What type of card allows a merchant to deduct funds directly from a consumer's bank account?

The type of card that allows a merchant to deduct funds directly from a consumer's bank account is a debit card. When a consumer uses a debit card for a transaction, the amount spent is immediately withdrawn from their linked bank account. This process is different from credit cards, which allow consumers to borrow money up to a certain limit, requiring repayment later with interest if not paid in full each month.

Debit cards are particularly popular for their convenience and ease of use, as they provide a direct connection to the consumer's funds. This limits the consumer to spending only what they have available in their account, fostering more responsible financial behavior.

In contrast, gift cards typically represent a pre-loaded amount of money that can be spent at a specific retailer or group of retailers, rather than drawing directly from a bank account. Charge cards function similarly to credit cards but usually require the balance to be paid in full each month, thus not directly linking to a bank account.