Debit cards (also called client cards or bank cards) are payment cards issued by your bank to give you access to your chequing or savings accounts. You can use debit cards for in-store purchases and ATM withdrawals in Canada or internationally. If you have a Visa Debit card or Debit Mastercard card, you can also use your card to make purchases online.
Debit cards only allow you access to your account balance, unless you have overdraft protection, which lets you dip into a negative balance (usually for a fee). If you want access to money that is not in your account, consider a credit card instead.
You can link almost any everyday bank account to a debit card as long as those accounts are from the same bank that issued the debit card. You can typically link both savings or a chequing accounts. The account needs to be a Canadian account and must be in the same name as it appears on the card. It can also be a joint account.
To make comparing even easier we came up with the Finder Score. Welcome offers, account fees and features across 60+ chequing accounts and 25+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the account - simple.
Visa Debit cards and Debit Mastercards work like any other debit card, giving you access to the money from your chequing account. The advantage of Visa Debit and Debit Mastercard cards is that, unlike traditional debit cards, they allow you to make online and phone purchases like you can with credit cards.
They don’t give you access to credit, but they do come with a card number, expiry date and CVV number. The best debit cards in Canada, including many of the cards listed here, will come with this functionality.
Yes, most debit cards in Canada have a Card Verification Value (CVV) code, which can also be known as a card verification code (CVC). This number acts as an additional security step in fraud prevention by proving to merchants that you have the actual debit card with you when making online or phone purchases. Only Visa or Mastercard cobranded debit cards will have CVV numbers.
The three-digit CVV security code can be found on the back of your debit card, either right beside or below the signature box beneath the long black magnetic strip. Don’t get it confused with the 16-digit card number or the four-digit expiration date.
If your debit card does not have a CVV security code, it’s likely because it is a traditional debit card – not a Visa Debit or Debit Mastercard – and cannot be used for online or over-the-phone purchases.
If you would like switch your card for one that you can use beyond in-store purchases, contact your bank to see about upgrading your card, or consider opening a new account that comes standard with a Debit Mastercard or Visa Debit card from the accounts listed here.
Yes, you can use your debit card in the US just like you would use it in Canada as long as it has a magnetic stripe and PIN number. The main factor to keep in mind when using your Canadian debit card in the US is that you’ll be charged an exchange rate markup and foreign transaction fee of around 2% to 3% of the transaction value.
If you want to save money when using a Canadian debit card in the USA, consider opting for a debit card with no foreign transaction fees.
If your debit card got declined, even though you have money in your account, it is often because your account has been frozen. Banks will freeze a chequing account if you’ve had too many incorrect attempts at entering your PIN number, or if there have been out-of-the-ordinary purchases from your account that the bank deems suspicious.
If you suspect your bank account has been frozen, it usually only takes a quick phone call with your bank to get it unfrozen. Read our full guide to reasons why your debit card may be declined to learn about other possibilities and how to fix the issues.
Many banks allow youth to open a kids chequing account – and get a debit card – between the ages of 12 to 16 years old without a parent or guardian. If a parent or guardian can get involved, any child under 18 years old can open a bank account at the major banks in Canada, and in most cases, get a debit card linked to that account.
If you’re looking for a debit card for your child, compare debit cards for kids.
When you are looking for a bank account, the type of debit card that comes with it should play a role in your decision. You will usually be looking for a few different factors, including:
Debit cards come with a number of benefits that make them a viable option:
There are also a couple of drawbacks to consider before you sign up for a debit card:
To get a debit card, you’ll need to open a bank account with a Canadian bank. Follow these steps to open an account and get a debit card:
Using your debit card is simple. Just swipe or insert your card into the debit terminal, select the account you want to debit the money from, enter your 4- or 6-digit PIN number and press OK.
If your car is equipped with Tap & Go® or payWave, just hold your card near the terminal to pay – no PIN required.
Debit transactions in Canada are processed through a payment processor system like Moneris. Your merchant will also pay a fee for debit transactions. The amount of your purchase is deducted from the chequing or savings account associated with your card, whichever you selected
Tap payments are a type of contactless payments that work via NFC (Near Field Communication), where you simply need to hold your car close to the debit terminal to pay with your debit card. You can’t debit from your savings using tap. Instead, money is automatically debited from your primary chequing account.
Tap & Go® and payWave are both technology that allows you to securely pay for your purchases without having to swipe your debit card or enter your PIN. Instead, you simply tap or wave your debit card at the point of sale.
Take a look at your debit card and see if it has the payWave or Tap & Go® symbol on the front. The symbol consists of four curved lines and will likely be located on the right-hand side of the card, but this can differ between cards. If your card doesn’t have the symbol, you can call your bank to get a new card.
You can add most debit cards in Canada to your phone’s digital wallet so you can pay with your debit card using Samsung Pay, Google Pay or Apply Pay. Your phone uses NFC so you simply need to select your debit card from your digital wallet and hold your phone near the debit terminal to make a payment.
In order to make purchases with your debit card using your smartphone’s digital wallet, you’ll need to first add your debit card to the digital wallet by following these steps:
You can now use your debit card directly from your phone by tapping your phone at any terminal that accepts tap payments.
Here are some common questions about how debit cards in Canada work.
When paying for purchases at a store, you enter your PIN at the point of sale to authorize the transaction on your debit card. Some banks will provide you with a PIN, which you can use one time and then you will be prompted to enter a new PIN. Most banks recommend that you change your PIN regularly for security reasons.
The only way you can use your debit card to make purchases online is if you have a Visa Debit or a Debit Mastercard. These cards let you spend money out of your bank account to shop online. Check out some more frequently asked questions about online purchases below:
Most banks will let you use your debit card overseas but it will cost you more than what you’ll have to pay to spend money in Canada. Find the answers to frequently asked questions about using your debit card internationally below:
Like any financial product, debit cards come with the risk of being exploited by scammers. But there are steps you can take to protect your money from potential threats.
Debit card fraud occurs when someone else obtains your debit card details and makes transactions on your card without you knowing. If you report a fraudulent transaction on your card, your bank should deactivate your card immediately in order to prevent the person from making more transactions. An investigation will likely take place to help retrieve or replace your money.
You should always check your debit card statement to make sure all of the transactions listed are legitimate. This will help you identify any unusual activity.
If your card is lost or stolen, let your bank know straight away, even if you’re travelling overseas. In most cases, your bank will immediately cancel your card and will send you a replacement card as soon as possible.
This depends on your bank and the situation. Many of the bigger banks offer a 100% money-back guarantee on fraudulent transactions if you comply with the card’s conditions of use. For more information, speak to your financial institution.
There are a number of ways that debit cards differ from credit cards. The most important difference relates to how you access funds. Debit cards only let you access cash that you’ve got saved up in your account. Credit cards let you “borrow” money that you eventually have to pay back with interest.
Other differences between debit and credit cards include:
If you spend too much money on your debit card, or overdraw, it means you’ve used your debit card when your account balance was zero or really low, and you spent more than the amount you had in your account, resulting in a negative balance. You may be charged a non-sufficient funds (NSF) fee (usually around $50) as a penalty for dipping into a negative balance.
The only way you can avoid an NSF fee is if you have overdraft protection on your account. This feature allows the transaction to occur even if you happen to go into the red because a bill comes out early or you have an unexpected expense.
If your account has overdraft protection, your transaction will go through even when your balance is $0. However, this feature may come with a fee and interest, which is why it’s important to always ensure you have enough money in your account for automatic payments, such as your monthly bills.
You can compare debit cards and the bank accounts they’re attached to by looking at the following features:
Compare accounts with debit cards
In both Q1 and Q2 of 2023, approximately 1 in 10 Canadians were looking to open a chequing account — the predominant day-to-day bank account that includes a debit card.
Debit cards let you access your savings or chequing account on the go. You can use them to withdraw money from ATMs or to make purchases in store. You can also use them to make purchases online if you have a Visa Debit or Debit Mastercard. While most Canadians have a debit card, many prefer to make purchases using a credit card. This is because credit cards tend to offer more rewards and benefits than debit cards.
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Convenience fees can apply to debit card transactions as well as credit card payments, but only a small number of select merchants can legally charge them in Canada.