By bank card. What are the types of bank cards and payment systems? Visa payment system
Guys, we put our soul into the site. Thank you for
that you discover this beauty. Thanks for the inspiration and the goosebumps.
Join us at Facebook and In contact with
We use bank cards every day. Withdrawing money from an ATM, cashless payments for purchases and bills, making payments with friends - this is just a short list of the usual financial transactions... But there are a few little things related to bank cards that we don't even think about.
site talks about the little secrets of bank cards that will increase your financial literacy.
1. We decrypt the card number
- Most cards have a 16-digit number (less often 13 or 19 digits). The first digit is the payment system identifier (4 - VISA, 5 - MasterCard). The next 5 digits identify the issuing bank. So, knowing only 6 digits, you can find out about the type of card, payment system and the bank that issued it. Check it out for yourself.
- The next 9 digits are only useful to the bank, as they identify the specific cardholder. It is much more interesting to check the card for authenticity by number.
2. The check number and the magic of numbers
- Directly the card number is determined by the numbers from 9th to 15th. They are assigned by a special algorithm. The probability of coincidence of all 7 digits of a number on two maps is negligible, since the number of possible variations of a 7-digit number is greater than that of inhabitants on Earth.
- The last digit (check number) is calculated mathematically using the Luna algorithm. It is she who prevents unintentional errors that occur during manual input. Luna's algorithm is easy to check on your own bank card.
3. Map under ultraviolet light
- Few people know that bank cards are protected in the same way as ordinary money. For example, one of the methods of protection is the application of authenticity marks that can be seen under ultraviolet radiation. On Visa cards- the letter "V", on MasterCard - the letters "M" and "C", on American Express - the image of an eagle.
4. Credit or Debit?
- The card can be credit or debit. Their main difference lies in whose money is on the card - a client or a bank. Credit cards are often issued in addition to debit cards. Most importantly, remember that the bank is not entitled to issue a credit card for you without your knowledge.
- Overdraft cards are a compromise between credit and debit cards. An overdraft card allows overspending, but usually the limit on them is lower than on credit.
5. Technical overdraft
- There is a concept of "technical overdraft", when an amount that exceeds the available spending limit is debited from the card. Debt may arise when paying in foreign currency in another country (due to exchange rate differences) or if the account was replenished with money from a card of another bank, and immediately after the replenishment they were withdrawn.
- There is no need to be afraid of a technical overdraft: it is canceled automatically after the money is credited to the account, and interest is not charged on it.
6. The reverse side of the card
- WITH back side card is another guarantor of the safety of your money - CVV code (for VISA) or CVC (for MasterCard). CV in both cases stands for Card Verification. This code, assigned to your card, confirms that it is genuine.
- CVV allows you to make payments without the physical presentation of the card and is required, for example, when shopping online. With its help, you can make a purchase remotely (knowing other card details). Like the PIN, it is better not to show it to anyone or tell it, especially if someone insistently asks you to voice it.
Safety rules when using cards
- If you make purchases over the Internet, carry out transactions only on trusted sites, make sure that the site uses the https protocol for financial transactions. This will protect your data from leakage.
What is a bank card? This is a modern payment instrument, without which it is impossible to imagine financial system... A small piece of plastic with a chip, magnetic stripe and the owner's initials as a key provides access to the account. With its help, you can withdraw cash, replenish your account, make transfers, pay for services, control your balance, save money and increase your savings.
A plastic bank card lives in almost every Russian wallet, and often not in a single copy. Only some use all the cards at once, really out of necessity, while others keep them "just in case", "left from old work", etc. In order for your cards to be of use to you, you need to know at least a little about their purpose and varieties.
Types of bank cards
There are many criteria and signs by which you can classify bank cards:
- By account type: credit or debit.
- By the name of the payment system: Visa, Mastercard (Maestro), MIR.
- Tariff and Co-branding: Social, Aeroflot, M-Video bonus, etc.
- By class: the lowest lines of the economy segment are occupied by Visa Electron and Maestro cards from Mastercard, and at the top of the list are platinum and premium cards.
- By the type of protection and information content: chipped, with a magnetic stripe.
- By personalization: registered and Noname.
- On the principle of a material medium: virtual or real.
- By the name of the issuing bank (the bank that issued the card).
Credit and debit cards
A debit card is an account for storing your own funds: receiving a salary, replenishing in order to make settlements, savings. A debit account cannot have negative balance(excluding service).
A credit card gives access to the bank's money, limited by a certain limit: this is an account that can have a negative balance. The credit card has a revolving limit: having issued it once, you will not have to think about that for 3-5 years. Banks attract customers with additional amenities in the form grace period, accrual of interest on a positive balance.
Any card has its own service tariff, which depends on the list of connected services, the type of account and the issuing bank. According to the tariff, the client pays the bank for servicing the card - from 0 to 15,000 rubles per year. Free service is typical for lower class debit cards and special rate cards. The highest price will have to be paid for a premium segment card stuffed with insurances and additional services.
Tariff and Co-branding
Certain tariffs and cards issued jointly with another company have gained special distribution and popularity. For example, almost everyone has a free "Social" from Sberbank or as it is also called "a card with daisies": child benefits, pensions, compensations, scholarships are issued for it.
Those who save up for vacation and quite often make air flights opt for cards from famous airlines: for example, Aeroflot.
Many also use cards that simultaneously function as bonus and debit cards: for example, Tinkoff Aliexpress, M-video Bonus from Alfa Bank, Malina card, etc.
Payment system type
The overwhelming majority of bank cards use payments through processing centers Visa or Mastercard. However, in Russia, recently, its own has appeared, designed to replace foreign counterparts.
If you plan to use your card only in Russia, it doesn't matter which payment system you prefer. you will only feel when calculating in countries with a different currency.
Map class
- The lowest class - VisaElectron, MasterCardMaestro (typically inexpensive service, a minimum set of incoming services);
- Middle class - VisaClassic, MasterCardStandard (optimal set of services, affordable price service);
- Top class - silver Silver, gold Gold, Platinum Platinum (cards for status clients with a wide range of services and relatively expensive service);
- Premium class - black Premium cards (the highest level - for wealthy customers: the maximum range of services, expensive card content).
The class of the card also depends on the maximum daily limit for transactions and cash withdrawals. Do not be surprised if you cannot withdraw a large amount through an ATM from Maestro or Electron: for such cards, the daily limit is limited to 15-50 thousand.
Type of protection and content of information
Customer data is written to an embedded chip or magnetic stripe. A card can have both resources at the same time. The chip protects information better: if you simply swipe through the terminal with a magnetic stripe to pay for the purchase, then when using a chip card, you will need to enter a pin code.
The new generation cards are equipped with PayPass technology - “one touch payment”.
Personalization
It is customary to see your name and surname on the map in Latin transcription - this is evidence name card... But often there are blank cards with the inscription Noname or Cartholder: this is a specially issued plastic for the client's account - such cards were invented for this purpose. So that the client can instantly use banking services... As a rule, an unnamed card is issued for the period while the bank issues full plastic.
Material carrier
It is not necessary to have a piece of plastic in your hands to make calculations. If you mainly buy on the Internet, it will suit you virtual card... Most often, it is opened in order to secure the funds on the main card and not show its data in unverified online stores.
Issuing bank
It is more customary for users to distinguish cards by the name of the bank that issued it: Sberbank, Alfabankovskaya, VTBshnaya, etc. The name of the bank does not characterize the card in any way, but nevertheless this type of classification is used among the people.
Banking payment card is a personified plastic card with a magnetic stripe or chip module, which is an access key to managing a bank account and provides its owner with the possibility of cashless payment for goods or services in various trade and service enterprises that accept cards for payment, receive cash at bank branches and ATMs, as well as use other additional services and certain benefits.
Appearing in the middle of the last century, bank cards spread in more than 200 countries around the world and have become an integral attribute of a civilized person.
Today bank cards are key elements of electronic banking systems, increasingly replacing the usual checkbooks and cash. The feature that is on map contains certain information that is necessary for accessing a bank account, making payments for goods and services, as well as withdrawing cash, allows payment card serve as a simple and progressive tool in the organization of cashless payments.
Besides that bank plastic card provides 24/7 access to bank account , the holder of such a card has a number of advantages. A complete list of these benefits depends on the type of card. However, whatever card, its advantages over cash are as follows:
- Reliability... A loss bank card does not mean that the money is gone. The card can be stolen, it can be lost, it can burn out in a fire, but the money will still be kept in the bank account. Even if someone gets hold of by credit card, he will not be able to use the funds due to reliable protection.
- Convenience... At the holder cards the problems associated with delivery when paying for goods and services disappear. He will not be able to give out counterfeit bills, short-circuit and under-deliver change, and the size of the wallet will not change from the size of the amount to bank card.
- Simplicity... When traveling abroad at the holder bank card there are far fewer problems than when exporting cash. The card is the key to access money on bank account, which means that he does not need to declare it. There is also no need to exchange currency for local, since when paying for goods and services, the conversion is carried out automatically.
- Saving... When carrying out foreign exchange transactions abroad, the costs associated with this are reduced, since the conversion is carried out for more favorable rate than in exchange offices.
- Income... Unlike cash, funds deposited in a bank account, which the holder uses when carrying out transactions using the card, bring additional income in the form of interest on the balance of funds.
- Control... Having a map is very convenient to control family budget and do home bookkeeping. Holder bank card there is no need to remember how much and what he spent money on, since you can always get an account statement.
Depending on the type of settlement scheme, credit and debit cards are distinguished:
Credit card is a universal means of payment, with which the cardholder can make payments for goods and services and receive cash not only at his own expense, but also at the expense of a loan provided by the bank.
main feature credit card- opening of a credit line by the bank, which is used automatically every time a product is purchased or a loan is taken in cash (cash withdrawal). The credit line is valid within the limit set by the bank. In some systems, banking credit card can be used for preferential payments for certain types of services, as well as for receiving money from ATMs.
The credit limit is determined by the issuing bank to each owner credit card individually, depending on the financial condition of the client and his credit history... After the end of the reporting month, the client receives an account statement, which indicates how much of the loan he has to repay in order to renew the credit limit.
The issuing bank, as a rule, sets specific terms for the client to repay the loan. In case of delay in repayment of the loan, the bank has the right to charge the interest agreed in advance with the client for each day of delay.
Conditions for granting a loan and the procedure for making payments under credit cards is determined by the issuing banks. They can vary markedly depending on the individual issuer. So, one at a time credit cards provided a payment loan must be repaid within a month, and for others credit cards payments made within 25 days are not considered a loan at all and no interest is charged for them. One by one credit cards one-time payments can be limited to certain amounts, on others - not, but only by the total limit of the credit line, on the third credit cards even exceeding this limit may be allowed. Competitive struggle between banks for their clients makes them constantly improve credit cards and make them more and more attractive to customers.
Let's consider in more detail the types of credit cards and give them a brief description.
Credit cards can be divided into two groups - bank cards and maps for tourism and entertainment.
Bank cards can be personal or corporate.
Personal card (individual) is issued to individual bank customers (issued on individual) and can be "Standard" (normal), i.e. designed for the mass market, or "Golden" (elite), designed for citizens with high incomes and high credit ratings. Elite (privileged) credit cards are designed for people with high creditworthiness and provide for their owners a lot additional services and benefits.
Corporate credit card issued to employees of a legal entity (firm, organization, etc.) to pay the costs associated with their economic activities and with business trips... Based on the corporate card, the organization can issue individual credit cards chosen persons (managers or valuable employees). They open personal accounts "tied" to the corporate card account... Corporate card account holders are legal entities. Responsibility to the bank for corporate account is borne by the organization and not by the individual corporate cardholders.
Travel and entertainment cards are issued by travel service companies such as American Express and Diners Club. Cards are accepted for servicing by hundreds of thousands of trade and service enterprises around the world to pay for goods and services, and also provide owners with benefits for booking air tickets, hotel rooms, receiving discounts on the price of goods, life insurance, etc.
The main differences of this type of cards from bank credit cards- the absence of a one-time limit on purchases and the obligation of the cardholder to pay off the debt within a month without the right to prolong the loan. In the event of a delay in payment, the cardholder will be charged an increased percentage.
Credit card settlement mechanism
Consider the sequence of operations performed by the subjects of the payment system in the process of providing services and purchasing goods using credit cards:
1. Wanting to make a purchase (or pay for the service received), the holder credit card gives it to the seller.
2. The seller must make sure that the transaction is possible. To do this, he verifies the authenticity credit card and the legality of its disposal by the buyer (visually - the card meets the specifications of the payment system, the appearance of the bearer of the card matches the image in the photo (if present) or using a POS terminal - the terminal reads the number credit card and checks if it is in the stop list) and, if necessary (if the transaction amount does not exceed the limit of the payment system), performs authorization (voice over the phone or through a POS terminal). When making a decision, the acquiring bank is guided by the data received from the service point, as well as information about the cardholder, his limits, the implementation of transactions stored in the database. This information can be located either in the base of the acquiring bank, or the processing center, or the issuing bank. The location of the information depends on the specific organization of data storage in the payment system at the moment. If the limit of the payment system is exceeded, the acquirer mandatory must send the request for authorization to the payment system, which makes the decision.
If in doubt, the seller has the right to demand the presentation of an identity document, and in his absence, refuse to complete the transaction.
3. After making sure that the transaction can be carried out, the seller draws up a check (slip), while transferring the data from the card to it. For manual processing, an imprinter is used for this, where the holder credit card then it is signed (usually three copies of the check) and the seller is obliged to check whether the signature on the slip matches the sample of the signature on the card (the signature on the card is required).
With automatic processing, the check is printed in two copies by the POS terminal, which are signed by the buyer: the 1st is issued to the buyer, and the 2nd check remains with the seller (company).
4. The card, the purchased product and the 1st copy of the receipt are handed over to the buyer.
5. At the end of the day, the service point sends information about the transactions for the day to the acquiring bank (if processed manually, the transfer can be carried out once every several days). In this case, in the case of manual processing, copies of slips are sent, and during automatic processing, the POS terminal transmits the data accumulated during the day through the communication channel.
6. The acquiring bank checks transactions and makes settlements with the service point (makes a recalculation of funds to its current account). Transactions that concern cardholders who are clients of other issuers are transferred to the processing center.
7. The processing center processes the transactions transferred by the acquiring banks and generates reporting data for mutual settlements between banks - participants in the payment system. The total totals are transmitted to the settlement bank of the system, and the individual totals are sent to the participating banks as a message about mutual settlements.
8. Settlement bank conducts mutual settlements between participating banks that have opened correspondent accounts there. Other participating banks make transfers on their own.
9. Holders credit cards return to issuing banks the funds provided to them on credit for the purchase of goods and services.
Credit Card Cash Disbursement Process
Process cash withdrawal by credit card is completely similar to the procedure for paying for goods / services, with the only difference that in this case the points of service are the acquiring banks themselves - their branches and branches, and / or ATMs. In addition, ATMs operate on-line and carry out authorization each time cash is dispensed.
Debit cards are intended to pay for goods and services, receive cash in banks by direct debiting of money from the cardholder's bank account. Debit card cannot be used when paying for a purchase if there is no money on the account.
In the absence or lack of funds for card account when performing operations using a card on a debit scheme, it is possible to provide a short-term loan - overdraft.
Overdraft cards make it possible to make payments in excess of the amount credited to the owner's account debit card (small amount loan without a special loan agreement).
Overdraft conditions are determined upon opening card account and are indicated in the agreement that is concluded between the holder debit card and the issuing bank.
so bank payment card is a personalized payment instrument that allows the cardholder to make non-cash payments for goods or services, as well as receive cash in bank branches and ATMs. Acceptance of the card for payment and the issuance of cash on it is carried out by trade (service) enterprises and banks that are members of the payment system serving the card.
Non-bank (trading) cards are cards issued into circulation legal entities for payments for goods (services) that belong to them on the basis of property rights. For example, calling cards, subway cards, internet cards, etc.
There are several types of bank cards, they differ in the territory of application, in the belonging of funds and in purpose. Let's consider each type of bank cards in detail.
By area of application:
- Local
- International
- Virtual
Local
Local (intrabank) cards are designed to carry out transactions strictly within the system of the issuing bank. It can only be used at ATMs and terminals of your bank. ATMs and terminals of other banks do not service such a card. You can also pay for purchases at retail outlets only if you have a terminal of this bank, which is quite a rare occurrence. This card does not allow making transactions on the Internet, with the exception of transactions on the website of the issuing bank, if it provides such an opportunity.
International
International bank cards are cards of international banking systems. The most popular are Visa and MasterCard systems. Maps of these systems are of several types and differ in their functionality. The most popular of them allow you to make transactions in almost any ATMs and terminals around the world, as well as pay for purchases via the Internet. The vast majority of cards issued by banks are based on these payment systems.
Virtual
Virtual bank cards are cards designed to carry out transactions exclusively over the Internet. In appearance, they almost do not differ from ordinary debit cards, but they do not have a magnetic stripe and a chip, which makes it impossible to use the card in ATMs and terminals. Also, the cardholder does not have the opportunity to receive cash at the cash desk of the bank branch, except for the case of closing the card if there is a positive balance on it. Thus, the virtual card is rather the account details presented in the form of a bank card.
By ownership of funds
- Debit
- With authorized overdraft
- Credit
- Prepaid
Debit
A debit (payment) bank card allows you to make transactions within the funds available on the account. That is, the cardholder can only use his own funds. The bank can set the level of the minimum balance - a certain amount, upon reaching which the client cannot perform operations until the account balance is replenished. Also, in the conditions of the bank, the accrual of interest on the balance of funds may be stipulated. The debit card serves mainly as a replacement paper money, and also allows you to make payments on the Internet. Most of the cards issued in Russia are debit cards.
With authorized overdraft
Bank card with permitted overdraft is an improved debit card, a feature of which is the possibility of exceeding the own funds available on the account. The excess funds are carried out at the expense of a loan, which is automatically opened on the card when the amount of the transaction being performed exceeds the positive balance.
The amount of the overdraft is fixed and is stipulated in the card opening agreement. Overdraft cards are often linked to accounts salary projects, in connection with which the issued loan is repaid automatically when transferring wages... Also, automatic payments can be made on the account, despite the lack of funds, which will also be equated to a loan.
The commission for the loan begins to accrue from the moment the limit of own funds is exceeded until the amount of the required amount is credited to the account, taking into account the commission. Usually, interest rates for overdraft operations is higher than for ordinary loans.
Credit
The credit card is intended for making transactions on borrowed funds... By its properties, a credit card is almost the same as a loan. The main difference is that funds can be used as needed, while interest is charged only on the amount that was actually used.
Credit cards are reusable, that is, after repayment of the amount taken, you can use the credit funds again. At the same time, for the periods when credit funds are not used and there is no debt on the account, no commissions are charged (except for payment of additional services, for example, a mobile bank).
The loan amount is set individually for each client and is determined according to the same principles as when applying for a regular loan.
Another feature of a credit card is that it does not assume a positive balance. That is, even if a "plus" was formed on the card account when depositing funds, it cannot be used for anything other than repaying the loan after using it for following operations... These funds are written off within the loan repayment period established by the agreement.
Interest on credit cards is usually lower than on cards with authorized overdrafts, but higher than on regular loans.
An important difference between a credit card and a regular loan is the presence of the so-called "grace period" - a certain period during which the interest for using credit funds are not charged. The duration of this period differs from bank to bank, but on average is 50-60 days.
It should also be remembered that credit cards it is beneficial to use when paying for purchases directly with a card, since most banks charge interest for withdrawing cash from ATMs, on average 3-5%.
Prepaid
A prepaid bank card is a card on which at the time of purchase there is a certain amount, and settlements are made on behalf of the issuing bank. A prepaid card allows you to make purchases or pay for services in the same way as a regular debit card.
The bank that issued the card may impose restrictions on the use of the card, for example:
short term of validity of the card, after which it will not be possible to use it or replace it;
inability to return funds in case of loss of the card or after the expiration of its validity period;
lack of the ability to cash out;
inability to replenish the card account.
If the amount on the prepaid card does not exceed 15,000 rubles, then the bank does not require customer identification.
Gift bank cards are a type of prepaid bank card.
By appointment
- Personal
- Salary
- Corporate
- Pre-released
Personal
A personal bank card is drawn up by the client independently and is used by him for personal purposes. Due to the fact that the client starts the card on his own initiative, he, as a rule, does it consciously and strives to ensure that the card most fully meets his needs and gives some advantages.
Salary
Salary cards are issued to employees of companies within the framework of salary projects (an agreement between the company and the bank on the transfer of salary to cards). Terms of Use salary cards are usually more beneficial than using personal ones. In addition, for holders of salary cards, banks usually greatly simplify the process of applying for a loan, and credit conditions can be preferential.
Depending on the specific organization, you may need to return the card after your employment with the company or continue to use it until the expiration date.
Corporate
Corporate cards are issued for the purpose of making prompt purchases and paying for services by company employees in its interests, for example, paying for restaurants, gas stations, car washes, etc. Cash the cards on the account belong to the company and are taken into account in the calculation of own funds. In this regard, all operations carried out on the card must be confirmed by checks and other documents confirming the intended use of funds.
Pre-released
A pre-issued bank card is a card that is issued even before the client writes an application for a card. Such a card does not initially contain information about its owner, it does not indicate the full name. The card is attached to the account, which is opened for a specific client. Such a card makes it possible to perform all the same operations as a regular debit card, including using an online bank, and receiving interest on the balance of funds. However, for security reasons, it is not recommended to use such cards as main ones and store large amounts on them, since payment on them does not require the presentation of documents. In addition, cards may not be accepted for hotel reservations, car rentals, and payment at some online stores.
Pre-issued cards are very convenient when you urgently need to issue a card, because in this case the procedure will take several minutes. They are also often used by banks to pay interest or to replenish a credit account.
A bank card is the most convenient, practical and reliable payment instrument that has become an integral part of the life of a modern person. It not only gives many users access to their bank account, but also gives many opportunities in the form of discounts, bonuses and other privileges. Consider what a bank card is, what types of them exist.
Description
A bank card is a personal payment instrument that gives its owner access to his bank account, debit or credit. With its help, you can make non-cash payments for goods and services, including on the Internet, withdraw cash at the cash desks of banks or ATMs.
Bank cards appeared in human life not so long ago, only 60 years ago, today they are used all over the world and are gradually replacing cash. By the way, before the advent of "plastic", the system of non-cash payments existed in the form of checkbooks, which has now become history completely.
A number of requirements are imposed on a plastic product of any issuing bank, first of all, the size according to the ISO 7810 ID-1 standard, namely, width - 86 mm, length - 54 mm, thickness up to 1 mm, corner radius - 3.18 mm.
Advantages
Compared to cash, cards provide their holder with a number of advantages:
- your money is reliably protected, because the funds are stored in a bank account, if you lose "plastic", then access to the account can be blocked, that is, the money is not on the card, but in the bank, which can be more reliable;
- convenient use, that is, when paying for goods and services, neither the cashier nor the buyer can make mistakes in calculations, for example, give change incorrectly;
- the advantage abroad is that the money stored on the card does not need to be declared, which cannot be said about cash;
- income on debit accounts, most financial and credit organizations offer such a service as cash back, that is, this is money that is returned to the account from each purchase;
- finally, it is much easier for plastic owners to control their expenses, and therefore to regulate the family budget, at any time the client can request an extract of the report, completely free of charge.
Varieties of plastic
A payment card is just a tool or a key to a bank account for your own or bank account. In the first case, the card is debit, that is, the user spends only his own funds, in the second, the card holder uses credit.
All bank cards are divided into several types according to the type of payment:
- debit - from own funds on the account;
- credit card - settlements on it are carried out at the expense of a loan, the limit of which is set by the bank;
- prepaid is "plastic", with fixed amount on the account, unlike all other products, it is not issued, but is bought from the issuer;
- overdraft - this product with a permitted overspending on the client's account.
Not so long ago, banks began to offer customers completely the new product is a virtual card, unlike real "plastic" it does not have a physical medium. This product is useful for those who make purchases through online stores. The bank issues only the details to the client.
Bank card appearance
Appearance
So, what the card looks like, its design and the main elements on the front side:
- surname and first name of the holder in Latin characters;
- a 12-digit number, but there can be 18 or 19, depending on the issuing bank;
- the logo of the payment system that serves it, for example, Visa or MasterCard;
- microchip for additional protection;
- the logo of the issuing bank;
- "plastic" status, for example, standard, gold or platinum;
- expiration date, month and year.
On the back side:
- the logo of the issuing bank;
- magnetic stripe;
- owner's signature;
- CVV2 / CVC2 code for additional protection of settlement transactions on Internet resources.
Perhaps not everyone knows, but the issue of plastic bank cards is regulated by the Regulation of the Central Bank of the Russian Federation "On the issue of bank cards and on transactions performed using payment cards."
How is the calculation done: mechanism
We all quite often use bank payment cards to pay for goods or services, but not everyone knows exactly how the settlement mechanism takes place between the issuing bank and the seller.
Consider this diagram:
- In case of non-cash payment, the buyer gives his card to the seller.
- Further, the seller must verify its authenticity and visually determine whether it is counterfeit, only after that the plastic passes through the terminal by means of a magnetic tape or microchip. The terminal reads the information by number and sends it to the acquiring bank (this is the organization that owns this device). The automatic system processes information about the cardholder, account limits and makes a decision to carry out the operation or refuse.
- In case of a positive decision, the acquiring bank accepts the payment and debits the funds from the account. The card and the check are returned to the owner, the second copy of which remains with the seller.
- Next, the seller sends a report on cashless transactions to the acquiring bank, and he, in turn, transfers money to the organization's current account in the amount of non-cash transactions carried out per day.
- After that, the bank transfers the data to the processing center (a subdivision that provides information interaction between settlement participants, that is, banks). It processes information on transactions and sends it to banks for mutual settlements.
- The issuing bank pays with the acquiring bank independently.
The process of issuing cash through self-service devices - ATMs looks similar.
How is the settlement with a bank card: scheme
In general, what is payment card? This is a means of non-cash payment, which allows its owner to make any settlement transactions without raising cash. At the moment, the most in demand are credit cards, that is, cards with credit limit... They are primarily a spare wallet for their owner, and also allow you to use borrowed funds during a grace period without interest.