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Debiting Meaning: Definition, Examples, and Translations

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debiting

[หˆdษ›bษชtษชล‹ ]

Definition

Context #1 | Verb

banking transaction

Debiting refers to the process of deducting money from a bank account or financial account. This could be related to various activities such as processing payments, withdrawing funds, or recording an expense. Typically, when a transaction is debited, the amount is subtracted from the available balance in the account. It is an important aspect of accounting and personal finance, providing a clear record of outflows.

Synonyms

deducting, removing, subtracting.

Examples of usage

  • I noticed the bank is debiting my account for the monthly subscription.
  • The store will be debiting your card once you complete the purchase.
  • Debiting your account immediately will help you track your spending.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Finance

  • When a debit transaction occurs, it usually reduces the balance in a bank account.
  • Debiting is often associated with debit cards, which allow users to access funds directly from their checking accounts.
  • In contrast to credit transactions, debits require available funds in the account to complete the purchase.

Psychology

  • Studies show people often feel more pain when debiting money than when using cash, due to the abstraction of digital transactions.
  • The act of debiting can create stress for some individuals, especially when it comes to budgeting and managing finances.
  • Knowing that money is being debited can trigger emotions linked to financial decisions, impacting spending behaviors.

Technology

  • With the rise of online banking, the process of debiting has become quicker and more efficient, allowing instant transactions.
  • Mobile payment apps have transformed debit processes, letting users debit money with just a few taps on their phones.
  • Blockchain technology is emerging as a new method for secure and transparent debiting, potentially disrupting traditional banking.

Cultural Impact

  • In many cultures, the concept of debiting is wrapped around the idea of personal financial responsibility and managing oneโ€™s debts.
  • Financial literacy campaigns often include education on the impact of debiting on personal finance, encouraging smarter spending habits.
  • Debiting practices differ worldwide, with some countries using more cash-based systems compared to those favoring electronic transactions.

Origin of 'debiting'

Main points about word origin

  • The term 'debit' comes from the Latin word 'debere,' meaning 'to owe.'
  • Debiting has been used in accounting since the 15th century when double-entry bookkeeping was developed by Luca Pacioli.
  • In accounting, debiting refers not only to money taken out but also to recording liability in ledger accounts.

The term 'debit' derives from the Latin word 'debere', meaning 'to owe'. It originally referred to an entry on the left side of an account in bookkeeping, reflecting the amounts owed. The concept evolved over centuries, becoming central to accounting practices. The term 'debit' entered English financial terminology in the 15th century, coinciding with the rise of double-entry bookkeeping systems, which were popularized by Luca Pacioli, an Italian mathematician. Since then, 'debiting' has become a standard term in banking and finance, widely used to indicate the reduction of funds in an account.

Word Frequency Rank

This word's position of #33,954 indicates it's among the more rare English words. While understanding it broadens your vocabulary, focus on more common words first.