Cards are categorized based on how they’re issued, used, and paid for. Bank cards offering a convenient and simple way to handle cash withdrawals, purchases, and payments. Here’s a simple guide to the different types of cards:
1. Debit Cards
- What They Are: Debit cards give you electronic access to your bank account. They are issued by banks and directly linked to your account.
- Uses:
- Withdraw cash from ATMs.
- Buy goods and services at stores or online, both locally and internationally (if the card is enabled for international use).
- Types:
- Online Debit Cards: Transactions are authorized electronically and are secured with a PIN. Changes show up in your account right away.
- Offline Debit Cards: These have a daily spending limit and transactions may take a few days to appear in your account.
2. Credit Cards
- What They Are: Credit cards allow you to borrow money from the bank to pay for goods and services. They are issued by banks and other approved entities.
- Uses:
- Purchase goods and services.
- Make online transactions and recurring payments.
- Withdraw cash from ATMs and transfer funds.
- Key Terms:
- Credit Limit: The maximum amount you can borrow.
- Balance: Total amount you owe.
- APR (Annual Percentage Rate): Interest charged on unpaid balances.
- Grace Period: Time allowed to pay off your balance without interest.
3. Prepaid Cards
- What They Are: Prepaid cards are loaded with money in advance and are not linked to a bank account. They can be used like debit or credit cards.
- Uses:
- Withdraw cash from ATMs.
- Buy goods and services, both in stores and online.
- Transfer funds domestically.
Other Types of Cards
Smart Cards
- What They Are: These cards have an embedded chip that stores cash. Payments are made by deducting the exact amount from the card.
Co-Branded Cards
- What They Are: Credit cards offered by banks in partnership with retailers, often with special benefits like discounts.
RuPay Cards
- What They Are: Indian payment cards similar to international ones like Visa and MasterCard, launched by the National Payment Corporation of India (NPCI).
- Benefits:
- Lower transaction costs.
- Transaction alerts.
- Reduced processing fees.
Kisan Credit Cards
- What They Are: Designed for farmers to provide timely credit for agricultural expenses and contingencies.
- Types:
- Cash Credit: Short-term credit for daily needs.
- Term Credit: Long-term credit for larger expenses.
How to Use Cards
- Magnetic Stripe Cards: Swiped at the point of sale (POS) terminal.
- Chip & PIN Cards: Inserted into the POS terminal and require a PIN.
- Contactless NFC Cards: Tapped near the reader for quick transactions.
Additional Information
- Card Present (CP) Transactions: Made when the card is physically present, like at a store or ATM.
- Card Not Present (CNP) Transactions: Made online or over the phone without the card physically being present.
Card Details
- Bank Name: Issuer of the card.
- Card Number: Usually 16 digits.
- Cardholder's Name: The person the card is issued to.
- Smart Chip: Provides extra security to prevent cloning.
- Expiration Date: Indicates until when the card is valid.
- Payment Network Logo: Identifies the payment network (e.g., Visa, MasterCard, RuPay).
RuPay: An Indian domestic payment system that supports local electronic payments, free from foreign payment fees.
