A debit card is a payment card connected to a current account at a bank or e-money institution.
During debit card transactions, the payment amount is automatically put on hold in this account and not immediately transferred to the merchant. Instead, yours and the merchant’s accounts communicate to facilitate the transfer which can take a few days to process. Once complete, you will see the transaction in your account as complete as opposed to pending.
Because the debit is deferred this way, it’s possible to overdraw the account. It is nevertheless common for banks and account providers to reject payments exceeding the balance in your account or agreed overdraft limit, if a negative balance is allowed.
That said, it’s worth keeping track of pending transactions against incoming payments to avoid penalty fees if you do go over the account limit.
A debit card typically doesn’t charge for ATM cash withdrawals, and all card machines accepting the card brand (Visa, Mastercard, etc.) will accept a business debit card. The current account also allows typical banking transactions like standing orders, Direct Debits, Bacs and Faster Payments.
If the balance goes into the overdraft allowance (negative balance), the bank or e-money institution charges overdraft fees based on the amount and number of days in the negative balance. Few business debit cards have this facility, though.