Which term describes a payment that removes money from a bank account?

Which term describes a payment that removes money from a bank account?

• A. Electronic payment
• B. Credit
• C. Debit
• D. Check

Answer: (C)

When money leaves your bank account because you’re paying for something, that transaction is a debit. Debits reduce your balance, whether you use a debit card, make an online transfer, or have an automatic bill paid. A credit, by contrast, is money coming in or owed to you, not taken out. An electronic payment is a broad term for paying electronically and can refer to many types of transactions, not all of which involve money leaving your account in the same direct sense. A check also removes funds once it’s processed, but the everyday term that best describes money leaving your account for purchases is debit.

When money leaves your bank account because you’re paying for something, that transaction is a debit. Debits reduce your balance, whether you use a debit card, make an online transfer, or have an automatic bill paid. A credit, by contrast, is money coming in or owed to you, not taken out. An electronic payment is a broad term for paying electronically and can refer to many types of transactions, not all of which involve money leaving your account in the same direct sense. A check also removes funds once it’s processed, but the everyday term that best describes money leaving your account for purchases is debit.