7 types of debit cards and how to choose one

Debit cards make it so easy to spend and manage money. Today, kids and teens are using debit cards at earlier ages. There are so many types of debit cards out there, though. Some are tied directly to traditional checking accounts, while others (like prepaid debit cards) require you to add funds to them before use. Then there are debit cards with special perks, like rewards programs or budgeting tools. So which one is right for your family?

Here, we break down the most common types of debit cards, how each is different, and give quick tips to help you decide which type of debit card is right for your family.

What is a debit card?

A debit card is a physical, usually plastic, card that connects directly to your bank account. It can be used to make purchases, transfer money, deposit checks, or withdraw cash from an ATM. Debit cards are linked to your bank account so all transactions are deducted directly from your account balance. Some debit cards may offer overdraft protection, which lets you spend more than what’s currently in your account – but beware because this often comes with additional fees. 

Debit cards vs. credit cards

Unlike a credit card, which borrows money from a bank that you repay later (potentially with interest), debit cards use your personal funds. For this reason, they can also be helpful tools for keeping your budget in check and teaching your kids and family about money management. 

Debit cards can also be more secure than cash. They typically require a PIN or security token to initiate a transaction. Plus, many come with debit card fraud protection against unauthorized transactions.

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7 types of debit cards

With so many choices, it’s helpful to narrow the field by function and features. Here are seven of the main ones you should know about.

1. Standard debit card

This is the classic. It’s linked directly to your checking account and can be used for both in-person and online shopping. You can also use it to withdraw cash from ATMs. 

2. Prepaid debit card

Think of this as a “starter card.” You load money onto it, and once it’s gone, it’s gone (although if it’s a reloadable prepaid debit card, additional funds can be added). Prepaid cards don’t require a bank account, making them an excellent option for younger kids or anyone learning to manage their spending.

3. Virtual debit card

This one lives on your phone or virtual wallet instead of your pocket. It’s useful for online shopping or in-app purchases. Virtual cards add extra security since they don’t involve sharing your physical card details.

4. Contactless debit card

This is another physical debit card that makes it easier to shop on the go. With contactless debit cards, you just tap to pay, so they’re quick to use when you’re in a hurry. Plus, since you don’t need to hand over your card or touch the payment terminal, you get the added perk of avoiding germs!

5. Family debit card

Designed for families (like the Greenlight debit card), these cards often come with features to help parents and kids manage money together. Parents can set spending limits, track transactions, and even assign chores for allowance payments.

6. EMV debit card

These cards have a secure EMV chip (EMV stands for Europay, Mastercard, and Visa), and secures your data during transactions. Many debit cards today now include EMV chips, but not all cards do, particularly older or limited-purpose cards like ATM-only debit cards. 

7. ATM-only debit card

ATM-only cards are exactly what they sound like. They aren’t meant to be used for anything other than withdrawing cash from ATMs and won’t work for online or in-store purchases. This type is less common but can be a simple option for accessing cash without overspending.

How to choose the right debit card

Trying to figure out which of these debit card options is the right choice can be headache-creating. Here are some tips to help.

Think about the purpose

Are you looking for a card to teach your kids financial independence? A prepaid or family debit card is a great choice. Need something for your own daily spending? A standard or contactless debit card might be the way to go.

Look at the fees

Some debit cards come with fees for ATM withdrawals or reloading money. Make sure you understand the fine print so you’re not surprised by extra costs.

Check the features

Family-friendly cards often have tools like spending controls, savings goals, and chore tracking—all of which can be super helpful for teaching financial literacy.

Consider security

Some debit cards (virtual, contactless, or EMV-chipped) provide an additional layer of security. You may want to look for debit cards that offer fraud protection and real-time transaction updates.

Debit cards are super convenient. They’re also a fun way to teach money smarts! Focus on the features you need most to hone in on which debit card is best for your family.

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