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Credit card and Debit card

Working and Management

Aditya Pande
Anurag Goyal
Mrugesh Chikhalikar
Suchet Pajni
Vishal Patel

Introduction to plastic

Evolution of plastic cards

Plastic money A new and easier way of paying for goods

and services

Provides convenient usage alongwith incentives

An alternative to hire-purchase or loan on consumer goods

It,however,allows debt to pile-up that can lead to penalties

Major types of plastic money Credit cards, Debit

cards , Charge cards,co-branded cards

Debit cards

How Did It All Begin?

Introduced around 1977- 1978

The launch highlighted the introduction ofecommerceand alternative means of payment

Credit cards
Introduced in 1980 by Central BOI
Banks acted as clearing houses for transactions and
promoted their own brands
Addition of magnetic strip introduced to enhance
security measures
Launch of ATM machines for ready access
Present scenario - A household name

Credit cards

A part of a system of payments after the small plastic card

issued to users of the system

A card entitling its holder to buy goods and services based

on the holder's promise to pay for these goods and services

The issuer of the card grants a credit to the consumer from

which the user can borrow money for payment to a

Most credit cards are issued by local banks or credit unions,

and are the shape and size-85.60 53.98mm-ISO/IEC
7810 standard

Credit cards
1. Issuing bank logo
2. EMV chip on
"smart cards"
3. Hologram
4. Credit card number
5. Card brand logo
6. Expiration Date
7. Card Holder Name
8. Contactless chip

Credit card numbering

Bank Identification Number

BIN- first six digits for MasterCard and Visa cards

Next nine digits-individual account number

Final digit-validity check code

Issue and expiration dates, extra codes such as issue

numbers and security codes

Credit card numbering

An example of the reverse side of

a typical credit card:
1. Magnetic Stripe
2. Signature Strip
3. Card Security Code

How credit cards work

Transaction steps

Parties involved
Card-issuing bank
Acquiring bank
Credit Card association
Transaction network

Related terms
Interest charges
Benefits to customers
Grace period
Benefits to merchants
Interchange fee
Discount fee

Debit Card

Provides an alternative payment method to cash when

making purchases

Functionally, it can be called an electronic check, as the

funds are withdrawn directly from either the bank account,
or from the remaining balance on the card

It is also known as bank card or check card

Allow for instant withdrawal of cash, acting as the ATM card

for withdrawing cash and as a cheque guarantee card

Merchants can also offer "cashback"/"cashout" facilities to

customers, where a customer can withdraw cash along with
their purchase

Debit Card Numbering

Debit Card Numbering

How Debit Cards work


Collecting payment data

Settlement of funds

Some important tips


a debit card over a credit card

all of your cards hidden fees


pay more than the minimum each month

on time, all the time


use them for cash advances

use them to pay for basics: rent, groceries,


charge more than you can pay off in a month


let banks increase you credit limit

How are they different?

Credit Card
Borrowing money from
a bank or financial
institution. (Spending
"other's" money)
Need not be
connected to any bank
Pay additional interest
drawn on the amount
Limit: Credit line

Debit Card
Funds taken from the
money that you have in
your bank account.
(Spending your "own"
Needs checking
Account/Savings Account
No interest to be paid
Limit: Equals your
account limit

Thank You!