Finance Meaning of words Banking

What does 'debited' mean?

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What does 'debited' mean?

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When an amount is debited from an account, it means that the amount has been deducted or removed from the account. This typically happens when:

  • You make a purchase : Using a debit card or writing a check results in a debit to your account.

  • You withdraw cash : Taking money out of an ATM or bank teller.

  • You pay a bill : Setting up automatic payments that will debit money from your account each month.

  • Fees are charged : Banks may debit your account for service fees.

In summary, a debit reduces the balance of an account. In accounting terms, it records an increase in assets or a decrease in liabilities/equity.

Wrote answer · 3/14/2025
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