Stimulus Check vs Debit Card: Difference and Comparison

A term that has gained maximum importance among Americans is “Stimulus Check”. According to recent news, the Corona Virus relief money or the Stimulus Check would be issued via Debit cards.

Mailboxes and Bank accounts of millions of Citizens of the US are getting hit by this Stimulus money since the beginning of every pandemic.

Those customized Debit cards, which would hold money, especially for Corona Virus Relief Bill, were started by IRS and U.S. Treasury Department.

The amount is being sent via Debit cards to fasten the delivery of payments. This change also opens a chance for those people who didn’t get money in the first round.

In this article, we will learn how Stimulus Check is related to Debit Card and how they differ from each other individually.

Key Takeaways

  1. Stimulus checks are payments issued by the government to individuals, while debit cards are payment cards linked to bank accounts.
  2. Stimulus checks are sent through mail or direct deposit, while debit cards are mailed directly to recipients.
  3. Stimulus checks are considered a form of economic relief, while debit cards can be used for various transactions beyond just receiving government payments.

Stimulus Check vs Debit Card

A stimulus cheque is money that the government gives to taxpayers. Paper checks or direct deposits are used to make stimulus payments. They aim to strengthen the economy during tough times. While a debit card is used automatically withdraws funds from the user’s checking account.

Stimulus Check vs Debit Card

The U.S. government distributes a stimulus check to some people who qualify for the eligibility criteria. The eligibility criteria are based on the annual earnings of a single person or couple/ married people. At the same time, any layman and citizen can carry a virtual or physical debit card if he or she has a bank account and some savings.

The debit card deducts the money directly from the cardholder’s bank account while initiating a transaction or payment. Whereas in Stimulus checks, previously, the amount was distributed in Check(who did not have a bank account), but now the stimulus checks are distributed via debit cards to ease and fasten the distribution and delivery process.

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Comparison Table

Parameters of comparisonStimulus CheckDebit card
Basic differenceA stimulus check is a paper check.A debit card is a rectangular piece of plastic card.
Also known asStimulus Check is also known as Corona Virus Relief Bill or Economic Bill.Debit Card is also known as ATM, bank, payment, or check cards.
OriginStimulus Check came into existence in March 2020A debit card has been used for many years, even before the Pandemic.
PurposeThe main purpose of the Stimulus check is to protect the marginalized and vulnerable people facing economic hardships due to the pandemic.The main purpose of a debit card is to purchase goods and services via the money available in the cardholder’s bank account.
AmountThe provision of the amount via Stimulus check is fixed according to different stages of eligibility criteria.The amount of money an individual spends via debit card is not fixed; the cardholder can spend as much money as he wants that is available in his account, adhering to a daily limit of debit cards.

What is A Stimulus Check?

In layman’s terms, a Stimulus Check is a check. The U.S. government sends this check, which a taxpayer receives. Generally, this check is a small part of a larger federal stimulus package.

These Checks are specially designed to support the country’s economy.

The main intention behind developing the concept of Stimulus checks is to stimulate the economy. The economy is stimulated by providing some “spending money” to consumers.

The primary purpose behind this concept is to drive revenue to manufacturers and retailers. Along with that, it boosts consumption and simultaneously the economy.

In the wake of people losing their jobs, the U.S. government sent the citizens Stimulus payments.

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Stimulus money relieved those who faced unemployment issues and economic hardships due to the pandemic.

stimulus 1

What Is A Debit Card?

In layman’s terms, a debit card is a type of payment card that deducts money from the account directly when used. There is the various purpose for using debit cards. They can be used to get cash or buy services and goods.

The cash can be retrieved from an ATM ( Automated Teller Machine) or a merchant.

A debit card resembles any charge card, in a rectangular plastic piece. This card has its prior linkage with the Union of Credit bank account.

The debit has its limit; only the amount available in the account can be deducted via debit card.

A debit card has several limits, unlike credit cards. These have daily purchase limits as well. For example, if the daily withdrawal or transaction limit is $400, you can not spend more than $400 daily via a debit card.

Some debit cards can even be used with or without a PIN.

Any amount spent via debit card corresponds with the amount available in the checking bank account.

debit card

Main Differences between Stimulus Check and Debit Cards

  1. Stimulus Check is used to Stimulus the economy of other U.S., whereas the debit card has no such purpose. The use of a Debit card is an individual’s choice, and it is not collective, like a Stimulus check.
  2. The Stimulus Check is issued to citizens facing economic hardships. However, any individual with a bank account can carry a debit card with him or her.
  3. The Stimulus check is a special provision to U.S. citizens, whereas a debit card comes automatically with a bank account and is common all over the globe.
  4. Anybody not having a bank account would still get the Stimulus money by paper check. However, a person who doesn’t have a bank account can not hold a debit card.
Difference Between Stimulus Check and Debit Card
References
  1. https://www.nber.org/papers/w27693
  2. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3608774

Last Updated : 11 June, 2023

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21 thoughts on “Stimulus Check vs Debit Card: Difference and Comparison”

  1. I found this article to be quite enlightening and informative. It has provided a deep insight into the concept of Stimulus Checks and Debit Cards.

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