Hello Readers, today we are going to shareDifferent types of Bank Cards.
Types of Bank Cards are available to a customer: Cards can be classified on the basis of their issuance, usage and payment by the card holder. There are three types of cards:-
(a) debit cards
(b) credit cards
(c) prepaid cards.
Who issues these cards:-
1.) Debit cards are issued by banks and are linked to a bank account.
2.) Credit cards are issued by banks / other entities approved by RBI. and may or may not be linked to a bank account.
3.) Prepaid cards are issued by the banks / non-banks against the value paid in advance by the cardholder and stored in such cards which can be issued as smart cards or chip cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers, etc.
Debit Cards:- A payment card that deducts money directly from a consumer’s account to pay for a purchase. Debit cards eliminate the need to carry cash or physical checks to make purchases. In India debit card was mostly used for ATM transactions. Most Indian banks issue Visa debit cards, though some banks (like SBI and Citibank India) also issue Maestro cards. The debit card transactions are routed through Visa or MasterCard networks in India and overseas rather than directly via the issuing bank.
The National Payments Corporation of India (NPCI) has launched a new card called RuPay.It is similar to Singapore’s NETS and Mainland China’s UnionPay
Usages of debit cards: The debit cards are used to withdraw cash from an ATM, purchase of goods and services at Point of Sale (POS)/E-commerce (online purchase) both domestically and internationally (provided it is enabled for international use). However, it can be used only for domestic fund transfer from one person to another.
Credit Cards:- A card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Credit cards charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made and borrowing limits are pre-set according to the individual’s credit rating.
Usages of credit cards:– credit cards are used for purchase of goods and services at Point of Sale (POS) and E-commerce (online purchase)/ through Interactive Voice Response (IVR)/Recurring transactions/ Mail Order Telephone Order (MOTO). These cards can be used domestically and internationally (provided it is enabled for international use). The credit cards can be used to withdraw cash from an ATM and for transferring funds to bank accounts, debit cards, credit cards and prepaid cards within the country.
Prepaid Cards:- Prepaid cards are issued by the banks / non-banks against the value paid in advance by the cardholder and stored in such cards which can be issued as smart cards or chip cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers etc
Usages of Prepaid Cards:- The usage 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 ATM, purchase of goods and services at Point of Sale (POS)/E-commerce (online purchase) and for domestic fund transfer from one person to another. Such prepaid cards are known as open system prepaid cards.
However, the prepaid cards issued by authorised non-bank entities can be used only for purchase of goods and services at Point of Sale (POS)/E-commerce (online purchase) and for domestic fund transfer from one person to another. Such prepaid cards are known as semi-closed system prepaid cards. These cards can be used only domestically.
Maximum value that can be stored in any prepaid card (issued by banks and authorised non-bank entities) at any point of time is Rs 50,000/-.
This is all about different types of bank cards.Please share your experience regarding our site,if u have any suggestions or complaints comment below and subscribe us with your email-id and like our facebook page to be updated withsscjunction.com . Thank You!