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DEBIT CARDDEBIT CARD&&

CREDIT CARDCREDIT CARD

PRESENTED BYPRESENTED BY:-:-

Ravi KumarRavi Kumar

GuptaGupta

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INTRODUCTIONINTRODUCTION

A few years ago it was easy to tell theA few years ago it was easy to tell thedifference between a credit card and a debitdifference between a credit card and a debitcard.card.

You used your debit card at the ATM with a You used your debit card at the ATM with apersonal identification number, and you usedpersonal identification number, and you usedyour credit card for purchases.your credit card for purchases.

But today both types of cards carry familiarBut today both types of cards carry familiarcredit company logos, both can be swiped atcredit company logos, both can be swiped at

the checkout counter and both can be used tothe checkout counter and both can be used tomake online purchases.make online purchases.

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DEBIT CARDDEBIT CARD

Debit card is a plastic card which provides aDebit card is a plastic card which provides aalternative payment method to cash whenalternative payment method to cash when

making purchases.making purchases.

Functionally, it can be called an electronicFunctionally, it can be called an electronic

check, as the funds are withdrawn directlycheck, as the funds are withdrawn directlyfrom either the bank account, or from thefrom either the bank account, or from the

remaining balance on the card.remaining balance on the card.

It is also known as BANK CARD or CHECKIt is also known as BANK CARD or CHECK

CARD.CARD.

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Debit cards can also allow for instantDebit cards can also allow for instant

withdrawal of cash, acting as thewithdrawal of cash, acting as the

ATM card for withdrawing cash andATM card for withdrawing cash and

as a cheque guarantee card.as a cheque guarantee card.

Merchants can also offerMerchants can also offer

"cashback"/"cashout" facilities to"cashback"/"cashout" facilities to

customers, where a customer cancustomers, where a customer canwithdraw cash along with theirwithdraw cash along with their

purchase.purchase.

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i4 MAESTRO DEBIT

CARD

First Debit Gold

card

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Debit CardDebit Card

It is used instead of a check to makeIt is used instead of a check to makepurchases, anywhere Visa is acceptedpurchases, anywhere Visa is accepted

It is used instead of a credit card to payIt is used instead of a credit card to paybills such as utilities, insurance and carbills such as utilities, insurance and car

paymentspayments Point-of-sale funds are drawn fromPoint-of-sale funds are drawn from

primary checking accountprimary checking account

PIN-system securityPIN-system security Change your PIN at any Merchants BankChange your PIN at any Merchants Bank

branchbranch No annual feeNo annual fee Choose from three card designsChoose from three card designs

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TYPES OF DEBIT CARDTYPES OF DEBIT CARD

1.1. ONLINE DEBIT CARDONLINE DEBIT CARD

2.2. OFFLINE DEBIT CARDOFFLINE DEBIT CARD

3.3. PREPAID DEBIT CARDPREPAID DEBIT CARD

4.4. ELECTRONIC PURSE CARDELECTRONIC PURSE CARD

5.5. CARDS FOR MAIL, TELEPHONE &CARDS FOR MAIL, TELEPHONE &INTERNET USE ONLYINTERNET USE ONLY

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1.1. ONLINE DEBIT CARDONLINE DEBIT CARD

Online debit cards require electronicOnline debit cards require electronicauthorization of every transaction.authorization of every transaction.

The debits are reflected in the users account The debits are reflected in the users accountimmediately.immediately.

The transaction may be additionally secured The transaction may be additionally securedwith the personal identification number (PIN)with the personal identification number (PIN)authentication system and some online cardsauthentication system and some online cardsrequire such authentication for everyrequire such authentication for every

transaction, essentially becoming enhancedtransaction, essentially becoming enhancedautomatic teller machine (ATM) cards.automatic teller machine (ATM) cards.

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One difficulty in using online debit cards is theOne difficulty in using online debit cards is the

necessity of an electronic authorization devicenecessity of an electronic authorization device

at the point of sale (POS) and sometimes also aat the point of sale (POS) and sometimes also a

separate PIN pad to enter the PIN, althoughseparate PIN pad to enter the PIN, althoughthis is becoming common place for all cardthis is becoming common place for all card

transactions in many countries.transactions in many countries.

Banks in some countries, such as Canada andBanks in some countries, such as Canada and

Brazil, only issue online debit cards.Brazil, only issue online debit cards.

In the United Kingdom, Solo and Visa ElectronIn the United Kingdom, Solo and Visa Electron

are examples of online debit cards, which areare examples of online debit cards, which are

typically issued by banks to customers whomtypically issued by banks to customers whom

the bank does not want to go overdrawn underthe bank does not want to go overdrawn under

any circumstances, for example under-18s.any circumstances, for example under-18s.

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2.2. OFFLINE DEBITOFFLINE DEBIT

CARDCARD Offline debit cards have the logos of majorOffline debit cards have the logos of major

credit cards or major debit cards and are usedcredit cards or major debit cards and are usedat the point of sale like a credit card.at the point of sale like a credit card.

This type of debit card may be subject to a This type of debit card may be subject to a

daily limit, and/or a maximum limit equal todaily limit, and/or a maximum limit equal tothe current/checking account balance fromthe current/checking account balance fromwhich it draws funds. Transactions conductedwhich it draws funds. Transactions conductedwith offline debit cards require 23 days to bewith offline debit cards require 23 days to be

reflected on users account balances.reflected on users account balances. In the United Kingdom, Maestro (formerlyIn the United Kingdom, Maestro (formerly

Switch) and Visa Debit (formerly Delta) areSwitch) and Visa Debit (formerly Delta) areexamples of offline debit cards.examples of offline debit cards.

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3.3. PREPAID DEBITPREPAID DEBIT

CARDCARD Prepaid debit cards, also called reloadablePrepaid debit cards, also called reloadable

debit cards or reloadable prepaid cards, aredebit cards or reloadable prepaid cards, are

often used for recurring payments.often used for recurring payments.

The payer loads funds to the cardholder's cardThe payer loads funds to the cardholder's cardaccount.account.

Particularly for US-based companies with aParticularly for US-based companies with a

large number of payment recipients abroad,large number of payment recipients abroad,

prepaid debit cards allow the delivery ofprepaid debit cards allow the delivery ofinternational payments without the delays andinternational payments without the delays and

fees associated with international checks andfees associated with international checks and

bank transfers.bank transfers.

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4.4. ELECTRONIC PURSEELECTRONIC PURSE

CARDCARD Smart-card-based electronic purseSmart-card-based electronic purse

systems (in which value is stored onsystems (in which value is stored on

the card chip, not in an externallythe card chip, not in an externally

recorded account, so that machinesrecorded account, so that machinesaccepting the card need no networkaccepting the card need no network

connectivity) were tried throughoutconnectivity) were tried throughout

Europe from the mid-1990s, mostEurope from the mid-1990s, mostnotably in Germany.notably in Germany.

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5.5. CARDS FOR MAIL,CARDS FOR MAIL,

TELEPHONE ANDTELEPHONE AND

INTERNET USE ONLYINTERNET USE ONLY Special pre-paid Visa cards for MailSpecial pre-paid Visa cards for Mail

Order/Telephone Order (MOTO) and Internet useOrder/Telephone Order (MOTO) and Internet useonly are made available by a small number ofonly are made available by a small number of

banks. They are sometimes called "virtual Visabanks. They are sometimes called "virtual Visacards", although they usually do exist in the formcards", although they usually do exist in the formof plastic. An example is 3V.of plastic. An example is 3V.

Such a card prevents fraud by a card numberSuch a card prevents fraud by a card numberthief even if the card is not blocked, because thethief even if the card is not blocked, because the

customer normally does not store any money oncustomer normally does not store any money onthe sub-account and fraudulent transactions dothe sub-account and fraudulent transactions donot get authorized by the banknot get authorized by the bank

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ADVANTAGESADVANTAGES

ANDANDDISADVANTAGESDISADVANTAGES

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ADVANTAGESADVANTAGES1.1. A consumer who is not credit worthy andA consumer who is not credit worthy andmay find it difficult or impossible to obtain amay find it difficult or impossible to obtain a

credit card can more easily obtain a debitcredit card can more easily obtain a debitcard.card.

2.2. Use of a debit card is limited to the existingUse of a debit card is limited to the existingfunds in the account to which it is linked.funds in the account to which it is linked.

3.3. For most transactions, a check card can beFor most transactions, a check card can beused to avoid check writing altogether.used to avoid check writing altogether.

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CONTD.CONTD.

4.4. Like credit cards, debit cards areLike credit cards, debit cards areaccepted by merchants with lessaccepted by merchants with lessidentification.identification.

5.5. Unlike a credit card, which chargesUnlike a credit card, which chargeshigher fees and interest rates when ahigher fees and interest rates when acash advance is obtained, a debit cardcash advance is obtained, a debit card

may be used to obtain cash from an ATMmay be used to obtain cash from an ATMor a PIN-based transaction at no extraor a PIN-based transaction at no extracharge, other than a foreign ATM fee.charge, other than a foreign ATM fee.

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DISADVANTAGESDISADVANTAGES Some banks are now charging over-limitSome banks are now charging over-limit

fees or non-sufficient funds fees basedfees or non-sufficient funds fees basedupon pre-authorizations.upon pre-authorizations.

Many merchants mistakenly believe thatMany merchants mistakenly believe thatamounts owed can be "taken" from aamounts owed can be "taken" from acustomer's account after a debit card (orcustomer's account after a debit card (ornumber) has been presented.number) has been presented.

In some countries debit cards offer lowerIn some countries debit cards offer lowerlevels of security protection than creditlevels of security protection than creditcards.cards.

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The Three Party ModelThe Three Party Model

CardholderCardholder MerchantMerchant

ProcessorProcessor

Issuer / AcquirerIssuer / Acquirer

Card Payment Facility

Merch

ants

ervi

cecha

nge

Auth

orisa

tiona

nd

settle

mentse

rvice

sConven

ience&

paym

ent

instru

men

t&cr

editrisk,

whereapp

licable

Cardand

transac

tionfe

es

Purchase goods / services

using card paymentinstrument

Carriage Fee

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The Four Party ModelThe Four Party Model

(Debit Card)(Debit Card)CardholderCardholder MerchantMerchant

IssuerIssuer AcquirerAcquirer

Transact i

on

Fees

Convenie

nce

&payment

instrume

nt

Card Payment Facility

Purchase goods / services

using card payment

instrument

Settleme

nt&

Payment

Services

Merchan

t

ServiceC

harg

e

Settlement & Risk

Bearing

Interchange Fee

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This highly competitive market hasThis highly competitive market has

resulted in impressive card growthresulted 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 take

up of cards

Credit

Cards

Cash is thelargest volume

129%

-11%

+11%

+20%

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CREDIT

CARD

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CREDIT CARDCREDIT CARD

AA credit cardcredit card is part of a system of paymentsis part of a system of paymentsnamed after the small plastic card issued tonamed after the small plastic card issued tousers of the system.users of the system.

It is a card entitling its holder to buy goodsIt is a card entitling its holder to buy goods

and services based on the holder's promise toand services based on the holder's promise topay for these goods and services.pay for these goods and services.

The issuer of the card grants a line of credit toThe issuer of the card grants a line of credit tothe consumer (or the user) from which thethe consumer (or the user) from which the

user can borrow money for payment to auser can borrow money for payment to amerchant or as a cash advance to the user.merchant or as a cash advance to the user.

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CONTD..CONTD..

A credit card is different from a charge card,A credit card is different from a charge card,

where a charge card requires the balance to bewhere a charge card requires the balance to be

paid in full each month.paid in full each month.

In contrast, credit cards allow the consumers toIn contrast, credit cards allow the consumers to

'revolve' their balance, at the cost of having'revolve' their balance, at the cost of having

interest charged.interest charged.

Most credit cards are issued by local banks orMost credit cards are issued by local banks or

credit unions, and are the shape and sizecredit unions, and are the shape and size

specified by the ISO 7810 standard.specified by the ISO 7810 standard.

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WORKING PROCESSWORKING PROCESS

When a purchase is made, the credit card userWhen a purchase is made, the credit card user

agrees to pay the card issuer.agrees to pay the card issuer.

The cardholder indicates his/her consent to payThe cardholder indicates his/her consent to pay

by signing a receipt with a record of the cardby signing a receipt with a record of the card

details and indicating the amount to be paid ordetails and indicating the amount to be paid or

by entering a Personal identification numberby entering a Personal identification number

(PIN).(PIN).

Also, many merchants now accept verbalAlso, many merchants now accept verbal

authorizations via telephone and electronicauthorizations via telephone and electronic

authorization using the Internet, known as aauthorization using the Internet, known as a

'Card/Cardholder Not Present' (CNP) transaction.'Card/Cardholder Not Present' (CNP) transaction.

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CONTD..CONTD..

Electronic verification systems allow merchantsElectronic verification systems allow merchantsto verify that the card is valid.to verify that the card is valid.

The verification is performed using a credit cardThe verification is performed using a credit cardpayment terminal or Point of Sale (POS) systempayment terminal or Point of Sale (POS) systemwith a communications link to the merchant'swith a communications link to the merchant's

acquiring bank.acquiring bank. Card is obtained from a magnetic stripe or chipCard is obtained from a magnetic stripe or chip

on the card, but is more technically an EMV cardon the card, but is more technically an EMV card(Europay, MasterCard and VISA). i.e. VSDC (Europay, MasterCard and VISA). i.e. VSDC

VISA, Mchip mastercard, AEIPS AmericanVISA, Mchip mastercard, AEIPS AmericanExpress, J Smart - JCBExpress, J Smart - JCB

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INTEREST CHARGESINTEREST CHARGES

Credit card issuers usually waive interestCredit card issuers usually waive interestcharges if the balance is paid in full eachcharges if the balance is paid in full eachmonth, but typically will charge full interest onmonth, but typically will charge full interest onthe entire outstanding balance from the date ofthe entire outstanding balance from the date ofeach purchase if the total balance is not paid.each purchase if the total balance is not paid.

EX:- If a user had a $1,000 transaction andEX:- If a user had a $1,000 transaction andrepaid it in full within this grace period, thererepaid it in full within this grace period, therewould be no interest charged.would be no interest charged.

FORMULAE - APR/100 * ADB/365 * number ofFORMULAE - APR/100 * ADB/365 * number of

days revolved. (Annual %age rate, avg dailydays revolved. (Annual %age rate, avg dailybal)bal)

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BENEFITS TO CUSTOMERBENEFITS TO CUSTOMER

Due to intense competition in creditDue to intense competition in creditcard industry, credit card providerscard industry, credit card providers

offer incentives such asoffer incentives such as

FREQUENT FLYER POINTSFREQUENT FLYER POINTS GIFT CERTIFICATESGIFT CERTIFICATES

CASH BACK(1% based on totalCASH BACK(1% based on total

purchase)purchase) LOW INTEREST CREDIT CARDSLOW INTEREST CREDIT CARDS

EVEN 0% INTEREST CREDIT CARDS AREEVEN 0% INTEREST CREDIT CARDS ARE

AVAILABLEAVAILABLE

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GRACE PERIODGRACE PERIOD

A credit card's grace period is the time theA credit card's grace period is the time the

customer has to pay the balance before interestcustomer has to pay the balance before interest

is charged to the balance.is charged to the balance.

Grace periods vary, but usually range from 20 toGrace periods vary, but usually range from 20 to

40 days depending on the type of credit card and40 days depending on the type of credit card and

the issuing bank.the issuing bank.

If a customer is late paying the balance, financeIf a customer is late paying the balance, finance

charges will be calculated and the grace periodcharges will be calculated and the grace period

does not apply.does not apply.

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BENEFITS TOBENEFITS TO

MERCHANTSMERCHANTS A credit card transaction is often moreA credit card transaction is often more

secure than other forms of payment, suchsecure than other forms of payment, suchas checks, because the issuing bankas checks, because the issuing bankcommits to pay the merchant thecommits to pay the merchant themoment the transaction is authorized,moment the transaction is authorized,regardless of whether the consumerregardless of whether the consumerdefaults on the credit card payment.defaults on the credit card payment.

More secure than cash, because theyMore secure than cash, because theydiscourage theft by the merchant'sdiscourage theft by the merchant's

employees and reduce the amount ofemployees and reduce the amount ofcash on the premises.cash on the premises.

Prior to credit cards, each merchant hadPrior to credit cards, each merchant hadto evaluate each customer's creditto evaluate each customer's credit

history before extending credit.history before extending credit.

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COSTS TO MERCHANTSCOSTS TO MERCHANTS

Merchants are charged many fees for theMerchants are charged many fees for the

privilege of accepting credit cards.privilege of accepting credit cards.

The merchant may be charged a discountThe merchant may be charged a discount

rate of 1% - 3%rate of 1% - 3% ++ of each transactionof each transactionobtained through a credit card.obtained through a credit card.

Usually, the merchant will also pay a flatUsually, the merchant will also pay a flat

per-item charge of $0.05 - $0.50 for eachper-item charge of $0.05 - $0.50 for each

transaction.transaction.

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PARTIES INVOLVEDPARTIES INVOLVED

CARDHOLDERCARDHOLDER: Used to make a purchase.: Used to make a purchase.

CARD ISSUING BANKCARD ISSUING BANK: The financial institution: The financial institutionor other organization that issues the card toor other organization that issues the card tothe cardholder.the cardholder.

MERCHANTMERCHANT: The individual or business: The individual or businessaccepting credit card payments for productsaccepting credit card payments for productsor services sold to the cardholder.or services sold to the cardholder.

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CONTDCONTD ACQUIRING BANKACQUIRING BANK: The financial institution: The financial institution

accepting payment for the products oraccepting payment for the products orservices on behalf of the merchant.services on behalf of the merchant.

INDEPENDENT SALES ORGANISATIONINDEPENDENT SALES ORGANISATION::

Resellers (to merchants) of the services ofResellers (to merchants) of the services of

the acquiring bank.the acquiring bank.

MERCHANT ACCOUNTMERCHANT ACCOUNT: Organization that the: Organization that themerchant deals with.merchant deals with.

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CONTDCONTD CREDIT CARD ASSOCIATIONCREDIT CARD ASSOCIATION: An association of: An association of

card-issuing banks such as Visa, MasterCard,card-issuing banks such as Visa, MasterCard,Discover, American Express, etc.Discover, American Express, etc.

TRANSACTION NETWORK TRANSACTION NETWORK: The system that: The system thatimplements the mechanics of the electronicimplements the mechanics of the electronictransactions.transactions.

AFFINITY PARTNERAFFINITY PARTNER: Some institutions lend their: Some institutions lend theirnames to an issuer to attract customers that havenames to an issuer to attract customers that havea strong relationship with that institution, and geta strong relationship with that institution, and getpaid a fee or a percentage of the balance for eachpaid a fee or a percentage of the balance for eachcard issued using their name.card issued using their name.

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TRANSACTION STEPSTRANSACTION STEPS

AUTHORIZATIONAUTHORIZATION Approval code which the Approval code which themerchant stores with the transaction.merchant stores with the transaction.

BATCHINGBATCHING Transactions stored in batches Transactions stored in batches

which are send to the acquirer.which are send to the acquirer.

CLEARING AND SETTLEMENTCLEARING AND SETTLEMENT debits the issuers debits the issuersfor payment and credits the acquirer.for payment and credits the acquirer.

FUNDINGFUNDING - Merchant receives the amount- Merchant receives the amount

totaling the funds in the batch minus thetotaling the funds in the batch minus the

"discount rate."discount rate.

CHARGEBACKSCHARGEBACKS - Chargeback is an event in which- Chargeback is an event in which

money in a merchant account is held due to amoney in a merchant account is held due to a

dispute relating to the transaction.dispute relating to the transaction.

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TYPES OF CREDIT CARDSTYPES OF CREDIT CARDS

CREDIT CARDS FOR BAD CREDITSCREDIT CARDS FOR BAD CREDITS1.1. SECURED CREDIT CARDSSECURED CREDIT CARDS

A secured credit card is a type of creditA secured credit card is a type of creditcard secured by a deposit accountcard secured by a deposit accountowned by the cardholder.owned by the cardholder.

Typically, the cardholder must depositTypically, the cardholder must depositbetween 100% and 200% of the totalbetween 100% and 200% of the total

amount of credit desired.amount of credit desired. Thus if the cardholder puts down Thus if the cardholder puts down

$1000, they will be given credit in the$1000, they will be given credit in therange of $500$1000.range of $500$1000.

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2.2. PREPAID CREDITPREPAID CREDIT

CARDSCARDS AA prepaid credit cardprepaid credit card is not a credit card,is not a credit card,

since no credit is offered by the card issuer: thesince no credit is offered by the card issuer: thecard-holder spends money which has beencard-holder spends money which has been"stored" via a prior deposit by the card-holder or"stored" via a prior deposit by the card-holder or

someone else, such as a parent or employer.someone else, such as a parent or employer.

Prepaid cards can be issued to minors (abovePrepaid cards can be issued to minors (above13) since there is no credit line involved.13) since there is no credit line involved.

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STANDARD CREDITSTANDARD CREDIT

CARDSCARDS1.1. BALANCE TRANSFER CREDIT CARDSBALANCE TRANSFER CREDIT CARDS

Balance transfer credit cards allowBalance transfer credit cards allowconsumers to transfer a high interest creditconsumers to transfer a high interest creditcard balance onto a credit card with a lowcard balance onto a credit card with a low

interest rate. Typical in the market todayinterest rate. Typical in the market todayare balance transfer credit cards with anare balance transfer credit cards with anintroductory annual percentage rate (APR)introductory annual percentage rate (APR)of 0 percent, with that introductory orof 0 percent, with that introductory or

"teaser" rate lasting several months up to a"teaser" rate lasting several months up to ayear.year.

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2.2. LOW INTEREST CREDITLOW INTEREST CREDIT

CARDSCARDS

Low interest credit cards offer either a lowLow interest credit cards offer either a low

introductory APR that jumps to a higherintroductory APR that jumps to a higher

rate after a certain period, or a single lowrate after a certain period, or a single low

fixed-rate APR. Low interest cards can befixed-rate APR. Low interest cards can bevery useful when consumers need make avery useful when consumers need make a

large purchase because it allows severallarge purchase because it allows several

months to a year to pay it off with verymonths to a year to pay it off with very

low or no interest.low or no interest.

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CONTD.CONTD.

Thus, a stolen card can be cancelled,Thus, a stolen card can be cancelled,

and if this is done quickly, will greatlyand if this is done quickly, will greatly

limit the fraud that can take place inlimit the fraud that can take place in

this way.this way.

The PCI DSS is the security standardThe PCI DSS is the security standard

issued by The PCI SSC (Payment Cardissued by The PCI SSC (Payment CardIndustry Security Standards Council).Industry Security Standards Council).

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CREDIT CARD COSTSCREDIT CARD COSTS

Annual FeesAnnual Fees

InterestInterest Annual PercentageAnnual Percentage

Rate (APR)Rate (APR)

Average DailyAverage Daily

Balance MethodBalance Method

Cash AdvancesCash Advances

ConvenienceConvenienceChecksChecks

Penalty RatesPenalty Rates

Low Interest TeaserLow Interest Teaser

RatesRates

Balance TransfersBalance Transfers

Late FeesLate Fees Over Credit LimitOver Credit Limit

FeesFees

Bounced CheckBounced Check

FeesFees CurrencyCurrency

Conversion FeesConversion Fees

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Credit Card Dos

Use a debit card vs a credit card

Use a card with no annual fee and low

interest ratesKnow all of your cards hidden fees

Always pay more than the minimum each

monthPay on time, all the time

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Credit Card Donts

Dont 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

Th F P t M d lTh F P t

M d l

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The Four Party ModelThe Four Party Model

(Credit Card)(Credit Card)

CardholderCardholder MerchantMerchant

IssuerIssuer AcquirerAcquirer

CardFee

s

Convenie

nce

&Credit

Card Payment Facility

Purchase goods / services

using card payment

instrument

Settleme

nt&

Payment

Services

Merchan

t

ServiceC

harge

Settlement & Credit Risk

Bearing

Interchange Fee

WHICH CARD DO YOU WANT INWHICH CARD DO YOU WANT IN

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WHICH CARD DO YOU WANT INWHICH CARD DO YOU WANT IN

YOUR WALLET??YOUR WALLET??

Current data suggests that debit cards areCurrent data suggests that debit cards are

more popular with consumers than creditmore popular with consumers than credit

cards.cards.

A recent TNS Financial Services ConsumerA recent TNS Financial Services Consumer

Credit Card Program Study indicated that overCredit Card Program Study indicated that over

60 percent of consumers prefer using debit60 percent of consumers prefer using debit

cards to credit cards as a payment vehicle,cards to credit cards as a payment vehicle,

because debit feels more like "real money."because debit feels more like "real money."

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CONTD..CONTD..

Debit cards are also gaining favor as a form ofDebit cards are also gaining favor as a form of

online payment. Based on data from Jupiteronline payment. Based on data from Jupiter

Research in American Banker, debit cards willResearch in American Banker, debit cards will

account for 46 percent of all online purchasesaccount for 46 percent of all online purchases

by 2010, compared to 41 percent in 2006. Theby 2010, compared to 41 percent in 2006. The

same data forecasts a slide in credit card usesame data forecasts a slide in credit card use

to 35 percent of all online purchases in 2010to 35 percent of all online purchases in 2010

from 41 percent in 2006from 41 percent in 2006

8/6/2019 Debit Credit Card

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