your linked account to cover the transaction.
• Unlike credit cards, debit card usage doesn't help build your credit score.

Like any financial tool, debit cards have pros and cons.

Using a debit card is simple: activate it, set a secure PIN, and you’re good to go. Whether you’re paying bills, shopping in person or making an online purchase, debit cards offer a fast, secure and practical way to access your money.