Glossary
Expenses & Payables

Debit Card

By: Alec Hollingsworth
Updated:  
June 2, 2025

DEFINITION:

A debit card is a payment card linked to a bank account, used for purchases or withdrawals that deduct funds immediately from the account.
A debit card is a payment card linked directly to a bank account, allowing users to make purchases or withdraw cash by deducting funds immediately from the associated account. For nonprofits, debit cards provide a convenient way to pay for operating expenses, supplies, or travel costs without using cash or checks. Transactions are typically tracked in real time, making it easier to monitor spending and maintain accurate financial records. Debit card usage can streamline expense management, support internal controls, and simplify reconciliation processes for nonprofit organizations, especially when multiple staff members require access to organizational funds.

Key Takeaways

  • Directly linked to a bank account for immediate fund deduction
  • Simplifies expense tracking and reconciliation
  • Reduces the need for cash handling
  • Useful for managing routine nonprofit expenses

Why It Matters

Debit cards help nonprofits control spending, simplify expense tracking, and reduce the risks associated with handling cash.

Real World Example

A small nonprofit uses a debit card to purchase office supplies, pay for volunteer event refreshments, and cover transportation costs. Each transaction is recorded instantly in the nonprofit’s bank account, and staff upload receipts to their accounting software. At month’s end, the finance manager reconciles all debit card transactions in Aplos, matching them to receipts and ensuring they align with the approved budget. This process streamlines expense tracking, minimizes errors, and provides clear documentation for board oversight and financial reporting.

How Aplos Helps

With Aplos, you can easily categorize and track expenses made with your organization’s debit card. Aplos allows you to reconcile debit card transactions with your bank statements, ensuring your financial records are always accurate and up-to-date. This helps maintain transparency and accountability in your nonprofit’s expense management.
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Frequently Asked Questions

How does a debit card differ from a credit card?

A debit card withdraws funds directly from your bank account for each purchase, while a credit card allows you to borrow funds up to a limit and pay later.

Can multiple staff members use the same nonprofit debit card?

Some organizations issue multiple debit cards tied to the same account or use a single card with strict controls and spending policies for authorized staff.

How can Aplos help track debit card transactions?

Aplos enables you to categorize, track, and reconcile debit card expenses to ensure accurate and transparent financial records for your nonprofit.

Are debit card transactions secure for nonprofits?

Yes, debit cards are secure when used with appropriate controls, such as PIN protection, spending limits, and regular reconciliation to detect unauthorized use.

What types of expenses are typically paid with a nonprofit debit card?

Common expenses include office supplies, travel, event costs, and minor operational purchases where quick payments are needed.