credit card and debit card working

8/9/2019 credit card and debit card working

1/18

Credit card and Debit card

Working and ManagementGROUP NO:7

Aditya Pande

Anurag GoyalMrugesh Chikhalikar

Suchet Pajni

Vishal Patel


2/18

Introduction to plasticmoney

!olution o" plastic cards

Plastic money # A ne$ and easier $ay o" paying "or goods

and ser!ices

Pro!ides con!enient usage along$ith incenti!es

An alternati!e to hire%purchase or loan on consumer goods

It&ho$e!er&allo$s debt to pile%up that can lead to penalties

Major types of plastic money # Credit cards& Debit

cards & Charge cards&co%branded cards


3/18

'o$ Did It All (egin) Debit cards

Introduced around *+,,% *+,-

.he launch highlighted the introduction o" e%

commerce and alternati!e means o" payment

Credit cards

Introduced in *+-0 by Central (1I

(anks acted as clearing houses "or transactions and

promoted their o$n brands

Addition o" magnetic strip introduced to enhance

security measures

2aunch o" A.M machines "or ready access

Present scenario % A household name


4/18

Credit cards

A part o" a system o" payments a"ter the small plastic cardissued to users o" the system

A card entitling its holder to buy goods and ser!ices based

on the holder3s promise to pay "or these goods and ser!ices

.he issuer o" the card grants a credit to the consumer "rom$hich the user can borro$ money "or payment to amerchant

Most credit cards are issued by local banks or credit unions&and are the shape and si4e%-5670 8 596+- mm%IS1:IC,-*0 standard


5/18

Credit cards

*6 Issuing bank logo

;6 MV chip on


6/18

Credit card numbering

(ank Identi@cation ?umber

(I?% @rst si> digits "or MasterCard and Visa cards

?e>t nine digits%indi!idual account number

inal digit%!alidity check code

Issue and e>piration dates& e>tra codes such as issuenumbers and security codes


7/18

Credit card numbering

An e>ample o" the re!erse side o"a typical credit cardB

*6 Magnetic Stripe

;6 Signature Strip

96 Card Security Code


8/18

'o$ credit cards $ork


9/18

.ransaction steps


10/18

Parties in!ol!ed

Cardholder

Card%issuing bank

Merchant Acuiring bank

Credit Card association

.ransaction net$ork


11/18

elated terms

Interest charges

(ene@ts to customers

Grace period (ene@ts to merchants

e$ards

Interchange "ee

Discount "ee


12/18

Debit Card

Pro!ides an alternati!e payment method to cash $henmaking purchases

unctionally& it can be called an electronic check& as the"unds are $ithdra$n directly "rom either the bank account&

or "rom the remaining balance on the card

It is also kno$n as bank card orcheck card

Allo$ "or instant $ithdra$al o" cash& acting as the A.M card"or $ithdra$ing cash and as a cheue guarantee card

Merchants can also oEer


13/18

Debit Card ?umbering


14/18

Debit Card ?umbering


15/18

'o$ Debit Cards $ork

*6 Collecting payment data;6 Authentication96 Authorisation=6 Settlement o" "unds


16/18

Some important tipsFDos

Pre"er a debit card o!er a credit card

Hno$ all o" your cards hidden "ees

Al$ays pay more than the minimum each month

Pay on time& all the time

Donts

Dont use them "or cash ad!ances

Dont use them to pay "or basicsB rent& groceries&etc6

Dont charge more than you can pay oE in a month

Dont let banks increase you credit limit


17/18

'o$ are they diEerent)

Credit Card (orro$ing money "rom

a bank or @nancial

institution6 Spending


18/18

Thank You!

credit card and debit card working

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