Cards issued by banks: Debit, Credit and Prepaid

WEeb.in Team    GK    Total Views: 474    Posted: Dec 15, 2021   Updated: Sep 19, 2023


Cards issued by banks: Debit, Credit and Prepaid

Cards can be classified on the basis of their issuance, usage and payment by the card holder. There are three types of cards: Debit cards, Credit cards and Prepaid cards.
These cards can be issued by banks or other entities too. We will discuss each type of card and the issuance authority for particular type of card.

  • Credit Card: A feature of a credit card is that the issuer of the card creates aline of credits (usually called a credit limit) for the cardholder on which the cardholder can draw (i.e., borrow) for payment to a merchant in making a purchase or as a cash advance to the cardholder. Most credit cards are issued by or through local banks or credit unions, but some non-bank financial institutions also offer cards directly to the public.
  • Debit Cards: A feature of a debit card (also known as abank cardcheck card or some other description) is that when a cardholder makes a purchase funds are withdrawn directly from either the cardholder’s bank account or from the remaining balance on the card. In some cases, the “cards” are designed exclusively for use on the Internet, and so there is no physical card.
  • Charge Card: A feature of a debit card (also known as abank cardcheck card or some other description) is that when a cardholder makes a purchase funds are withdrawn directly from either the cardholder’s bank account, or from the remaining balance on the card. In some cases, the “cards” are designed exclusively for use on the Internet, and so there is no physical card.
  • ATM card: An ATM card (known under a number of names) is any card that can be used in automated teller machines (ATMs) for transactions such as deposits, cash withdrawals, obtaining account information, and other types of transactions, often through interbank networks. Cards may be issued solely to access ATMs, and most debit or credit cards may also be used at ATMs, but charge and proprietary cards cannot.
  • Stored- Value Card: A feature of a stored-value card is that a monetary value is stored on the card, and not in an externally recorded account and differs from prepaid cards where money is on deposit with the issuer similar to a debit card.
  • Fleet Card: A fleet card is used as a payment card most commonly for gasoline, diesel, and other fuels at gas stations. Fleet cards can also be used to pay for vehicle maintenance and expenses at the discretion of the fleet owner or manager. In the same way that some fleet managers utilize hos tracking systems and other software tools to streamline their business processes, a fleet card is also an effective approach to monitor expenses and ensure the business runs smoothly.
  • Smart Card: A smart card is plastic card about the size of a credit card, with an embedded microchip that can be loaded with data, used for telephone calling, electronic cash payments and other applications and then periodically refreshed for additional use.
  • RuPay Card: RuPay is an Indian domestic card scheme conceived and launched by the National Payments Corporation of India (NPCI). It was created to fulfill the Reserve Bank of India’s desire to have a domestic, open loop, and multilateral system of payments in India.
  • MasterCard: Worldwide credit card corporation that works with financial institutions to issue credit cards. The credit cards distributed by the company are done so under the MasterCard brand, which is one of the three major credit cards accepted at vendors across the world. Master Card converted from a privately held company to a public company on May 25, 2006.

 



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