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DEBIT CARD&
CREDIT CARD
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NAME ROLL NO.
DOMINIC GOUVEIA 10B718
ABHISHEK GUPTA 10B720
NISHA GUPTA 10B721
HARISH JAIN 10B722
DARSHAN IYER 10B761
2
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TABLE OF CONTENTSSR.
NO.
TOPIC PAGE NO.
1 INTRODUCTION
2 HISTORY & ESTABLISHMENT
3 DEBIT CARDSTYPES ,BENEFITS , ADV. &DISADVANTAGES
4 CREDIT CARDSTYPES , BENEFITS , WORKING
PROCESS & DOS AND DONTS
5
6
CREDIT CARDS Vs DEBIT CARDS
CONCLUSION
3
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INTRODUCTION
A few years ago it was easy to tell the differencebetween a credit card and a debit card.
You used your debit card at the ATM with a
personal identification number, and you usedyour credit card for purchases.
But today both types of cards carry familiar
credit company logos, both can be swiped at thecheckout counter and both can be used to makeonline purchases.
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THEN
A few years ago it was easy to tell the differencebetween a credit card and a debit card.
You used your debit card at the ATM with a
personal identification number, and you usedyour credit card for purchases.
5
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NOW
But today both types of cards carry familiar
credit company logos, both can be swiped at the
checkout counter and both can be used to make
online purchases
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This highly competitive market has
resulted in impressive card growth
Source: FRB Data
Volume Growth of Payment Streams 2002-2006 (CAGR)
-20%
0%
20%
40%
60%
80%
100%
120%
140%
Debit
CardsCheques
Cash
High takeup of cards
Credit
Cards
Cash is thelargest volume
129%
-11%
+11%
+20%
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DEBIT CARD
plastic card alternative payment method to cash when
making purchases.
electronic check - funds are withdrawn directlyfrom either the bank account, or from the
remaining balance on the card.
It is also known as BANK CARD or CHECKCARD.
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It is used instead of a check to make purchases,
anywhere Visa is accepted It is used instead of a credit card to pay bills
such as utilities, insurance and car payments
Point-of-sale funds are drawn from primarychecking account
PIN-system security
Change your PIN at any Merchants Bank branch
No annual fee
Choose from three card designs
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i4 MAESTRO DEBIT CARD
First Debit Gold card
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TYPES OF DEBIT CARD
1. ONLINE DEBIT CARD
2. OFFLINE DEBIT CARD
3. PREPAID DEBIT CARD
4. ELECTRONIC PURSE CARD
5. CARDS FOR MAIL, TELEPHONE &INTERNET USE ONLY
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ADVANTAGES
ANDDISADVANTAGES
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ADVANTAGES1. A consumer who is not credit worthy and may
find it difficult or impossible to obtain a creditcard can more easily obtain a debit card.
2. Use of a debit card is limited to the existingfunds in the account to which it is linked.
3. For most transactions, a check card can beused to avoid check writing altogether.
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DISADVANTAGES
Some banks are now charging over-limit fees ornon-sufficient funds fees based upon pre-authorizations.
Many merchants mistakenly believe thatamounts owed can be "taken" from a customer'saccount after a debit card (or number) has beenpresented.
In some countries debit cards offer lower levelsof security protection than credit cards.
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CREDIT
CARD
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CREDIT CARD
A credit card is part of a system of paymentsnamed after the small plastic card issued to usersof the system.
It is a card entitling its holder to buy goods andservices based on the holder's promise to pay forthese goods and services.
The issuer of the card grants a line of credit tothe consumer (or the user) from which the usercan borrow money for payment to a merchantor as a cash advance to the user.
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BENEFITS TO CUSTOMER
Due to intense competition in credit cardindustry, credit card providers offer incentives
such as
FREQUENT FLYER POINTS
GIFT CERTIFICATES
CASH BACK(1% based on total purchase)
LOW INTEREST CREDIT CARDS
EVEN 0% INTEREST CREDIT CARDS ARE
AVAILABLE
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GRACE PERIOD
A credit card's grace period is the time the
customer has to pay the balance before interest
is charged to the balance.
Grace periods vary, but usually range from 20 to
40 days depending on the type of credit card and
the issuing bank.
If a customer is late paying the balance, finance
charges will be calculated and the grace period
does not apply.
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TYPES OF CREDIT
CARDS
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CREDIT CARDS FOR BAD CREDITS1. SECURED CREDIT CARDS
A secured credit card is a type of credit card
secured by a deposit account owned by thecardholder.
Typically, the cardholder must deposit between100% and 200% of the total amount of creditdesired.
Thus if the cardholder puts down $1000, theywill be given credit in the range of $500$1000.
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2. PREPAID CREDIT CARDS
Aprepaid credit card is not a credit card, sinceno credit is offered by the card issuer: the card-holder spends money which has been "stored"
via a prior deposit by the card-holder orsomeone else, such as a parent or employer.
Prepaid cards can be issued to minors (above13) since there is no credit line involved.
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STANDARD CREDIT CARDS
1. BALANCE TRANSFER CREDIT CARDS
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2. LOW INTEREST CREDIT
CARDS
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Credit Card DosUse a debit card vs a credit card
Use a card with no annual fee and low interest rates
Know all of your cards hidden fees
Always pay more than the minimum each month
Pay on time, all the time
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WHICH CARD DO YOU WANT IN
YOUR WALLET??
Current data suggests that debit cards are more
popular with consumers than credit cards.
A recent TNS Financial Services Consumer
Credit Card Program Study indicated that over
60 percent of consumers prefer using debit cardsto credit cards as a payment vehicle, because
debit feels more like "real money."
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Credit Card DontsDont get more than one
Dont use them for cash advances
Dont use them to pay for basics: rent, groceries, etc.
Dont charge more than you can pay off in a month
Dont let banks increase you credit limit
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