A debit card is a payment card that is directly linked to your current account: you pay with money that is already in your account and the amount is debited immediately. You use the card both in-store and online, via the Mastercard or Visa network. The biggest difference with a credit card is that you do not take out credit and therefore do not build up debt.
How does a debit card work?
The functioning of a debit card revolves around one principle: the amount of a payment is directly debited from your current account. You therefore never spend more than the balance on your account, because there is no credit limit behind the card.
Every payment goes through the Mastercard or Visa network, allowing you to use the card worldwide and also pay online with it. On the updated cards, next to your IBAN, there is a sixteen-digit card number and a three- or four-digit CVC code, precisely the details a webshop needs to verify an online payment.
If you use the card for business, it is linked to your business account and every expense immediately appears in your administration. Because the money is processed instantly, you maintain a real-time overview of your balance.
The benefits of a debit card
The benefits of a debit card mainly lie in the convenience and control the card gives you with daily payments. Because you pay with your own money, you always know where you stand and you do not build up any debt. The main benefits at a glance:
Control over your budget: you never spend more than the balance on your account;
No credit check or income requirement to get the card;
Worldwide and online acceptance via the Mastercard or Visa network;
Real-time insight into your spending, immediately visible in the app;
A virtual card that you create in seconds for online payments;
Secure payments with chip, PIN and 3D Secure.
A credit card offers more in some areas, for example when reserving a deposit, but for most payments a debit card is faster and cheaper.
The difference between a debit card and a credit card
The difference between a debit card and a credit card lies in the timing of the payment: with a debit card, the amount is immediately deducted from your account, whereas with a credit card, you pay on credit and settle the bill later. As a result, you cannot run up debt with a debit card, and there is no credit check or income requirement, whereas a credit card offers you precisely that flexibility.
The main differences at a glance:
Feature | Debit card | Credit card |
Timing of debit | Immediate | Afterwards |
Source of funds | Your own balance | Credit from the provider |
Accumulate debt | Not possible | Possible |
Credit check | Not required | Usually yes |
In-store and online payments | Yes | Yes |
Withdraw cash | Yes | Often with extra fees |
Deposit for rental car or hotel | Often not possible | Usually required |
Costs | Generally lower, sometimes free | Usually higher |
Note on deposits: many car rental companies and hotels require a credit card because it allows them to reserve an amount without actually deducting it. With a debit card, this reservation is usually not possible; you could pay the deposit in full, but the money would then actually leave your account.
Business owners looking for credit facilities or purchase protection alongside direct payments therefore often look for a business account with a credit card.
Who can apply for a debit card?
Anyone who is eighteen years or older and has a current account can apply for a debit card. Unlike with a credit card, there is no income requirement and a BKR registration is usually not an obstacle, because you do not take out credit. You do, however, need a sufficient balance in your account, as every payment is debited from it directly.
In practice, you receive the card automatically when opening a current account, often first as a virtual card and then as a physical card by post. For business use, you open an account in the name of your company, after which your card is ready for your first expenses.
From Maestro to Debit Mastercard
The transition from Maestro to Debit Mastercard is the reason why a debit card has become so well-known in the Netherlands in recent years. Since mid-2023, banks no longer issue new Maestro cards and are replacing them with a Debit Mastercard; the Visa variant V PAY is making way for Visa Debit.
Existing cards will continue to work until their expiry date, by 2027 at the latest. The reason for the change is practical: Maestro was primarily intended for payments in physical shops within Europe, meaning you often couldn't use it online or outside Europe.
The updated cards solve this, as they have a card number and CVC code and run on the global network of Mastercard or Visa. The Debit Mastercard is the most well-known variant of this and works both online and at the checkout.
From Maestro to Debit Mastercard
A virtual debit card is a card that only exists digitally, in your provider's app, without a physical plastic copy. You get the same card details as with a physical card, so a card number, an expiry date and a CVC code, with which you can immediately pay online or link the card to Apple Pay or Google Pay.
Because a virtual card is ready immediately after creation, it is handy for online subscriptions, advertisements or a one-off payment to a supplier. You receive a physical debit card by post and also use it in shops and at ATMs. This way, you combine the convenience of instant online payment with a card for on the go.
A debit card for your business
A debit card for your business works the same as a personal card, but is linked to your business account and your administration. You pay business expenses directly from your own balance, keep private and business separate, and see every transaction in real-time, linked to the correct category for your accounting and VAT return.
For teams, you can give every employee their own card with a limit per user using business Mastercards, allowing you to keep control over who spends what. With GoDutch, every business account automatically comes with a virtual Mastercard, and from the Starter package onwards, a physical Debit Mastercard and cashback on every card transaction are included.
If you frequently pay suppliers abroad, you can arrange to transfer money abroad from the same app. GoDutch is not a bank, but a business account that allows you to manage payments, cards, and administration in one place, with your IBAN and card within 1 day.
FAQ
Frequently asked questions about the debit card
Is a debit card the same as a debit card?
A debit card is nowadays usually also a debit card, but that was not always the case. The old debit cards with Maestro or V PAY mainly worked in-store, while the renewed debit cards with Debit Mastercard or Visa Debit also work online and worldwide. The difference between a debit card and a debit card is therefore becoming increasingly smaller.
What is the difference between a debit card and a debit card?
A debit card and a 'debit kaart' are the same: 'debit kaart' is simply the Dutch spelling of the English debit card. Both refer to a payment card that is linked to your account and debits the amount immediately. 'Debitcard' as one word also means exactly the same.
Can you pay online with a debit card?
Yes, with a modern debit card you can simply pay online. The card features a sixteen-digit card number, an expiry date and a CVC code, which is exactly the information an online shop asks for. This was not possible with the old Maestro card, but with a Debit Mastercard or Visa Debit, paying online is no problem.
Can you withdraw cash with a debit card?
Yes, with a physical debit card you can withdraw cash from ATMs, both in the Netherlands and at ATMs with the Mastercard or Visa logo abroad. You need the physical card and your PIN code for this; you cannot withdraw cash from an ATM with only a virtual card. For a business card, additional rules and limits apply to withdrawing cash from your business account, depending on your package.
Can you rent a car with a debit card?
Renting a car with a debit card is sometimes possible, but many rental companies require a credit card for the deposit. They use it to reserve an amount without actually debiting it, which is usually not possible with a debit card. Therefore, check the rental conditions beforehand to see which cards are accepted.
Is a debit card free?
Whether a debit card is free depends on the provider. A debit card is often cheaper than a credit card and sometimes even free of charge, as there is no credit and no credit check (BKR) involved. Check with your provider to see what costs apply to the card and its use.
