Understanding debit cards

A debit card allows you to make purchases in-store and online, and withdraw cash at an ATM. A debit card is linked to your everyday bank account. It gives you quick access to your money. There are different types of debit cards with and without fees, some debit cards come with additional features.

How does a debit card work?

When you open a transaction account, you may receive a physical debit card or a digital card that allows you to spend the money in your account. When you use the card to buy something, the money is taken from the available funds in your account.

To use your debit card, you can tap or swipe it when shopping in-store, add it to a digital wallet to pay with your phone, or enter your card number, expiry date and CVV (the three numbers on the back of your card) to shop online. 

Before you apply for a debit card, you’ll need to open a transaction account. Learn how to open a bank account online.

Do debit cards have fees?

Your debit card may have some fees, but depending on the card you choose, you may be able to offset them. For example, some debit cards charge a fee if you withdraw cash from an overseas ATM. While others might offer a cash back incentive. When you choose a debit card, make sure to check what fees may apply.

With a NAB debit card, you won’t be charged interest when you use your debit card to pay for something. However, you may be charged interest if you overdraw your account.  You can easily check your account balance in the NAB app or NAB Internet Banking.

Differences between debit and credit cards

Unlike a debit card, which allows you to spend your own money, a credit card provides access to borrowed money from the bank, up to a set limit. Each month, you then need to pay back the minimum amount listed on your statement or the entire amount by the repayment due date. If you don’t, you’ll be charged interest on the outstanding balance. You’ll also be charged a late fee if you miss a credit card repayment.

Credit cards can offer benefits like cash back, complimentary insurances, and rewards points, which can be redeemed for flights and gift cards. They tend to also come with higher fees. Whether or not you meet your credit card repayments can also have an impact on your credit score.

Learn more about how credit cards work, and how to choose the right credit card for you.

How to apply for a debit card?

You can apply for a NAB debit card if you meet the age requirements, are an Australian resident for tax purposes and can verify your identity. Explore our debit cards and learn more about the quick application process. Remember that to apply for a debit card, you first need to open a transaction account.

Customers aged 8 to 13 can apply for a NAB Debit Card by visiting a branch. Learn more about debit cards for teenagers.

How to activate your debit card

Once you’ve received your new debit card, it’s easy to activate it and set your PIN. Read our step-by-step guide to activating your debit card.

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Important information

Personal Transaction and Savings Accounts Terms and Conditions

Target Market Determinations for these products are available at nab.com.au/TMD.

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