ALL ABOUT BANK CARDS - IMPORTANT KEY POINTS
Introduction:A Bank Card is a plastic card issued by a bank. It is used for clients that redact one or more of a number of services that relate to giving the client access to funds, either from the client's own bank savings account, or through a credit account.
Cards can be classified on the basis of their usage, payment and issuance by the card holder. There are three types of cards –
- Prepaid Cards
- Credit Cards
- Debit Cards
Prepaid cards are issued by the banks or non-banks against the value paid in advance by the cardholder and amassed in such cards which can be issued as smart cards or chip cards, internet accounts, magnetic stripe cards, mobile accounts, paper vouchers, internet wallets , mobile wallets etc.
The use of prepaid cards depends on who has issued these cards. The prepaid cards issued by the banks can be used to withdraw cash from an Automated Teller Machine (ATM), purchase of goods and services at Point of Sale (POS) or E- commerce (online purchase) and for domestic fund transfer from one person to another. Such prepaid cards are known as Open System Prepaid Cards (OSPC).
Credit Cards:
Credit cards are issued by banks or other entities approved by RBI. The credit limits authorized to a card holder is in the form of a rotary line of credit and may or may not be linked to a bank account.
The credit cards are used for purchase of goods and services at Point of Sale (POS) and E-commerce (online purchase) or through Interactive Voice Response (IVR)/Recurring transactions/ Mail Order Telephone Order (MOTO). These cards can be used domestically and internationally. The credit cards can be used to withdraw cash from an ATM and for transfer funds to bank accounts; credit cards debit cards and prepaid cards within the country.
Debit Cards:
Debit cards are emerged by banks and are linked to a bank account. The debit cards are used to withdraw cash from an ATM, purchase of goods and services at Point of Sale (POS) or E-commerce both domestically and internationally. However, it can be used only for domestic fund transfer from one person to another.
Credit cards are issued by banks or other entities approved by RBI. The credit limits authorized to a card holder is in the form of a rotary line of credit and may or may not be linked to a bank account.
The credit cards are used for purchase of goods and services at Point of Sale (POS) and E-commerce (online purchase) or through Interactive Voice Response (IVR)/Recurring transactions/ Mail Order Telephone Order (MOTO). These cards can be used domestically and internationally. The credit cards can be used to withdraw cash from an ATM and for transfer funds to bank accounts; credit cards debit cards and prepaid cards within the country.
Debit Cards:
Debit cards are emerged by banks and are linked to a bank account. The debit cards are used to withdraw cash from an ATM, purchase of goods and services at Point of Sale (POS) or E-commerce both domestically and internationally. However, it can be used only for domestic fund transfer from one person to another.
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