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8/29/2015 1 DEBIT CARD, CREDIT CARD & SMART CARD

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8/29/2015 2 INTRODUCTION A few years ago it was easy to tell the difference between a credit card and a debit card. A few years ago it was easy to tell the difference between a credit card and a debit card. You used your debit card at the ATM with a personal identification number, and you used your credit card for purchases. You used your debit card at the ATM with a personal identification number, and you used your credit card for purchases. 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. 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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8/29/2015 3 DEBIT CARD A Debit card is a plastic card which provides a alternative payment method to cash when making purchases. A Debit card is a plastic card which provides a 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 Functionally, it can be called an electronic check, as the funds are withdrawn directly from either the bank account, or from the remaining balance on the card. Functionally, it can be called an electronic check, as the funds are withdrawn directly from either the bank account, or from the remaining balance on the card.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. It is also known as BANK CARD or CHECK CARD.

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8/29/2015 4 Debit cards can also 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 cards can also 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.

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8/29/2015 5 i4 MAESTRO DEBIT CARD First Debit Gold card

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8/29/2015 6 Debit Card Uses Debit Card Uses It is used instead of a check to make purchases, anywhere Visa is accepted 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 It is used instead of a credit card to pay bills such as utilities, insurance and car payments

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8/29/2015 7 Advantages of a debit card 1. A consumer who is not credit worthy and may find it difficult or impossible to obtain a credit card can more easily obtain a debit card. 2. Use of a debit card is limited to the existing funds in the account to which it is linked. 3. For most transactions, a check card can be used to avoid check writing altogether.

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8/29/2015 8 Disadvantages of a debit card Some banks are now charging over-limit fees or non-sufficient funds fees based upon pre- authorizations. Some banks are now charging over-limit fees or non-sufficient funds fees based upon pre- authorizations. In some countries debit cards offer lower levels of security protection than credit cards. In some countries debit cards offer lower levels of security protection than credit cards.

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8/29/2015 9 CREDIT CARD

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A CREDIT CARD 8/29/2015 10

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8/29/2015 11 CREDIT CARD Credit cards are similar to debit cards. They give you access to funds in your credit account. Credit cards are similar to debit cards. They give you access to funds in your credit account. Your card is swiped through a special machine in a store. In this way the magnetic strip on the back of the card, which holds information, can be read. Your card is swiped through a special machine in a store. In this way the magnetic strip on the back of the card, which holds information, can be read. A credit card is part of a system of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services. A credit card is part of a system of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services.

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Debit Card Uses It is used instead of a check or cash to make purchases, anywhere Visa is accepted It is used instead of a check or cash 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 It is used instead of a credit card to pay bills such as utilities, insurance and car payments It can be used as a card to withdraw money from an ATM, as longs as you have a credit balance. It can be used as a card to withdraw money from an ATM, as longs as you have a credit balance. 8/29/2015 12

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Smart Card These cards have a microprocessor (instead of a magnetic strip) embedded in them. These cards have a microprocessor (instead of a magnetic strip) embedded in them. Smart cards are similar to a debit or credit card BUT hold more information and are more secure. Smart cards are similar to a debit or credit card BUT hold more information and are more secure. Smart cards are used to pay for goods and services just like debit and credit card. Smart cards are used to pay for goods and services just like debit and credit card. 8/29/2015 13

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A SMART CART 8/29/2015 14