A Bank Card is
typically a plastic card issued by a bank to its clients that performs one or
more of a number of services that relate to giving the client access to funds,
either from the client's own bank account, or through a credit account.
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
Debit
cards
Debit cards are issued by banks and are linked to
a bank account.
The debit cards are used to withdraw cash from an
ATM, purchase of goods and services at Point of Sale (POS)/E-commerce (online
purchase) both domestically and internationally (provided it is enabled for
international use). However, it can be used only for domestic fund transfer
from one person to another.
Credit
Cards
Credit cards are issued by banks / other entities
approved by RBI. The credit limits sanctioned to a card holder is in the form
of a revolving line of credit (similar to a loan sanctioned by the issuer) and
may or may not be linked to a bank account.
The credit cards are used for purchase of goods
and services at Point of Sale (POS) and E-commerce (online purchase)/ through
Interactive Voice Response (IVR)/Recurring transactions/ Mail Order Telephone
Order (MOTO). These cards can be used domestically and internationally
(provided it is enabled for international use). The credit cards can be used to
withdraw cash from an ATM and for transferring funds to bank accounts, debit
cards, credit cards and prepaid cards within the country.
Prepaid
Cards
Prepaid cards are issued by the banks / non-banks
against the value paid in advance by the cardholder and stored in such cards
which can be issued as smart cards or chip cards, magnetic stripe cards,
internet accounts, internet wallets, mobile accounts, mobile wallets, paper
vouchers, etc.
The usage of prepaid cards depends on who has
issued these cards. The prepaid cards issued by the banks can be used to
withdraw cash from an ATM, purchase of goods and services at Point of Sale
(POS)/E-commerce (online purchase) and for domestic fund transfer from one
person to another. Such prepaid cards are known as open system prepaid cards.
However, the prepaid cards issued by authorised non-bank entities can be used
only for purchase of goods and services at Point of Sale (POS)/E-commerce
(online purchase) and for domestic fund transfer from one person to another.
Such prepaid cards are known as semi-closed system prepaid cards. These cards
can be used only domestically.
The maximum value that can be stored in any
prepaid card (issued by banks and authorised non-bank entities) at any point of
time is Rs 1,00,000/-.
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