Debit is an accounting term used to describe the transfer of money from one account to another. It can be a physical transaction, such as withdrawing cash from an ATM, or it can refer to a virtual transaction, such as paying with a credit card. When a debit transaction occurs, the money is taken out of one account and put into another. This could be done as a business transaction where two companies are exchanging funds, or it could be done as an individual purchase. In either case, the result is the same – an increase in the balance in one account, and a decrease in the balance in another.