Here’s how they work. When you use your debit card to buy something or withdraw money from an ATM, the transaction usually takes three important steps:
- One. The transaction is forwarded through what is called a payment processor.
- Two. The processor routes the transaction to an ATM/debit network.
- Three. The network then sends the transaction to your bank or credit union. Your financial institution verifies the availability of funds and then approves or declines the transaction.