babi project ready

8/4/2019 Babi Project Ready

1/28

4/14/2012 1

DEBIT CARD&

CREDIT CARD


2/28

NAME ROLL NO.

DOMINIC GOUVEIA 10B718

ABHISHEK GUPTA 10B720

NISHA GUPTA 10B721

HARISH JAIN 10B722

DARSHAN IYER 10B761

2


3/28

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


4/28

4

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.


5/28

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


6/28

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

4/14/2012 6


7/284/14/2012 7

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%


8/28

4/14/2012 8

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electronic check - funds are withdrawn directlyfrom either the bank account, or from the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.


9/28

9

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


10/28

4/14/2012 10

i4 MAESTRO DEBIT CARD

First Debit Gold card


11/28

4/14/2012 11

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


12/28

12

ADVANTAGES

ANDDISADVANTAGES


13/28

13

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.


14/28

14

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.


15/28

15

CREDIT

CARD


16/28

16

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.


17/28

4/14/2012 17


18/28

4/14/2012 18

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


19/28

4/14/2012 19

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.


20/28

TYPES OF CREDIT

CARDS

4/14/2012 20


21/28

4/14/2012 21

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.


22/28

4/14/2012 22

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.


23/28

4/14/2012 23

STANDARD CREDIT CARDS

1. BALANCE TRANSFER CREDIT CARDS


24/28

4/14/2012 24

2. LOW INTEREST CREDIT

CARDS


25/28

4/14/2012 25

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


26/28

26

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."


27/28

4/14/2012 27

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


28/28

28

babi project ready

Documents