Consumer Debit

Consumer debit refers to a payment card issued to an individual that allows them to spend money directly from their bank account — unlike a credit card, which uses borrowed funds.

When a consumer debit card transaction occurs, the payment is authorised against the available balance in the customer’s account, and funds are typically settled to the merchant within one to two business days.

Consumer debit transactions usually attract lower interchange fees than credit cards, as there’s less credit and fraud risk for the issuing bank.

Example:

A customer uses a Visa Debit card to pay £50 for groceries. The money is deducted instantly from their current account and transferred to the supermarket’s acquirer for settlement.

Used in:

Retail payments, e-commerce checkouts, and day-to-day consumer banking transactions.