Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

A debit transaction operates by directly withdrawing funds from the cardholder's bank account when a transaction is made, using a bank card. This means that when a debit card is used, the amount of the purchase is deducted from the available balance in the account, leading to an immediate impact on the account’s balance. This process allows users to spend only the money they have in their account, making it a simple and effective method of accessing funds for purchases.

In contrast, other options describe scenarios that do not accurately reflect the mechanics of a debit transaction. For instance, increasing the balance in the cardholder's account implies a deposit rather than a withdrawal. Withdrawing cash without using a bank card typically refers to cash withdrawals from an ATM or the bank directly, which is not specific to the operation of a debit transaction. Lastly, creating an interest-bearing loan pertains to credit accounts, not debit transactions, since debit cards do not involve borrowing money or interest charges; they simply access the existing funds within the account.