Electronic cards have become among the important activities that banks and financial institutions work in, due to the commission that they receive from individuals and commercial and economic institutions around the world. in order to facilitate their financial transactions. Accordingly, electronic cards are a manifestation of the development in social and commercial life required by the era of globalization.
What are bank cards?
These cards are issued from paper, plastic, or other material whose data is difficult to change or forge, and the name of the customer issued to him is mentioned, his address and his account number with the issuing authority. Credit to the seller who writes his data on the invoice signed by the customer and then the seller sends the invoice to the card issuer, where he pays it to him, and then the card issuer sends the invoice to the customer at the end of each month or during an agreed period requesting its payment.
What is the data of these cards?
card number
It is the number that the issuing bank records in its files and is printed on the card. It consists of a number of digits (from 13 to 16 digits).
Cardholder name
He is the person authorized to use them, or the person to whom the cards are issued.
Release Date
It is the date on which the card was issued and which determines its entry into force.
Expiration date
It is the date that determines the expiry of the card's validity, and it is not permissible to use it after its expiry by the holder.
The name of the issuing bank
It is the bank authorized to issue the card by the international body, and then the card is issued bearing the bank's number and logo.
international body logo
Which authorizes banks and financial institutions to issue the card, for example (Mastercard), MasterCard, or (Visa card).
withdrawal limit
It does not appear on the card that it is registered with the customer's card account on the computers, and it is an amount that may not be exceeded by the customer.
magnetic tape
It is a place on the card dedicated to storing the customer’s electronic data, which the computer needs to know the specific withdrawal limit, the card number, the dates of commercial transactions, and their codes, and data recording is in the form of magnetic pulses that are not visible to the naked eye.
3D hologram
hologram; It is the distinctive mark of the international body that gives permission to financial institutions to issue cards, which is checked to verify that the card is not forged, and this mark is equivalent to a watermark for paper money.
PIN
It is the secret number and consists of four numbers. It does not appear on the card. It is delivered to the customer in an envelope upon receiving the card. Through it, the electronic machine identifies the card owner when it is used in the withdrawal, and it is called the electronic signature.
signature bar
It is the place for the holder's signature when receiving the card so that the merchant or ATM can verify the identity of the cardholder by matching this signature with the holder's signature on the sale notice or teller.
What are the types of bank cards?
Payment cards are an essential part of the payment system established by the banking institution, which provides a hassle-free and cash-free option to make payments and also withdraw funds as per the need of the cardholder. In this article, we will learn about the types of bank cards.
discount cards
They allow the cardholder to transfer funds electronically from their bank accounts and can also be used as ATM cards to withdraw cash using an ATM. Keep in mind that you are not borrowing money with a debit card, you are using the money deposited in the bank account linked to the card, while in credit cards, you are borrowing money to make the payment.
Both debit cards (Visa and MasterCard) have similar functions and both are foreign payment gateway that provides payment facilities to most of the banks in the world. They can also be used to make payments in other countries as well. It is important to note that they do not offer any actual credit to any party, they are just payment methods and depend on different banks to issue cards using these payment methods. Maestro is the name given to the MasterCard brand.
credit cards
Credit cards allow the user to borrow money from the bank and make purchases. The bank or companies that issue the credit card creates a revolving account and gives a line of credit to the cardholder, then the user borrows money for the payments or can also sometimes withdraw cash. Borrowed and also charges interest on late payments.
Here are some of the terms associated with credit cards
- Credit Limit: Represents the maximum credit card balance.
- Balance: The total amount you owe, including purchases, finance charges, and fees.
- APR or Annual Percentage Rate: The interest rate applied to the balance carried forward after the grace period.
- Grace Period: The time allotted to pay your balance.
- Credit Card Fees: Annual or maintenance fees, late fees, and over-limit fees.
Forex Cards
Forex Cards means foreign exchange cards and are used for international flights to hold foreign currency. There are two main variants: single currency cards and multi-currency foreign currency cards. Forex cards can also be used to withdraw currency abroad.
Prepaid cards
Just like with the name on prepaid cards, you can load the amount up front and then use the money to make transactions, it's not linked to any bank accounts. The most common example is prepaid gift cards.
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