know your credit cards
TRANSCRIPT
Contents
What Is a Credit Card?
A Brief History of Credit Cards
Elements of a Credit Card
Benefits and Costs
Modern Innovations
What Is a Credit Card?
A cashless payment method
With revolving credit limits
Issued by financial institutions
An option to borrow
What Is a Credit Card?
Credit card
•Pay with credits
•Revolving credit limits
•Signed
Debit card
•Pay with savings
•Limited to account balance
•Signed
Stored-value card
•Prepaid
•Limited to account balance
•Anonymous
Charge
card?
What Is a Credit Card? Major Brands
American Express
VISA
MasterCard
Japan Credit Bureau
China UnionPay
Discover/Diners
What Is a Credit Card?
Card Levels
Levels VISA MasterCard American Express
(Blue box/Centurion )
Japan
Credit
Bureau
China UnionPay
Top Infinite
Privilege/
BLACK
World Elite Centurion/Black
Infinite World Diamond
Signature/
Palladium
Priority Platinum
Platinum Platinum Platinum Platinum Platinum
Titanium
Gold Gold Gold Gold Gold
Entry Classic Standard Standard/Green Standard Standard
Contents
What Is a Credit Card?
A Brief History of Credit Cards
Elements of a Credit Card
Benefits and Costs
Modern Innovations
A Brief History of Credit Cards
1950 Diners Club (Frank McNamara, Ralph Schneider)
1850 American Express (1958 Centurion)
1958 BankAmericard (1976 VISA)
1966 Master Charge: The Interbank Card (1979 MasterCard)
A Brief History of Credit Cards
A Brief History of Credit Cards
A Brief History of Credit Cards
A Brief History of Credit Cards
A Brief History of Credit Cards
A Brief History of Credit Cards
Contents
What Is a Credit Card?
A Brief History of Credit Cards
Elements of a Credit Card
Benefits and Costs
Modern Innovations
Elements of a Credit Card
Elements of a Credit Card
(Number’s meaning)
Issuer identification number (IIN)
Major Industry Identifier (MMI)
M: Major Industry Identifier
M + I: Issuer Identification Number
A: Account number (9-12)
C: Check digit
https://www.bindb.com/bin-database.html
Elements of a Credit Card
(Number’s meaning)Issuing network IIN ranges Length Validation
American Express 34, 37 15 Luhn algorithm
China UnionPay 62 16-19 Luhn algorithm
Diners Club Carte Blanche 300-305 14 Luhn algorithm
Diners Club International 300-305, 309, 36, 38-39 14 Luhn algorithm
Diners Club United States & Canada 54, 55 16 Luhn algorithm
Discover Card 6011, 622126-622925, 644-649, 65 16 Luhn algorithm
JCB 3528-3589 16 Luhn algorithm
Maestro 500000-509999, 560000-699999 12-19 Luhn algorithm
MasterCard 51-55 16 Luhn algorithm
Visa 4 13, 16 Luhn algorithm
Visa Electron 4026, 417500, 4405, 4508, 4844, 4913, 4917 16 Luhn algorithm
Elements of a Credit Card (Card
Security Code)
2nd Code: Sought by merchants for card not present transactions occurring by mail or fax or over the telephone or Internet.
China UnionPay – Card Validation Number 2 ("CVN2"), 3
MasterCard – card validation code ("CVC2"), 3
Visa – card verification value ("CVV2"), 3
Discover – card identification number ("CID"), 3
American Express – "CID" or "unique card code”, 4
1st Code: Encoded on track-2 of the magnetic stripe of the card and
used for card present transactions.
CVC1 or CVV1,
Contents
What Is a Credit Card?
A Brief History of Credit Cards
Elements of a Credit Card
Benefits and Costs
Modern Innovations
Benefits and Costs
Sign-Up Bonus: Debit balance, physical gifts
Rewards: Cash Rebate, points gained
Grace- Period: Interest free period, Invest your money elsewhere
Ease of Purchase: Cashless
Membership: Discounts or access to member-only resources such as
FHR(Fine Hotels & Resorts) or airport lounge (Priority Pass)
Building a Credit Line
Emergencies
Benefits and Costs
Interests: 20% up
Foreign currency conversion fees: 2.5% up
Dynamic currency conversion fees: 3% up
Over credit limit fee
Annual fee
Contents
What Is a Credit Card?
A Brief History of Credit Cards
Elements of a Credit Card
Benefits and Costs
Modern Innovations
Modern Innovations
Offline Payment - Contactless
American Express: ExpressPay
VISA: payWave
MasterCard: PayPass
China UnionPay: QuickPass
Modern Innovations
Offline Payment - EMV
A global standard for inter-operation of integrated circuit cards (IC
cards or "chip cards")
http://www.emvco.com/about_emvco.aspx?id=156
2002 - Europay, MasterCard and Visa
2004 - JCB
2009 - American Express
2013 - China UnionPay
2013 - Discover
Modern Innovations
Offline Payment – Mobile Payment
Google Wallet, 2011
Apple Pay, 2014
NFC (Near Field
Communication)
Modern Innovations
Online Payment(3-D Secure )
3-D Secure (an XML-based protocol intended to improve online
payment security)
Developed by Visa, under the name of Verified by Visa.
Adopted by MasterCard as MasterCard SecureCode,
Adopted by JCB International as J/Secure.
Adopted by American Express as SafeKey.
Modern Innovations
Online Payment
Virtual Credit Cards: Supplementary to primary
cards, no physical body
MasterPass: a simple, convenient, trusted digital
wallet for faster safe shopping at thousands of
online merchants.
How to choose?
Know your needs and the card policies
Never use cash advance unless there is an emergency
Be cautious about hidden costs (OCL, FCC and DCC)
Questions and Answers
Thank you!