First Debit Card

About First Debit Card

The First National Bank of Seattle issued the first debit card in 1978. Unlike credit cards, debit cards draw directly from the cardholders bank account. Debit cards grew slowly at first. The Visa Debit card launched in 1984. By the 1990s, debit card usage grew rapidly as consumers sought cash alternatives. In 2004, debit card transactions surpassed credit card transactions in the US for the first time. Debit cards were subject to the Durbin Amendment in the Dodd Frank Act, which capped interchange fees for large banks. The fee cap reduced bank revenue but did not significantly reduce debit card usage. Contactless payments, mobile wallets, and tap to pay are the latest evolution of debit card technology.