The content of the article
- What is a bank card?
- What does a bank card look like?
- Front side
- back side
- Types of Bank Cards
- Virtual for online shopping
- Prepaid gift
- Embossed Card
- Bank Card Payment Systems
- How does a bank card work?
- How to choose a bank card
- Pros and cons
An integral part of most Russians have become non-cash payment methods. A bank card is a type of payment system for paying for services and purchases, storing funds, making transfers and payments via the Internet or ATMs. However, there are people who have not yet decided to use cards because of ignorance of the advantages and features of this banking product.
What is a bank card?
A product such as payment cards appeared in the middle of the 20th century and has already become familiar to most Russians. Plastic can be used to store your savings, manage expenses, earn wages and social benefits, pay for services and purchases. Initially, the cards were cardboard rectangles with perforations in separate places, which only very rich people owned. Today, plastic is used for their manufacture, and the range of products is designed for all categories of citizens, including children and senior citizens.
What does a bank card look like?
All types of bank credit cards have an international format (according to ISO 7810 ID-1): 8.56 cm x 5.398 cm. Plastic thickness 0.76 mm. It has front and back sides, each of which carries different information. The design and shade of plastic depend on the issuer and the features of the payment system. The design of the front side, as a rule, provides for a picture, and the reverse side is made in the same color. The background contributes to the issuer’s brand recognition and aesthetic perception of the card.
Each side is important and contains functional information. On the outer surface, apply the following:
- Four-digit number – an important element of data protection, must coincide with the first block of the number.
- Name, surname of the owner in Latin letters. Information is applied to the plastic of customers who decide to personalize their card..
- Validity (month / year). After its expiration, the client can reissue the card for free, while all funds in the account will be saved, and his details will not change.
- Logo, hologram of the used payment system.
- Number (15, 16 or 19 characters).
- Authentication code (if the bank card belongs to the American Express system, in other cases it is applied on the back).
- Integrated chip.
- Logo of the issuing bank.
- Contactless payment mechanism icon.
Any bank card on the back has the following elements:
- Bank’s name.
- Paper strip for sample owner signature.
- CVV2 / CVC2 code (needed to identify the card and customer for online purchases).
- Magnetic strip (storage medium).
Types of Bank Cards
What are bank cards? There are many differences by which all products are classified. First of all, a card can be issued instantly or produced within two weeks. It depends on whether it is registered or not. By the type of funds that are in the account, distinguish between credit and debit. In addition, banks issue gift options that can be presented to loved ones. Especially for online stores, virtual ones have been developed that have all the data for identifying the holder, but do not have physical media.
This option is different in that it is used exclusively for storing the holder’s own funds. You can pay with a card for a purchase or service only if you have the necessary amount on the balance sheet. However, the issuer may open to the debit card holder an overdraft (if the function is provided for by agreement), which is needed for payments in case of insufficient funds in the account. A card designed to transfer salaries is issued as part of a salary project.
This type is distinguished by the fact that the holder’s account stores not only its own funds, but also borrowed funds. The issuer sets a certain credit limit, beyond which it is impossible to spend bank money from an account. You can withdraw cash, use it to pay for purchases and services. All credit cards differ in the method of calculating interest on the use of borrowed funds. Most cards have a grace period when you can use money for free. Others include interest accrual immediately after activation and the first payment transaction.
Virtual for online shopping
Before ordering goods online, it is important to make sure the security of the online store. If you use your credit card or debit on the network, there is a risk of data leakage. This threatens to steal funds from the owner’s account. Financial institutions took care of their customers and developed a product such as virtual. They do not have a physical medium and are used only for operations on the Internet. After opening an account, the client receives all the details: number, expiration date, code CVC2 / CVV2.
In order not to give relatives or colleagues money in envelopes, banks developed special prepaid ones. The product is characterized by limited functionality and validity. Plastic cannot be replenished or cash withdrawn from it. Electronic money can be spent on purchases or services, after which the credit card cannot be used. The credit card is unnamed, but has all the details of a regular card and can be used around the world.
Plastic cards are issued both with a flat and with a raised surface. In the second case, embossing is used in the manufacture – the technology of extruding identification information on the surface of the card:
- validity period (month and year);
- holder data;
- employer company name (for corporate and payroll clients).
Unembossed bank credit cards have a completely flat surface. It is worth noting that making cards with a relief costs the bank much more expensive, therefore premium products (gold, platinum series) are usually embossed. The technology is used to simplify the identification of the owner and plastic, as well as to increase the level of protection of customer data.
Bank Card Payment Systems
Absolutely all card products are made on the basis of one of the payment systems. All of them have their own distinctive features and a distinctive logo. In Russia issued cards of the following payment systems:
- Visa – the most popular, valid in Russia and abroad.
- Maestro is a Russian payment system based on which cards are valid only within the country.
- Mastercard – a card based on this payment system is slightly inferior to the previous form and can be used in many countries.
- American Express – based on this payment system, credit cards are rarely used by Russians. However, the advantage of this type is that American Express cards are accepted anywhere in the world..
- Payment system “Mir” appeared relatively recently. Cards based on it are issued by most Russian banks and are valid only within the Russian Federation.
How does a bank card work?
This bank card is improved every year. After receiving at the bank, you need to activate the card, then insert it into the acquirer bank terminal. The device reads information from the card, after which the transaction is conducted. Modern credit cards can be equipped with a protection system when paying for purchases on the Internet and a contactless payment function, when the operation does not require the introduction of a PIN code. To make a purchase payment in the online store, the information and code cvc2 / cvv2 is used.
The payment procedure includes the following steps:
- Acquiring Bank processes information.
- A request is sent to the issuing bank to transfer the necessary amount from the card to the seller’s account.
- If the holder has the required amount in the account, the issuer transfers the money to the seller.
It is important to consider that absolutely all financial institutions set their tariffs for servicing an account. The cost depends on the category of banking products (Classic, Gold, Platinum). Free service is available to those customers who comply with the issuer’s requirements (provide the necessary movement of funds in the account or a monthly balance). As part of banking services, a client can receive account information around the clock, block a card, use Internet banking for free.
How to choose a bank card
Each bank offers the Russians a whole line of cards. Bank products differ in payment systems, the presence of a chip or magnetic strip, service tariffs, cashback, and bonus programs. To make a choice, it is worth considering all the offers of different banks, pay attention to the issuer rating, conditions (if a credit card is issued).
When choosing a suitable option, the following should be considered:
- Bank credit cards are classic or bonus. It is not difficult to choose which one suits a particular person, given his lifestyle, preferences.
- Before signing a banking service agreement, you should carefully study all of its points.
- An additional level of security – a chip, protection technology for online shopping, embedding ensures the safety of customer savings.
- Those who often use funds in several currencies should consider multicards, the current account with which opens immediately in rubles, euros, dollars.
- It is recommended to choose a banking product with Visa or Master Card payment systems in order to freely use it around the world.
Pros and cons
Among the advantages of plastic cards is the convenience and safety. When traveling abroad, you do not need to convert funds into the currency of another country. In case of loss, you can quickly block the card, after which the bank will reissue the plastic, while the funds in the customer’s account will be saved. The tool is universal, suitable for saving, receiving salaries, withdrawing cash. With it, you can pay for services and purchases in any region of Russia and abroad. Bonus programs and cashback allow you to return part of the money spent back to the account.
Considering the types of plastic cards, it is worth highlighting the following disadvantages of this banking product:
- Not all outlets have terminals for cashless payments..
- For some non-cash transactions, banks charge fees.
- Issuers charge from 300 to 9000 rubles per year for servicing a card account.
- When withdrawing cash or replenishing at ATMs of third-party banks, a commission is charged.
- Unscheduled reissue of a credit card is paid.
- Bank debit card not covered by deposit insurance system.