The idea of debit can be associated with a debt or obligation to pay.
The first thing we are going to do is determine the etymological origin of the term at hand. In this case, we have to explain that it is a word that derives from Latin, specifically from "debitum", which can be translated as "debt" and that it is the result of the sum of three different parts:
-The prefix «de-«, which indicates «deprivation» or «from top to bottom».
-The verb «habere», which is synonymous with «have».
-The suffix "-to", which is used to indicate that "the action has been received."
What is debit
The notion of debit is used in the field of economics and finance . The dictionary of the Royal Spanish Academy ( RAE ) recognizes the term as a synonym for debt : an obligation that must be satisfied or paid.
If we focus on the field of accounting , the debit is an entry that is recorded in the debit and represents something that is already the property of the person. The opposite concept is that of credit , which is recorded in the credit .
The debit card is a very popular means of payment.
Card as a means of payment
Debit cards are one of the most used payment mechanisms today. This is a card that has a magnetic stripe and, sometimes, a chip. This card is associated with a bank account (a savings account or checking account): when the user decides to pay for a purchase with the debit card , the corresponding money is withdrawn from the account in question.
This means that the money used to pay for a purchase with a debit card was part of the subject's assets. If you had 10,000 pesos in your bank account and you make a purchase of 2,000 pesos with your debit card, the available balance will become 8,000 pesos . When a credit card is used as a means of payment, however, the buyer incurs a debt: he or she will have to pay for the purchase in the future.
It is important to note that if the individual lacks a balance in the bank account, they cannot use the debit card, since there is no money available to debit.
Debit vs. credit
There are numerous advantages that debit cards are considered to have over credit cards and among these we can highlight the following:
-The first and most important is that it prevents the person who has one of them from going into debt. And you will only use the money you have in an account to which the card is associated. If there is no money in that account, you will not have any.
-In the same way, the fact that it is much easier to sign up for a debit card than a credit card stands out. This is because for the first one you simply have to open or have a checking account.
-As a general rule, they are usually free and are not associated with any type of maintenance or renewal charge.
-Likewise, it should be noted that they help keep expenses under control, that is, they help not spend more than you should.