Debet Card

8/12/2019 Debet Card

http://slidepdf.com/reader/full/debet-card 1/18

3/3/2014

DEBIT CARD

Done by

Yertoleu Dina

Mukhambetova Alina

Baymetova Makhinur



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.



DEBIT CARD

Debit card is a plastic card which provides aalternative payment method to cash whenmaking purchases.

Functionally, it can be called an electronic check,as the funds are withdrawn directly from eitherthe bank account, or from the remaining balanceon the card.

It is also known as BANK CARD or CHECKCARD.



Debit cards can also allow for instant withdrawalof cash, acting as the ATM card for withdrawingcash and as a cheque guarantee card. Merchants

can also offer "cashback"/"cashout" facilities tocustomers, where a customer can withdraw cashalong with their purchase.



i4 MAESTRO DEBIT CARD

First Debit Gold card



Debit Card

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 primary

checking account

PIN-system security Change your PIN at any Merchants Bank branch

No annual fee

Choose from three card designs



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



1. ONLINE DEBIT CARD

Online debit cards require electronicauthorization of every transaction.

The debits are reflected in the user’s account

immediately. The transaction may be additionally secured with

the personal identification number (PIN)

authentication system and some online cardsrequire such authentication for everytransaction, essentially becoming enhancedautomatic teller machine (ATM) cards.



2. OFFLINE DEBIT CARD

Offline debit cards have the logos of major credit cardsor major debit cards and are used at the point of salelike a credit card.

This type of debit card may be subject to a daily limit,and/or a maximum limit equal to the current/checkingaccount balance from which it draws funds.

Transactions conducted with offline debit cards require2 – 3 days to be reflected on users’ account balances.

In the United Kingdom, Maestro (formerly Switch) and Visa Debit (formerly Delta) are examples of offlinedebit cards.



3. PREPAID DEBIT CARD

Prepaid debit cards, also called reloadable debit cards orreloadable prepaid cards, are often used for recurringpayments.

The payer loads funds to the cardholder's card account. Particularly for US-based companies with a large

number of payment recipients abroad, prepaid debitcards allow the delivery of international payments

without the delays and fees associated withinternational checks and bank transfers.



ADVANTAGES

ANDDISADVANTAGES



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.



CONTD….

4. Like credit cards, debit cards are accepted bymerchants with less identification.

5. Unlike a credit card, which charges higher feesand interest rates when a cash advance isobtained, a debit card may be used to obtain

cash from an ATM or a PIN-based transactionat no extra charge, other than a foreign ATMfee.



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.



The Three Party Model

Cardho lder Merchan t

Processor

Issuer / Acquirer

Card Payment Faci l i ty

Purchase goods / services

using card payment

inst rument

Carri age Fee



The Four Party Model

(Debit Card)Cardho lder Merchant

Issuer Acquirer

T r a n s a c

t i o n

F e e s

C o n v e n

i e n c e

&

p a y m e n

t

i n s

t r u m e n

t

Card Payment Faci l i ty

Purchase goods / services

using card payment

inst rument

S e t t l em

en

t &

P a y m

en

t

S er v i c

e s

M er c h

an

t

S er v i c

e C h

ar g

e

Sett lement & Risk

Bearing

Interchang e Fee



STUDIES AND REVIEWS

The volume of transactions with payment cards inKazakhstan in May 2013 amounted to 546.8 billion tenge

The main share of non-cash payment is made through POS-terminals and ATMs.

As of June 1, 2013 banks issued 13.5 million paymentcards , and the number of card holders was - 11.9 millionpeople ( compared to the situation on the same date in 2012 -

an increase of 24.9 % and 20 9 %, respectively ) . The mostcommon are debit cards, their share is 78.3% , the share ofcredit cards - 18.9% , the share of debit and credit limit withprepaid cards are 1.3 % and 1.5 %, respectively. As of June 1,

2013 of issuing payment cards actually carry 24 Bank and JSC"Kaz ost " .



Documents

Debet Card