e Banking

DEBIT CARD OVERTAKING CREDIT CARD IN INDIA
CHAPTER 1
INTRODUCTION TO BANK
1.1 Introduction
Finance is the life blood of trade, commerce and industry. Now-a-days, banking
sector acts as the backbone of modern business. Development of any country mainly
depends upon the banking system.
The term bank is either derived from old Italian word banca or from a French word
banque both mean a Bench or money exchange table. In olden days, European money
lenders or money changers used to display (show) coins of different countries in big
heaps (quantity) on benches or tables for the purpose of lending or exchanging. Image
Credits © Tardiskey A bank is a financial institution which deals with deposits and
advances and other related services. It receives money from those who want to save in
the form of deposits and it lends money to those who need it.
.Definition of a Bank
Oxford Dictionary defines a bank as "an establishment for custody of money, which it
pays out on customer's order."
1.2 Characteristics / Features of a Bank

1. Dealing in Money
Bank is a financial institution which deals with other people's money i.e. money given
by
depositors.
2. Individual / Firm / Company
A bank may be a person, firm or a company. A banking company means a company

which is in
the business of banking.
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3. Acceptance of Deposit A bank accepts money from the people in the form of
deposits which are usually repayable on demand or after the expiry of a fixed period.
It gives safety to the deposits of its customers. It also acts as a custodian of funds of
its customers.
4. Giving Advances A bank lends out money in the form of loans to those who require
it for different purposes.
5. Payment and Withdrawal A bank provides easy payment and withdrawal facility to
its customers in the form of cheques and drafts, It also brings bank money in
circulation. This money is in the form of cheques, drafts, etc.
6. Agency and Utility Services A bank provides various banking facilities to its
customers. They include general utility services and agency services.
7. Profit and Service Orientation A bank is a profit seeking institution having
service oriented approach.
8. Ever increasing Functions Banking is an evolutionary concept. There is continuous

expansion and diversification as regards the functions, services and activities of a
bank.
9. Connecting Link A bank acts as a connecting link between borrowers and lenders
of money. Banks collect money from those who have surplus money and give the
same to those who are in need of money.
10. Banking Business A bank's main activity should be to do business of banking

which should not be subsidiary to any other business.
11. Name Identity A bank should always add the word "bank" to its name to enable
people to know that it is a bank and that it is dealing in money
Types of Banks and Their Functions – Banking Study Material & Notes Broadly,
banks are classified either into commercial banks or as central bank. they are also
classified as Scheduled and Non-scheduled Banks.
Scheduled banks have been included in the second schedule of the Reserve Bank, and
fulfils the following three criteria:
1. It must have a paid up capital of at least Rs. 5 lakhs.
2. It must fulfil the RBI norms about no activity that may be detrimental to the
depositor’s interests.
3. It must be a Corporation (not a partnership or a single ownership firm). Non-

Scheduled Banks are excluded from the Second schedule of RBI. The Reserve Bank
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does not exercise much control over them, but they report monthly to RBI. Now, we
shall first look into Central Bank first. The central bank has the primary function of
regulating commercial banks and other economic activities in the economy. It acts as
a Banker’s Bank. In India, the central Bank is the Reserve Bank of India. It is the apex
bank who controls all other banks by regulating and supervising their activities.
Now, let’s talk about Commercial banks. These are those banks which provide
banking services to people with a profit motive. They charge a certain prescribed
amount for the services they provide.
There are several types of commercial banks functioning in India based upon different
categories:
I. Public Sector Banks – Majority stake is held by Government State Bank of India
and its associate banks:
These associate banks are State Bank of Bikaner & Jaipur, State Bank of Hyderabad,
State Bank of Mysore, State Bank of Patiala, and State Bank of Travancore.
Nationalised Banks– These are those commercial banks that have been nationalized
for fulfilling the social objectives of the government.
There are 20
Nationalised banks in India. These are – Allahabad Bank, Andhra Bank, Bank of
Maharashtra, Bank of Baroda, Canara Bank, Central Bank of India, Bank of India, ,
Corporation Bank, Dena Bank, Indian Overseas Bank, IDBI Bank Ltd., Oriental Bank
of Commerce, Indian Bank, Punjab & Sind Bank, Punjab National Bank, Union Bank
of India, Syndicate Bank, United Bank of India,UCO Bank, and Vijaya Bank.
Regional Rural Banks(RRB) – These banks have been established to strengthen the
rural economy. They facilitate the credit and deposit flow for farmers, artisans,
labourers in their limited local area. These banks are jointly owned by the central and
state government along with a sponsor commercial bank.
1.3 Private Sector Banks

Majority share capital
is with private individuals & corporate Old Private Banks - There are fourteen old
private banks operating in India. These banks were not nationalised when other banks
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were nationalised in 1969 and 1980. These are- Catholic Syrian Bank Ltd., Dhana
Lakshmi Bank Ltd., City Union Bank Ltd., Federal Bank Ltd., Lakshmi Vilas
Private Banks-
There are seven new private banks functioning in the Indian economy. These are-
Axis Bank
Ltd., Development Credit Bank Ltd, ICICI Bank Ltd., IndusInd Bank Ltd., Kotak
Mahindra Bank Ltd., HDFC Bank Ltd., and Yes Bank Ltd.
Foreign Banks- These banks have their registered head offices in a foreign country,
while they operate their branches in India. They can operate in India either through
wholly-owned subsidiaries or through branches. There are 32 foreign banks operating
their various branches in India.
Co-operative Banks – Cooperative banks are those scheduled banks that are regulated
by RBI, under a cooperative structure to provide credit to all categories of businesses.
Their ownership structure is unique where likeminded individuals and companies pool
in money together to support credit facilities to businesses. These can operate in either
Urban or Rural setting. That is another criteria to differentiate these co-operative
banks.
The types of banks in India , This classification of various types of banks in India is
highly useful for solving the banking awareness questions asked in exams conducted
by IBPS, SBI, RBI, and other recruiters in the banking industry. This knowledge also
helps in facing interviews confidently. As an aspirant for banking exams, one must
have updated knowledge of these classifications about the types of banks. Therefore,
we have compiled this short quick revision notes for students. We hope this concise
material is helpful in revision. Please feel free to let us know if there is anything that
you want us to add in this article. Tell us your opinion in the comments below.
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CHAPTER 2
WHAT IS DEBIT CARD
INTRODUCTION
Debit cards are one of the most common forms of payment used in the world today.
These are cards that look identical to credit cards, which are linked directly to your
bank account. When ever you make a purchase, the funds are taken directly from your
account, resulting is a simple and quick transaction. Debit cards are also known as “E-
Checks” and didn’t come around until the late 1970’s, but they have changed the way
that we purchase things globally. There are some spectacular benefits from using a
debit card as your form of payment, but some negative things to consider as well.
What is Debit Card?

A debit card is basically a card used for fund transactions. Going by the name plastic
cash, bank card and more, you can enjoy electronic access to your savings account in
any bank via ATMs. You can deposit and withdraw as per your convenience this way
without the hassle of standing in long queues. Same can be utilized for mobile
banking and internet banking.
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How to get a debit card

Most banks and credit unions give you a free debit card when you open a checking
account, but you might get an ATM card, which instead works almost exclusively at
ATMs. If you don’t receive a debit card, ask your bank for one. Once you have it,
activate it by following your bank’s instructions and set up your PIN for ATM and in-
person transactions.
New debit cards tend to have yellow metallic squares that cover EMV chips, which
are designed to make in-store transactions safer.
2.1 Advantage and disadvantage of Debit card
The Advantages of Debit Cards
1.ExtremelyConvenient
The biggest draw for debit cards is how simple they are to use. Since the payment is
taken directly out of your bank account, where the money already exists, it can be
done instantly. This is much faster than having to wait for a credit transaction to go
through, or having to worry about having enough cash to cover your expenses. It is
especially faster than writing out a check, which many people no longer take.
2. It’ Cash card too

Sure, debit cards are nice, but sometimes cash is a necessity. If you are going garage
sale-ing or to the flea market, you may have to have cash to make the purchases that
you want to. Debit cards still have the ability to give you cash, you can take them to
an ATM and use them there to withdraw the cash. In addition to ATM use, the
majority of stores offer cash back options at checkout.
3. Your Pin Protects You

Debit cards are protected by a four digit pin number that you set yourself. This pin is
needed to make almost any purchase with your debit card. This gives you a great deal
of protection against theft. These cards can also be canceled very easily and quickly,
so if you lose it, you can prevent anyone from being able to do any damage.
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4. Anyone Can Have One

The only thing that you must have to have a debit card is have a bank account.
Anyone can open a bank account with a small minimum deposit. This makes debit
cards much different than credit cards, because approval for a credit card largely
depends on your credit score and payment histories. None of these things are taken
into account when getting a debit card.
5. Strong Budgeting Tool

One of the best things about a debit card is that you cannot spend more money than
you have, which means you cannot go into debt. This helps you to only spend the
money that you have to spend because you cannot accumulate new debt, like with
credit cards.
The Disadvantages of Debit Cards

1. Your Credit Score Isn’t Helped
A person’s credit score impacts them for their entire life, whether it be negative or
positive. With a debit card, you do not impact your credit score at all, which means
that you cannot build it up. Having a higher credit score gives you lower interest rates
and increased lines of credit.
2. Fees Galore
When you have a debit card, fees are likely a part of your life as well. Banks inflict a
wide variety of different fees to debit card holders, which can add up very fast. Some
of these include monthly use charges, major overage fees, and transaction fees or
limits.
3. Instant Money Means Instant Risk

If someone got a hold of your debit card, they would be able to take money directly
from your bank account. With a credit card, the charges are much easier to dispute,
and they do not interfere with your direct lines of income the way that debit cards do.
4. Merchant Blocks
Depending on where you are using your debit card, or what you are buying, the
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merchant can put a “hold” on your money. For example, if you are filling your tank
up with gas, the gas station will likely put a hold up to 100 dollars on your card, this is
because they want to ensure that you have the funds to pay for the gas before you
pump it. The bank can take up to 48 hours to free this money up again.
2.2 Types of Debit Cards in India

• Visa Debit Cards
These debit cards are issued with the bank’s tie-up with VISA payment services
providing the Verified by Visa (VbV) platform for online transactions.
• Visa Electron Debit Cards

Visa Electron debit cards are very similar to Visa debit cards but these cards do not
provide the overdraft feature.
• MasterCard Debit Cards

A MasterCard Cirrus Card or a MasterCard Maestro Card gives customers access to
their funds worldwide and they can perform online transactions using their bank
accounts on the MasterCard Secure Code platform.
• Contactless Debit Cards

Customers can make payments with just a tap or wave of their contactless debit
cards near Pops terminals, with the cards working on Near Field Technology (NFC)
thereby making electronic payments safer.
• Repay Debit Cards

Introduced as a domestic card scheme by the NPCI, Repay debit cards facilitate
online purchases and transactions on the Discover network and ATM transactions
under the National Financial Switch network.
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• Maestro Debit Card

Founded in 1992, Maestro from MasterCard is a premier, international debit card
service that has been popularly adopted at over 13 million locations spread across
100+ countries around the world. Maestro, as easily identified by the signature logo
on all partner cards, helps the customer gain immediate access to his/her money
through a robust, international network of compatible ATMs, POS outlets and
online resources.
Top Banks providing Debit Cards in India

Indian consumers can choose from a wide range of debit cards offered by various
Indian banks tailor made to suit their banking requirements. The list of banks is as
follows
• State Bank of India Debit Card

SBI provides an eclectic array of Visa, MasterCard and Repay debit cards
customizing the card features depending on the customer’s needs. State Bank of
India offers 10 different debit cards comprising of personal and business cards.
• HDFC Bank Debit Card

Hassle-free cashless shopping with HDFC debit cards and secure online
transactions can be done with on Visa and MasterCard Secure Code platforms.
Eleven debit card alternatives are offered by HDFC to Indian customers.
• ICICI Bank Debit Card

Pick an ICICI bank debit card of your choice and customize it with an image that is
a reflection of your personality. ICICI customers can choose from an extensive
selection of 31 cards categorized under Premium, Personal, Business, Expressions
and Unifier.
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• Axis Bank Debit Card

Axis Bank debit cards are packed with privileges and offers and customers also
have the option of designing their own debit card. The bank offers a total of 17
debit cards categorized as Business, commercial, premium and other segment cards.
• PNB Debit Card

PNB debit cards are offered in collaboration with MasterCard and Repay and are
accepted at multiple merchant outlets worldwide. Customers can choose from 5
different types of debit cards along with add-on card if required.
• Canada Bank Debit Card

Customers can enjoy the convenience of cashless shopping with a Canada Bank
MasterCard or Visa debit card. Offered in two variants the Canada Bank debit card
comes loaded with exclusive privileges and features.
• Bank of India Debit Card

Offered on MasterCard, Visa and Repay payment platforms, the Bank of India debit
card is a one-of-a-kind card which is valid for domestic and international
transactions. With a wide assortment of cards totalling upto 14, BOI debit cards are
customised to suit the needs of every Indian consumer.
• Bank of Baroda Debit Card

Bank of Baroda offers six different types of personalized debit cards in association
with Visa, MasterCard and RuPay to suit the lifestyle requirements of customers.
• Union Bank of India Debit Card

Union Bank of India provides international debit cards with multiple account access
and add-on cards on the Verified by Visa (VbV) platform. Union Bank provides
two types of debit cards to customers including a RuPay debit card.
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• Syndicate Bank Debit Card

Customers can transact in a currency of their choice but pay in Rupees using their
Syndicate Bank Global Debit Card. With half a dozen debit cards, Syndicate Bank
tries to offer convenience and efficiency to its banking customers.
• HSBC Debit Card

HSBC offers Visa based debit cards to personal banking customers and HSBC debit
cards can be used at multiple merchant outlets and ATMs worldwide. HDFC offers
11 types of debit cards and customers can choose a debit card depending on their
savings account.
• Inducing Bank Debit Card

IndusInd bank offers a mix of international and platinum debit cards on the Verified
by Visa platform along with an exciting rewards program for customers. The bank
offers four different types of debit cards depending on the account held.
• Citibank Debit Card

Citibank offers debit cards along with savings accounts and customers can enjoy
unlimited benefits and add-on features with their Citibank debit cards.
• Standard Chartered Debit Card

Access your bank accounts from anywhere in the world, enjoying attractive
privileges and offers with a Standard Chartered debit card. Offered in seven
different variants, a standard Chartered debit card is a must-have card.
• YES Bank Debit Card

YES Bank offers two variants of international Master Card debit cards namely -
Gold and Silver, with unparalleled benefits. YES Bank provides four types of debit
cards depending on the customer’s requirements.
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A debit card (also known as a bank card or check card) is a plastic payment
card that can be used instead of cash when making purchases. It is similar to a credit
card, but unlike a credit card, the money comes directly from the user's bank account
when using a debit card.
Some cards may bear a stored value with which a payment is made, while most relay
a message to the cardholder's bank to withdraw funds from a payer's designated bank
account. In some cases, the primary account number is assigned exclusively for use
on the Internet and there is no physical card.
In many countries, the use of debit cards has become so widespread that their volume
has overtaken or entirely replaced chequesand, in some instances, cash transactions.
The development of debit cards, unlike credit cards and charge cards, has generally
been country specific resulting in a number of different systems around the world,
which were often incompatible. Since the mid-2000s, a number of initiatives have
allowed debit cards issued in one country to be used in other countries and allowed
their use for internet and phone purchases.
Unlike credit and charge cards, payments using a debit card are immediately
transferred from the cardholder's designated bank account, instead of them paying the
money back at a later date.
Debit cards usually also allow for instant withdrawal of cash, acting as the ATM
card for withdrawing cash. Merchants may also offercashback facilities to customers,
where a customer can withdraw cash along with their purchase.
Types of debit card systems
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An example of the front of a typical debit card:
• Issuing bank logo
• EMV chip (optional and may depend on the issuing institution or bank)
• Hologram (in some cards it's located at the back especially in most
MasterCard)
• Card number (may vary in length but mostly 16-digits with unique last 4
digits. However in dinner cases such as Discover, Diner's Club, UnionPay&
American Express it has a unique 15-digit card number)
• Card brand logo
• Expiration date
• Cardholder's name
An example of the reverse side of a typical debit card:
• Magnetic stripe
• Signature strip panel
• Card Security Code
There are currently three ways that debit card transactions are
processed: EFTPOS (also known as online debit or PIN debit), offline debit (also
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known as signature debit) and the Electronic Purse Card System.One physical card
can include the functions of all three types, so that it can be used in a number of
different circumstances.
Although the four largest bank card issuers (American Express, Discover
Card, MasterCard, and Visa) all offer debit cards, there are many other types of debit
card, each accepted only within a particular country or region, for
example Switch (now: Maestro) and Solo in the United Kingdom,
in Canada, Carte Bleue in France, EC electronic cash (formerly Eurocheque) in

Germany, UnionPay in China, RuPay in India and EFTPOS cards in Australia and
New Zealand. The need for cross-border compatibility and the advent of
theeuro recently led to many of these card networks (such as Switzerland's "EC
direkt", Austria's "Bankomatkasse" and Switch in the United Kingdom) being re-
branded with the internationally recognised Maestro logo, which is part of the
MasterCard brand. Some debit cards are dual branded with the logo of the (former)
national card as well as Maestro (for example, EC cards in Germany, Switch and Solo
in the UK, Pinpas cards in the Netherlands, Bancontact cards in Belgium, etc.). The
use of a debit card system allows operators to package their product more effectively
while monitoring customer spending.
Online debit system
Online debit cards require electronic authorization of every transaction and the debits
are reflected in the user’s account immediately. The transaction may be additionally
secured with the personal identification number (PIN) authentication system; some
online cards require such authentication for every transaction, essentially becoming
enhanced automatic teller machine (ATM) cards.
One difficulty with using online debit cards is the necessity of an electronic
authorization device at the point of sale (POS) and sometimes also a
separate PINpad to enter the PIN, although this is becoming commonplace for all card
transactions in many countries.
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Overall, the online debit card is generally viewed as superior to the offline debit card
because of its more secure authentication system and live status, which alleviates
problems with processing lag on transactions that may only issue online debit cards.
Some on-line debit systems are using the normal authentication processes of Internet
banking to provide real-time on-line debit transactions.
Offline debit system
Offline debit cards have the logos of major credit cards (for
example, Visa or MasterCard) or major debit cards (for example, Maestro in
the United Kingdom and other countries, but not the United States) and are used at
the point of sale like a credit card (with payer's signature). This type of debit card may
be subject to a daily limit, and/or a maximum limit equal to the current/checking
account balance from which it draws funds. Transactions conducted with offline debit
cards require 2–3 days to be reflected on users’ account balances.
In some countries and with some banks and merchant service organizations, a "credit"
or offline debit transaction is without cost to the purchaser beyond the face value of
the transaction, while a fee may be charged for a "debit" or online debit transaction
(although it is often absorbed by the retailer). Other differences are that online debit
purchasers may opt to withdraw cash in addition to the amount of the debit purchase
(if the merchant supports that functionality); also, from the merchant's standpoint, the
merchant pays lower fees on online debit transaction as compared to "credit" (offline)
Electronic purse card system
Smart-card-based electronic purse systems (in which value is stored on the card chip,
not in an externally recorded account, so that machines accepting the card need no
network connectivity) are in use throughout Europe since the mid-1990s, most
notably in Germany (Geldkarte), Austria (Quick Wertkarte), the Netherlands
(Chipknip), Belgium (Proton), Switzerland (CASH) and France (Moneo, which is
usually carried by a debit card). In Austria and Germany, almost all current bank
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cards now include electronic purses, whereas the electronic purse has been recently
phased out in the Netherlands.
2.3 Prepaid debit card

Prepaid debit cards, also called reloadable debit cards, appeal to a variety of users.
The primary market for prepaid cards are unbanked people, that is, people who do not
use banks or credit unions for their financial transactions, possibly because of poor
credit ratings.
The advantages of prepaid debit cards include being safer than carrying cash,
worldwide functionality due to Visa and MasterCard merchant acceptance, not having
to worry about paying a credit card bill or going into debt, the opportunity for anyone
over the age of 18 to apply and be accepted without regard to credit quality and the
option to directly deposit paychecks and government benefits onto the card for
free.[4] Some of the first companies to enter this market were: MiCash, RushCard and
Netspend, who gained market share as a result of being first to market. However,
since 1999, there have been several new providers, such as TransCash, 247card and
iKobo, that offer a number of other benefits, such as money remittance services, card-
to-card transfers, and the ability to apply without a social security number.
As of 2013, several city governments (including Oakland,

California and Chicago, Illinois) are now offering prepaid debit cards, either as part of
a municipal ID card (for persons such as undocumented immigrants, who are unable
to obtain a state driver's license or DMV ID card) in the case of Oakland, or in
conjunction with a prepaid transit pass (Chicago). These cards have been heavily
criticized for their higher-than-average fees, including some (such as a flat fee added
onto every purchase made with the card) that similar products offered by Green Dot
and American Express do not have.
The U.S. federal government uses prepaid debit cards to make benefits payments to
people who do not have bank accounts. In 2008, the U.S. Treasury Department paired
withComerica Bank to offer the Direct Express Debit MasterCard prepaid debit
card.[9]
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In July 2013, the Association of Government Accountants released a report on

government use of prepaid cards, concluding that such programs offer a number of
advantages to governments and those who receive payments on a prepaid card rather
than by check. The prepaid card programs benefit payments largely for cost savings
they offer and provide easier access to cash for recipients, as well as increased
security. The report also advises that governments should consider replacing any
remaining cheque-based payments with prepaid card programs in order to realize
substantial savings for taxpayers, as well as benefits for payees.
Consumer protections
Consumer protections vary, depending on the network used. Visa and MasterCard, for
instance, prohibit minimum and maximum purchase sizes, surcharges, and arbitrary
security procedures on the part of merchants. Merchants are usually charged higher
transaction fees for credit transactions, since debit network transactions are less likely
to be fraudulent. This may lead them to "steer" customers to debit transactions.
Consumers disputing charges may find it easier to do so with a credit card, since the
money will not immediately leave their control. Fraudulent charges on a debit card
can also cause problems with a checking account because the money is withdrawn
immediately and may thus result in an overdraft or bounced checks. In some cases
debit card-issuing banks will promptly refund any disputed charges until the matter
can be settled, and in some jurisdictions the consumer liability for unauthorized
charges is the same for both debit and credit cards.
In some countries, like India and Sweden, the consumer protection is the same
regardless of the network used. Some banks set minimum and maximum purchase
sizes, mostly for online-only cards. However, this has nothing to do with the card
networks, but rather with the bank's judgement of the person's age and credit records.
Any fees that the customers have to pay to the bank are the same regardless of
whether the transaction is conducted as a credit or as a debit transaction, so there is no
advantage for the customers to choose one transaction mode over another. Shops may
add surcharges to the price of the goods or services in accordance with laws allowing
them to do so.
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Banks consider the purchases as having been made at the moment when the card was
swiped, regardless of when the purchase settlement was made. Regardless of which
transaction type was used, the purchase may result in an overdraft because the money
is considered to have left the account at the moment of the card swiping.
Financial access
Debit cards and secured credit cards are popular among college students who have not
yet established a credit history. Debit cards may also be used by expatriated workers
to send money home to their families holding an affiliated debit card.
Issue with deferred posting of offline debit

To the consumer, a debit transaction is perceived as occurring in real-time; i.e. the
money is withdrawn from their account immediately following the authorization
request from the merchant, which in many countries, is the case when making an
online debit purchase. However, when a purchase is made using the "credit" (offline
debit) option, the transaction merely places an authorization hold on the customer's
account; funds are not actually withdrawn until the transaction is reconciled and hard-
posted to the customer's account, usually a few days later. However, the previous
sentence applies to all kinds of transaction types, at least when using a card issued by
a European bank. This is in contrast to a typical credit card transaction; though it can
also have a lag time of a few days before the transaction is posted to the account, it
can be many days to a month or more before the consumer makes repayment with
actual money.
Because of this, in the case of a benign or malicious error by the merchant or bank, a
debit transaction may cause more serious problems (for example, money not
accessible; overdrawn account) than in the case of a credit card transaction (for
example, credit not accessible; over credit limit). This is especially true in the United
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States, where check fraud is a crime in every state, but exceeding your credit limit is
not.
Internet purchases
Debit cards may also be used on the Internet either with or without using a PIN.
Internet transactions may be conducted in either online or offline mode, although
shops accepting online-only cards are rare in some countries (such as Sweden), while
they are common in other countries (such as the Netherlands). For a
comparison, PayPal offers the customer to use an online-only Maestro card if the
customer enters a Dutch address of residence, but not if the same customer enters a
Swedish address of residence.
Internet purchases can be authenticated by the consumer entering their

PIN if the merchant has enabled a secure online PIN pad, in which case the
transaction is conducted in debit mode. Otherwise, transactions may be conducted in
either credit or debit mode (which is sometimes, but not always, indicated on the
receipt), and this has nothing to do with whether the transaction was conducted in
online or offline mode, since both credit and debit transactions may be conducted in
both modes.
How secure are debit cards?

These cards are safer to use than cash or a check, but they have fewer federal fraud
protections than credit cards. If your debit card gets lost or stolen, the maximum
amount you’d be responsible for depends on when you report the loss or theft to your
bank.
• Before any fraudulent charges occur: $0
• Within two business days: $50 limit
• Within 60 calendar days: $500 limit
• After 60 days: No protection
So you can be responsible for virtually everything if you don’t report fraud. If just
your card number is stolen, however, you’re protected for all fraudulent charges for
up to 60 days.
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Credit cards, on the other hand, have a maximum loss of $50 for unauthorized
charges, and many issuers offer protection for any card fraud.
Debit cards make it easy to get cash and pay for things. Knowing what they are and
when to use them will help you avoid fees and other inconvenience
The differences between ATM cards, debit cards, and credit

cards.ATM cards
The front of an ATM card An ATM card is a PIN-based card. That means that in
addition to using it at ATMs, you may also be able to use it to make purchases (by
entering your Personal Identification Number) if the merchant is using one of the
same electronic ATM networks that’s listed on the back of your card. Debit card
A debit card A debit card looks just like a regular ATM card, and you can use it at
ATMs. The difference is that a debit card has a Visa or Master card logo on its face.
That means you can use a debit card wherever Visa or Master card debit cards are
accepted, for example, department stores, restaurants, or online. Credit card
A credit card with a red circle and a slash through it A debit card is not a credit card.
When you use a debit card, the money is deducted from your checking account. With
a credit card, you’re borrowing money to be repaid later.ATM and debit cards allow
you to use ATMs, a safe and convenient way to manage your money. There are
millions of ATMs worldwide and you can use many ATMs 24 hours a day, 7 days
week. ATM and debit cards are also a convenient way to make purchases without
carrying cash that help you keep better track of the money you
The parts of a debit card

Learn the different areas on the front and back of a debit card.The front of a debit card
includes:
The front of a debit card with a debit card number, an expiration date, and a Visa
logo
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1. The debit card number

2. The expiration date
A Visa or Master card logo
Debit card number
This 16-digit number is unique to your card. It is different from your checking
account number. Expiration date
Your card can only be used until this date. A new card will be automatically sent to
your address prior to the expiration date. Visa or Master card logo
This symbol means that you can use this card wherever Visa or Master card debit
cards are accepted, for example, department stores, restaurants, and online.
The back of a debit card includes:
The back of a debit card

The customer service number
The signature bar
The card verification value
The network logos
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Customer service number:

call this toll-free number when you have questions about your account. Signature bar
For your protection against fraud, be sure to sign here as soon as receive your card.
Card verification value (CVV)
This number is unique to your card. When you use your card to make purchases over
the phone or Internet, some merchants may require you to supply this number to
confirm that you have the card with you. Network logos
The logos that appear on your card indicate where it can be used. You can:
Access any ATM that carries the same logos as your card.
Make PIN-based purchases at merchants that display the same Point-of-Sale network.
Make signature-based purchases at merchants that accept Visa or MasterCard debit
cards.
Check recent transactions and available balance:

1.With online banking
2.At many ATMs
3.By phone
4.At the bank
5.Mobile banking
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Make deposits
1.Via electronic direct deposit
2.At many ATMs
3.At the bank
4.By mail
One example of an Electronic Funds Transfer is direct deposit. That’s when money,
such as a pay check or Social Security check, is electronically transferred directly into
your account. This way you receive the funds even faster and more safely than with a
paper check. You’ll receive proof of deposit from your bank for all direct deposits. By
setting up direct deposit, you’ll have timely access to your pay check or other income
on payday. Most employers and government agencies offer direct deposit. Get cash
At the ATM
At the bank
At many merchants, when you make a PIN-based purchase with your ATM or debit
card
Make purchases
• With a check
• With an ATM card
• With a debit card
• Over the phone with a debit card
• On the Internet with a debit card depending on the merchant
Transfer funds
• ATM
• Online banking
• At the bank
• International (global) remittance
At many banks you can set up automatic deposits from your checking to your savings
account. It can be easier to save more, and more quickly, when it’s automatic. You
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may also have the option of automatic payments. This can help ensure that your
regular monthly bills are always paid on time. International remittance, also called
global remittance, is a type of Electronic Funds Transfer. Let’s say you have family
members who live outside of the United States. This service allows you to quickly
and easily transfer funds to them from your account. Ask your bank if they offer this
service.
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CHAPTER 3
CREDIT CARD
Introduction:
Some credit cards come with an introductory rate, a low interest rate applied during
the first several months or billing cycles of the account opening. Introductory rates are
often given to credit card applicants with good or excellent credit scores.
Introductory rates may apply only to a certain type of balance, for example, only to
purchases or only to balance transfers. But, some credit cards apply the introductory
rate to both purchases and balance transfers. It’s not likely that an introductory rate
would apply to a cash advance.
The terms of your credit card may require you to make the balance transfer within a
certain amount of time or by a certain date to receive the introductory interest rate.
Balance transfers made after that date may be charged interest based on the regular
balance transfer rate.
How Long Does an Introductory Rate Last?

Introductory rates must last at least six months, but may be longer than that depending
on the credit card. You may see credit cards with introductory rates for 6 months, 12
months, even as many as 21 months.
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The credit card issuer may state the introductory period in months or billing cycles.
Note that because a billing cycle is typically shorter than a calendar month, a 12-
billing cycle introductory rate is actually shorter than 12 months. For instance, on a
credit card with a 27-day billing cycle, a 12-month introductory rate would actually
last 10 months and about 3 weeks.
The Benefit of an Introductory Rate
Introductory rates are attractive because they allow cardholders to pay less in finance
charges than they would on a credit card with a higher interest rate.
Introductory rates are typically very low, ranging from 0% to 4% for 6 months up to
21 months. Cardholders can best take advantage of an introductory rate by paying off
the credit card balance before the rate expires.
Once you're approved for a credit card with an introductory rate, note which balances
receive the rate and the date your introductory rate will end. Mark the end of the
introductory period on your calendar so you can be sure to pay off your balance
before the introductory rate expires.
If you're trying to pay off a balance transfer under a 0% interest promotion, divide the
balance by the number of months in the introductory period so you know the payment
you need to make to pay your balance. For example, to pay off a $4,000 balance
under a 13-month interest promotion, you need to pay about $308 each month.
How You Could Lose Your Introductory Rate Before It Expires

Your introductory rate can expired prematurely if you're more than 60 days late on
your credit card payment. If that happens, your credit card interest rate may increase
to the penalty rate, which is the highest interest rate charged on the credit card.
Unfortunately, once you've lost your introductory rate, you may not be able to get it
back.And the recent late payments may prevent you from qualifying for an
introductory rate on another credit card.
Credit Card Life After the Introductory Rate

You can still use your credit card after the introductory rate expires. New balances
and any balance you haven't paid by the time your rate expires will be charged interest
based on the regular APR. Because you're paying more interest on your credit card,
your payments won't have the same impact on your credit card balance. Therefore, if
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you want to pay off your balance after the introductory rate expires, you'll have to
increase your monthly payment.
However, paying your balance in full each month lets you avoid paying finance
charges on purchases and balance transfers.
Definition:
Standard-size plastic token, with a magnetic stripe that holds a machine readable
code. Credit cards are a convenient substitute for cash or check, and an essential
component of electronic commerce and internet commerce. Credit card holders (who
may pay annual service charges) draw on a credit limit approved by the card-issuer
such as a bank, store, or service provider (an airline, for example). Cardholders
normally must pay for credit card purchases within 30 days of purchase to avoid
interest and/or penalties.
What Are Credit Cards?
Unlike debit cards, credit cards are not connected to a checking account. Instead,
they are tied to a financial institution, such as a bank or credit company, that is in
the business of issuing revolving lines of credit to consumers. Whereas a debit card
transaction is mainly between the buyer and seller, a credit card transaction
specifically involves a third party: the institution who has loaned money to the
buyer.
For example, if you use your credit card to buy $30 of groceries, you are not
directly paying the grocery store. Instead, the grocery store is paid $30 by the credit
issuer. This is $30 that you now owe the credit card issuer.
With a credit card, you are never limited by the amount of money you have in your
checking account, which can be one of the major cons to debit cards for many
consumers. Instead, you are limited by whatever the credit limit on the card is. If
you are new to the world of credit, a credit card company may only issue you a card
with a $1,000 credit limit. This means you only have $1,000 of revolving credit to
use. Some card issuers increase credit limits over time for those who build up a
good credit history by paying off their credit card each month (i.e., paying back
their loan).
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It is relatively harder to get a credit card than it is to get a debit card, especially for
those with no credit history or a poor credit history. When you apply for a credit
card, the issuer evaluates your creditworthiness to determine how risky it is to loan
you money. If the issuing company believes you are a poor credit risk, your
application for a credit card will be rejected.
The vast majority of retailers in the U.S. accept both credit and debit cards, and
customers pay the same price irrespective of the payment method they choose. But
merchants pay a fee — called interchange fees — to payment processors like Visa
and MasterCard for every credit or debit card transaction. This is usually flat fee,
plus a percentage of the total transaction. The fees charged for a debit card
are much lower than those charged for a credit card. In the U.S., merchant credit
card processing fees usually total to about a 2% cut.
So merchants prefer it when customers use debit cards. Some merchants, like
Costco, only accept debit cards (with the exception of Costco-issued Amex credit
cards). Other merchants, like Arco gas stations, offer small discounts to customers
who pay via cash or debit cards.
Credit History
It is important to build a good credit history for yourself over time. A good credit
score ensures you pay lower interest on mortgages and car loans, and lower
insurance premiums. Landlords and potential employers also run credit checks.
Debit cards do not affect credit history at all. But credit cards can play an important
role in building credit history. Owning a credit card and paying off credit card bills
in full every month makes a positive impact on your credit history. Conversely,
owning a credit card but falling behind on payments negatively impacts your credit
score.
Rewards and Cash back
For years credit card issuers have been enticing customers to sign up by offering
rewards programs for using the card. The more you spend, the more money card
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issuers make in transaction fees and, possibly, in late payments and interest if you
fall behind in repayment. The most common credit card rewards are airline miles,
"points" that can be redeemed for cash or discounts at certain retailers, and cash
back. A majority of the credit cards that offer rewards also require an annual fee for
the use of the card. One exception is the Capital One Quicksilver card, which offers
1.5% cash back on all purchases and has no annual fee.
Banks have also started offering some rewards for the use of debit cards but these
are not as strong as credit card reward programs because banks get lower fees per
transaction on debit card use. Examples of debit card rewards include fee waiver on
checking accounts if the debit card is used three times in a month, and revolving
discounts at certain merchant locations.
Interest and Fees
Few debit cards charge monthly or annual fees, nor do they charge interest. Some
credit cards charge an annual fee (which may or may not be worth it, depending on
the card's rewards), and all credit cards charge late fees and interest on debts that
are not repaid on time. See also Annual Percentage Rate vs Interest Rate.
The main fee consumers have to be aware of when it comes to debit cards is the
overdraft fee or charge, which may be as steep as $30 or more per overdrawn
transaction. An account becomes overdrawn when you make a charge that exceeds
your available balance. For example, if you have $100 in your account, but spend
$120, you have exceeded your account balance by $20 and may be charged an
overdraft fee by the bank. If you have not opted in to an overdraft coverage
program, your card will simply be declined.
Most banks offer overdraft protection and coverage services for a price. A few
banks, such as Ally, support free overdraft protection by linking up multiple
accounts so an overdrawn account will have access to "backup" funds.
Not all fees are bad, perhaps. For example, debit and credit cards often charge small
fees for transactions carried out overseas, but these fees or rates are
often much lower than currency conversion rates you can get at a traveler's
exchange using physical money. (And some credit cards, in particular, have no
foreign transaction fees at all.) Of the two types of cards, debit cards are more
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likely not to work overseas, so confirming their functionality before traveling with
them is a must.
Churning
In recent years, a personal finance subculture has risen out of credit card rewards —
specifically out of how to take the most extreme advantage of card signup bonuses
and card rewards programs. This process, which usually involves signing up for lots
of different credit cards (and sometimes later closing them), is usually known as
"churning." While not exactly widely known, churning has become popular enough
over time to have an active subredditcommunity and garner the attention
of financial advice sites and the credit card companies themselves.
Some who are especially careful may benefit from their efforts, but long-term
returns may not go as planned, and churning — particularly any and all opening
and closing of accounts — can negatively affect your credit score. Churning can be
an especially bad idea if you are looking to take out a mortgage any time soon.
Payments
Because a debit card is connected to a bank account that it withdraws funds from,
as needed, there are no further payment processes to consider. Credit cards,
however, are loans that must either be repaid in full by a certain date or have a
minimum amount, as set by the card company, paid onto them at the end of each
billing cycle (with the knowledge that interest will be charged on any balance
carried over into the next month — the loan left unpaid).
Most credit cards operate on a 30-day billing cycle. In the past, some credit cards
operated on different billing cycles that made due dates fall on different days of the
month. Following the passage of the Credit CARD Act of 2009, credit card bill due
dates must fall on the same day each month, and no late fees can be charged for
payments that are "missed" due to the effects of holidays or weekends on the
banking system.
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Credit card register

A credit card register is a transaction register used to ensure the increasing balance
owed from using a credit card is enough below the credit limit to deal with
authorization holds and payments not yet received by the bank and to easily look up
past transactions for reconciliation and budgeting.
The register is a personal record of banking transactions used for credit card
purchases as they affect funds in the bank account or the available credit. In addition
to check number and so forth the code column indicates the credit card. The balance
column shows available funds after purchases. When the credit card payment is made
the balance already reflects the funds were spent. In a credit card's entry, the deposit
column shows the available credit and the payment column shows total owed, their
sum being equal to the credit limit.
Each check written, debit card transaction, cash withdrawal, and credit card charge is
entered manually into the paper register daily or several times per week. Credit card
register also refers to one transaction record for each credit card. In this case the
booklets readily enable the location of a card’s current available credit when ten or
more cards are in use.
Features
As well as convenient credit, credit cards offer consumers an easy way to
track expenses, which is necessary for both monitoring personal expenditures and the
tracking of work-related expenses for taxation and reimbursement purposes. Credit
cards are accepted in larger establishments in almost all countries, and are available
with a variety of credit limits, repayment arrangements. Some have added perks (such
as insurance protection, rewards schemes in which points earned by purchasing goods
with the card can be redeemed for further goods and services or cash back).
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Types of Credit Cards
Business credit cards

Business credit cards are specialized credit cards issued in the name of a registered
business, and typically they can only be used for business purposes. Their use has
grown in recent decades. In 1998, for instance, 37% of small businesses reported
using a business credit card; by 2009, this number had grown to 64%.Business credit
cards offer a number of features specific to businesses. They frequently offer special
rewards in areas such as shipping, office supplies, travel, and business technology.
They can be harder to apply for than personal cards, however, and often carry high
credit score requirements. Business credit cards are offered by almost all major card
issuers—like American Express, Visa, and MasterCard in addition to local banks and
credit unions. Charge cards for businesses, however, are currently only offered by
American Express.
Secured credit cards

A secured credit card is a type of credit card secured by a deposit account owned by
the cardholder. Typically, the cardholder must deposit between 100% and 200% of
the total amount of credit desired. Thus if the cardholder puts down $1,000, they will
be given credit in the range of $500–1,000. In some cases, credit card issuers will
offer incentives even on their secured card portfolios. In these cases, the deposit
required may be significantly less than the required credit limit, and can be as low as
10% of the desired credit limit. This deposit is held in a special savings account.
Credit card issuers offer this because they have noticed that delinquencies were
notably reduced when the customer perceives something to lose if the balance is not
repaid.
The cardholder of a secured credit card is still expected to make regular payments, as
with a regular credit card, but should they default on a payment, the card issuer has
the option of recovering the cost of the purchases paid to the merchants out of the
deposit.
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The advantage of the secured card for an individual with negative or no credit history
is that most companies report regularly to the major credit bureaus. This allows
building a positive credit history.
Although the deposit is in the hands of the credit card issuer as security in the event of
default by the consumer, the deposit will not be debited simply for missing one or two
payments. Usually the deposit is only used as an offset when the account is closed,
either at the request of the customer or due to severe delinquency (150 to 180 days).
This means that an account which is less than 150 days delinquent will continue to
accrue interest and fees, and could result in a balance which is much higher than the
actual credit limit on the card. In these cases the total debt may far exceed the original
deposit and the cardholder not only forfeits their deposit but is left with an additional
debt.
Most of these conditions are usually described in a cardholder agreement which the
cardholder signs when their account is opened.
Secured credit cards are an option to allow a person with a poor credit history or no
credit history to have a credit card which might not otherwise be available. They are
often offered as a means of rebuilding one's credit. Fees and service charges for
secured credit cards often exceed those charged for ordinary non-secured credit cards.
For people in certain situations, (for example, after charging off on other credit cards,
or people with a long history of delinquency on various forms of debt), secured cards
are almost always more expensive than unsecured credit cards.
Sometimes a credit card will be secured by the equity in the

borrower's home.
Prepaid cards
A "prepaid credit card" is not a true credit card, since no credit is offered by the card
issuer: the cardholder spends money which has been "stored" via a prior deposit by
the cardholder or someone else, such as a parent or employer. However, it carries a
credit-card brand (such as Discover, Visa, MasterCard, American Express, or JCB)
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and can be used in similar ways just as though it were a credit card Unlike debit cards,
prepaid credit cards generally do not require a PIN. An exception are prepaid credit
cards with an EMV chip. These cards do require a PIN if the payment is processed
via Chip and PIN technology.
After purchasing the card, the cardholder loads the account with any amount of
money, up to the predetermined card limit and then uses the card to make purchases
the same way as a typical credit card. Prepaid cards can be issued to minors (above
13) since there is no credit line involved. The main advantage over secured credit
cards (see above section) is that the cardholder is not required to come up with $500
or more to open an account. With prepaid credit cards purchasers are not charged any
interest but are often charged a purchasing fee plus monthly fees after an arbitrary
time period. Many other fees also usually apply to a prepaid card.
Prepaid credit cards are sometimes marketed to teenagers for shopping online without
having their parents complete the transaction. Teenagers can only use funds that are
available on the card which helps promote financial management to reduce the risk
of debt problems later in life.
Prepaid cards can be used globally. The prepaid card is convenient for payees in
developing countries like Brazil, Russia, India, and China, where international wire
transfers and bank checks are time consuming, complicated and costly.
Because of the many fees that apply to obtaining and using credit-card-branded
prepaid cards, the Financial Consumer Agency of Canada describes them as "an
expensive way to spend your own money" The agency publishes a booklet
entitled Pre-paid Cards which explains the advantages and disadvantages of this type
of prepaid card.
Digital card
A digital card is a digital cloud-hosted virtual representation of any kind of

identification card or payment card, such as a credit card.
Security
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Credit card security relies on the physical security of the plastic card as well as the
privacy of the credit card number. Therefore, whenever a person other than the card
owner has access to the card or its number, security is potentially compromised. Once,
merchants would often accept credit card numbers without additional verification for
mail order purchases. It's now common practice to only ship to confirmed addresses
as a security measure to minimise fraudulent purchases.
Some merchants will accept a credit card number for in-store purchases, whereupon
access to the number allows easy fraud, but many require the card itself to be present,
and require a signature. A lost or stolen card can be cancelled, and if this is done
quickly, will greatly limit the fraud that can take place in this way. European banks
can require a cardholder's security PIN be entered for in-person purchases with the
card.
The PCI DSS is the security standard issued by the PCI SSC (Payment Card Industry
Security Standards Council). This data security standard is used by acquiring banks to
impose cardholder data security measures upon their merchants.
The goal of the credit card companies is not to eliminate fraud, but to "reduce it to
manageable levels". This implies that fraud prevention measures will be used only if
their cost are lower than the potential gains from fraud reduction, whereas high-cost
low-return measures will not be used – as would be expected from organisations
whose goal is profit maximisation.
Internet fraud may be by claiming a chargeback which is not justified ("friendly

fraud"), or carried out by the use of credit card information which can be stolen in
many ways, the simplest being copying information from retailers,
either online or offline. Despite efforts to improve security for remote purchases using
credit cards, security breaches are usually the result of poor practice by merchants.
For example, a website that safely uses SSL to encrypt card data from a client may
then email the data, unencrypted, from the webserver to the merchant; or the merchant
may store unencrypted details in a way that allows them to be accessed over the
Internet or by a rogue employee; unencrypted card details are always a security risk.
Even encryption data may be cracked.
Controlled Payment Numbers (also known as virtual credit cards or disposable credit
cards) are another option for protecting against credit card fraud where presentation of
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a physical card is not required, as in telephone and online purchasing. These are one-
time use numbers that function as a payment card and are linked to the user's real
account, but do not reveal details, and cannot be used for subsequent unauthorised
transactions. They can be valid for a relatively short time, and limited to the actual
amount of the purchase or a limit set by the user. Their use can be limited to one
merchant. If the number given to the merchant is compromised, it will be rejected if
an attempt is made to use it a second time.
A similar system of controls can be used on physical cards. Technology provides the
option for banks to support many other controls too that can be turned on and off and
varied by the credit card owner in real time as circumstances change (i.e., they can
change temporal, numerical, geographical and many other parameters on their
primary and subsidiary cards). Apart from the obvious benefits of such controls: from
a security perspective this means that a customer can have a Chip and PIN card
secured for the real world, and limited for use in the home country. In this eventuality
a thief stealing the details will be prevented from using these overseas in non chip and
pin EMV countries.
Similarly the real card can be restricted from use on-line so that stolen details will be
declined if this tried. Then when card users shop online they can use virtual account
numbers. In both circumstances an alert system can be built in notifying a user that a
fraudulent attempt has been made which breaches their parameters, and can provide
data on this in real time. This is the optimal method of security for credit cards, as it
provides very high levels of security, control and awareness in the real and virtual
world.
Additionally, there are security features present on the physical card itself in order to
prevent counterfeiting. For example, most modern credit cards have a watermark that
will fluoresce under ultraviolet light. Most major credit cards have a hologram. A
Visa card has a letter V superimposed over the regular Visa logo and a MasterCard
has the letters MC across the front of the card. Older Visa cards have a bald eagle or
dove across the front. In the aforementioned cases, the security features are only
visible under ultraviolet light and are invisible in normal light.
The United States Secret Service, Federal Bureau of Investigation, U.S. Immigration
and Customs Enforcement, and U.S. Postal Inspection Service are responsible for
36
prosecuting criminals who engage in credit card fraud in the United States. However,
they do not have the resources to pursue all criminals, and in general they only
prosecute cases exceeding $5,000.
Three improvements to card security have been introduced to the more common credit
card networks, but none has proven to help reduce credit card fraud so far. First, the
cards themselves are being replaced with similar-looking tamper-resistant smart
cards which are intended to make forgery more difficult. The majority of smart card
(IC card) based credit cards comply with the EMV (Europay MasterCard Visa)
standard. Second, an additional 3 or 4 digit Card Security Code (CSC) is now present
on the back of most cards, for use in card not present transactions. Stakeholders at all
levels in electronic payment have recognized the need to develop consistent global
standards for security that account for and integrate both current and emerging
security technologies. They have begun to address these needs through organizations
such as PCI DSS and the Secure POS Vendor Alliance.
OVERVIEW OF RUPAY CREDIT CARD
Focusing on the need to integrate all retail payment systems under one umbrella, The
Reserve Bank of India set up the Board for Payment and Settlement Systems in 2005,
which eventually led to the formation of National Payments Corporation of India
(NPCI). NPCI has been endorsed by RBI and currently has ten promoter banks
namely, State Bank of India, Bank of India, Punjab National Bank, Canara Bank,
37
Bank of Baroda, Union bank of India, ICICI Bank, HSBC, HDFC Bank, and
Citibank.
What is a RuPay Card?

Representing a miniature India in itself, the name RuPay, has been coined from two
separate words namely, “Ru” from the Indian Rupee and “Pay” from payments. The
RuPay card was introduced by NPCI in accordance to RBI’s vision of setting up a
domestic payment system in India, which will allow Indian financial institutions to
facilitate electronic payments across the country. With major competitors like
MasterCard and Visa, RuPay has been trying to establish a strong foothold in the
international market and is accepted on the Discover payment network owing to
NPCI’s collaboration with Discover Financial Services (DFS).
How does a RuPay Card work?

Any RuPay card offers customers enhanced security in the form of an embedded
EMV chip enabling high value transactions to be done with complete protection.
Additionally, RuPay cards also carry an inbuilt microprocessor circuit containing
information about the card owner. RuPay cards can be used at over 145, 270 ATMs
on the National Financial Switch network and purchases can be made at over 875,000
Point of Sale terminals across India. Customers can also use RuPay cards for online
transactions and purchases at over 10,000 web portals. NPCI has formed tie-ups with
29 major banks to enable PIN based PoS transactions via RuPay cards across various
merchant outlets in India.
Benefits of using a RuPay Card:

RuPay cards are still relatively new in the Indian market, but offer various benefits to
card holders with superior customer service and higher levels of acceptance. NPCI
offers RuPay cards at low processing fees along with instant SMS alerts for every
transaction made by a customer.
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1) RuPay cards help save cost:
Being a domestic payment system, all transactions will happen inside India leading to
lower clearing and settlement cost for each and every transaction. Banks will benefit
immensely from this as transaction costs will become very affordable, directly leading
to increase in usage of RuPay cards across the country.
2) Customised for Indian consumers:
Made in India, for Indians! RuPay cards will be designed and manufactured to cater to
the needs of Indians with maximum flexibility to customise the product and services
offered.
3) RuPay transactions are secure:
Since all the card transactions take place within India, customers can rest assured that
their personal information and data will remain inside the country, without the
intervention of foreign organisations.
4) RuPay cards enables banks to tap into new consumer segments:
Financial institutions in India can use RuPay cards to introduce the electronic way of
life to certain sections in India, where banking services are still unavailable. Rural
areas will benefit from RuPay products as they are indigenous and also work to be
very economical for banks planning to offer them to unexplored customer segments.
5) Products and Payment channels brought closer:
RuPay cards aim to connect various payment channels and products in India.
Customers can access services like ATM services, banking transactions, e-banking
services, requests for credit instruments, etc. using RuPay cards across different
banking platforms.
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6) Online payments with RuPay are quick and safe:
E-commerce transactions using RuPay cards can be done without any hassles and in a
very secure manner. RuPay cards carry a two-tier authentication process as mandated
by RBI, and offer protection against phishing and data logging. The online interface is
also very user-friendly and processes card transactions at a very fast rate.
Launch of RuPay Credit Cards:

With RuPay debit cards having a successful run in the Indian market, NPCI has
decided to launch RuPay credit cards in 2016. Anticipated to improve RuPay
penetration in India, the organisation is of the thought that the credit cards will help
tap into new segments across India. NPCI expects that the new RuPay credit card will
rise to be a tough competitor for Visa or MasterCard services, which already have a
well-established customer base in India. Currently, 13% of all transactions done at
PoS terminals, ATMs and e-commerce websites are done using RuPay cards, with a
steady rise in the number of transactions, every month.
credit cards will also be launched in the global arena with tie-ups with foreign
institutions under the name, RuPay International. NPCI recently announced that
financial institutions like JCB from Japan have tied up with RuPay to enable overseas
transactions and China Union Pay is now in talks with the organisation to establish a
collaboration soon. RuPay will also be contributing to the e-banking segment by
providing various platforms for mobile banking and internet banking and will also
facilitate the growth of e-retail payments in India.
RuPay Credit Cards FAQs:

• Does RuPay offer cards for agriculturists and farmers?
Yes, RuPay has a Kisan card exclusively for farmers, enabling them to perform
ATM and PoS transactions.
• Does RuPay charge any quarterly fee or joining fees for card holders in India?
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Unlike other payment channels, RuPay does not have a mandatory quarterly fee or
joining fee to be paid by customers.
• What is the reach of a RuPay card with regards to the inclusion of member
banks?
RuPay has partnership with private sector banks, public banks and rural as well co-
operative banks. This is a huge advantage for RuPay customers as the reach of a
RuPay card is quite high with tie-ups even with smaller banks across India.
• Can RuPay cards be used for international transactions?

Yes, RuPay cards can be used for cashless transactions anywhere across the globe.
Zero Percent Credit Cards

A 0% introductory APR credit card could help you save on interest on a big purchase.
Since these credit cards charge no interest for an introductory period, a 0%
introductory APR card could be a great way to pay down your debt without also
paying on interest. In addition to the introductory period, be mindful of the ongoing
APR and any balance transfer fees before choosing a card. These are some of the most
popular 0% credit cards from Credit Karma's partners.
If you have credit card debt or plan to make a big purchase, a low-interest credit card
can be a lifesaver. Many offer more than a year of 0% APR to pay down your debts,
or a low ongoing interest rate for a longer-term debt reduction strategy. These cards
are the best in the business, from waived fees to rewards and more. Transfer your
balance, and you’ll get some room to breathe — and a chance to get out of debt.
Benefits of the Chase Slate:
• Using the $0 introductory balance-transfer fee within the first 60 days makes it
a lot easier to reduce debt. Most other balance-transfer cards charge a fee of
3% to 5% when you transfer your balance, making that move very expensive.
41
No other card offers both a fee-free balance transfer and a long 0% APR
period.
• The relatively long 0% APR period on both purchases and balance transfers
makes it easier to pay off big expenses or eliminate debt.
• There’s no penalty APR, so paying late won’t raise your interest rate, but it
can hurt your credit score.
• You can access your FICO score monthly for free.
• The annual fee is $0.
Drawbacks of the Chase Slate:
• The Chase Slate offers no rewards, so it’s not the best card for everyday
purchases.
• You can’t transfer balances from one Chase card to another, so you’ll only be
able to take advantage of Chase Slate’s great balance transfer offer if you’re
carrying debt on a card from another issuer.
• You can’t transfer balances of more than $15,000.
• The 3% foreign-transaction fee, while not uncommon, makes this card less
than ideal for international travel.
Bottom line:
If you’ve got a significant credit card balance and want to get serious about paying it
off, it’s pretty hard to beat the Chase Slate. The introductory $0 balance transfer fee
plus the long 0% APR period make this card a powerful weapon against deb
Purchase credit cards

A purchase credit card could provide a useful solution - allowing you to buy now and
pay later - if you are planning a significant purchase, such as a dream holiday or an
upgrade on the family car.
42
What is a 0% purchase credit card?

A 0% purchase credit card allows you to buy expensive items upfront, while paying
off the amount you’ve spent over a set and stated period without any interest. With
some credit cards offering 0% on purchases for up to two years or even longer, you
can essentially borrow money for free as long as you clear the balance before the
interest-free period ends.
This means, although you have to pay back whatever you have spent while using the
credit card, you won’t pay any extra in the form of interest charges.
Used properly, a purchase credit card is the cheapest way to borrow, allowing you to
spread the cost of big ticket items over long periods, at no extra cost. The key lies in
paying back what you owe before interest charges become applicable.
What are the advantages of a 0% purchase card?
Manageable monthly payments:

A purchase credit card allows you to pay off expensive items over time, which can be
a great option if you can’t afford the cost upfront or find it more viable to pay off your
purchases over a longer period.
Protection on your purchases:

Unlike cash or debit card purchases, when you pay using your credit card you have a
level of protection should your purchases (costing at least £100) be faulty or not arrive
on time. Under consumer protection rules, you are able to claim back up to £30,000
(£60,260 in some cases) if your purchases aren’t as advertised or don’t arrive. For
example, if the airline you booked your flights with went bust, you’d be able to get
your money back – even if you put just the deposit on the card.
Are there any disadvantages with a 0% purchase card?
Pay on time or pay interest on your balance:

If you don’t clear your balance in full by the end of each month, or, if you have a 0%
purchase card, by the time the interest-free period ends, you’ll be charged interest.
43
The typical annual percentage rate (APR) on purchase credit cards is around 18%, so
it can be a very expensive way to borrow if you let a balance languish on a card.
You’ll need a good credit score for the most competitive cards:
The most attractive purchase credit cards, such as those offering the longest interest-
free periods, are reserved for people with the best credit scores. Those with low credit
scores or limited credit histories will struggle to be approved from some cards.
Money Super Market’s Smart Search tool will give you an indication of whether you
are likely to be accepted when applying for a credit card. It won’t leave a mark on
your credit history and ranks the cards you are most likely to be accepted for. Smart
Search won’t provide you with a guarantee that you’ll be accepted when you apply.
Balance Transfer Credit Cards

Picking a balance transfer credit card can be confusing. But this latest listing of card
offers, along with our Transfer Savings Estimator, shows how much you can save.
Whether you're consolidating other credit card balances, or simply moving one
balance to a new card, the Savings Estimator factors in any introductory rate, how
long you'll keep the balance and any balance transfer fee. So check out this list of
offers from our partners and find the one that's best for you
44
CHAPTER 4
DEBIT CARD VS. CREDIT CARD
Debit and credit cards offer more than a way to access money without having to
carry around cash or a bulky checkbook. Debit cards are like digitized versions
of checkbooks; they are linked to your bank account (usually a checking
account), and money is debited (withdrawn) from the account as soon as the
transaction occurs. Credit cards are different; they offer a line of credit (i.e., a
loan) that is interest-free if the monthly credit card bill is paid on time. Instead of
being connected to a personal bank account, a credit card is connected to the
bank or financial institution that issued the card. So when you use a credit card,
the issuer pays the merchant and you go into debt to the card issuer.
Most debit cards are free with a checking account at a bank or credit union. They
can also be used to conveniently withdraw cash from ATMs. Credit cards have
the advantage of rewards programs but such cards often require an annual fee to
use. Financial responsibility is a big factor in credit card use; it is easy to
overspend and then get buried in overwhelming credit card debt at a very high
interest rates.
This comparison provides a detailed overview of what debit and credit cards are,
their types, associated fees, and pros and cons.
45
definitions of both debit and credit cards
It's easier to figure out which card to use — credit or debit — when you know what
each card actually does. Here's a brief explanation of each:
• Credit card – Think of a credit card as a line of credit issued by a lender, allowing
you to take on debt. Once you accumulate that debt, a credit card allows you to pay it
off all at once or over an extended period of time.
• Debit card – A debit card IS NOT a credit card, even though they look just the same.
In fact, when you use your debit card, it's exactly like writing a personal check. Most
merchants accept debit cards, and they will ask you to enter a Personal Identification
Number (or "PIN"), known only by you and your bank, so that the money can be
taken directly out of your checking account.
What are the pluses and minuses of using credit cards and debit
cards?
Before you determine your best payment method, remember this: Credit card fraud
isn't new. And even though debit cards are a reasonably new invention, debit card
fraud is fast becoming just as prevalent.
Keeping overall fraud concerns top of mind, here's a brief look at some of the pros
and cons of credit and debit cards:
Credit Card Pros and Cons
• No PIN required –
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(PRO) If you don't have the best memory, for example, credit cards don't require a
PIN. (CON) This can also be a negative, because the PIN does provide you with a
financial safeguard; if you get ripped off, anyone can use your credit card to make
purchases.
• Separate from your other accounts –

(PRO) When you use your credit card, the money you spend actually comes from the
lender — not your personal account.
• Freedom from liability –

(PRO) If there's a problem with your purchase (say, if the item is broken or doesn't
work properly after you buy it), your credit card company will cover you until that
problem gets resolved.
Debit Cards Pros and Cons
• PIN protection –
(PRO) If your debit card is stolen, as long as your PIN isn't stolen with it, nobody else
can use your debit card to make purchases. (Reminder: Keep your PIN separate from
your debit card at all times.)
• Part of your overall accounts –

(CON) When you use your debit card, remember that it's part of your personal
accounts. (Note: A lot of banks do provide protection for both debit and credit cards,
and some can be used as both. Be sure to check with your bank for these details). If
you mismanage your account, it could lead to bounced checks and overdrafts that may
affect your overall credit history.
• Less chance of excessive credit card debt –

(PRO) If you keep your banking records organized and carefully manage your
checking account, you can avoid amassing too much credit card debt. And
with interest fees on credit cards often an issue, keeping credit card debt down is
always a plus.
47
• Liability issues –
(CON) If your debit card is lost or stolen and a thief is able to use it (remember, some
banks view debit cards and credit cards the same; your debit card, at times, can be
used like a credit card), you could be liable for all the costs.
It's important to remember that while debit and credit cards may be very different to
you, merchants view them very similarly. A lot of people will choose "credit" instead
of "debit" when they get to the point of purchase, based primarily on how much they
think they have in their checking account and whether or not their bank charges extra
fees for simply having the debit card option. So while a debit card can be a convenient
option — especially because it helps you cut down on check writing, paper clutter and
the like — you do have to consider the risks of using it
Comparison chart
Credit Card versus Debit Card comparison chart

Credit Card Debit Card
About Credit cards are lines of credit. Any time you use a debit card to buy
When you use a credit card, the something, money is deducted from
issuer puts money toward the your account. With a debit card, you
transaction. This is a loan you arecan really only spend the money you
expected to pay back in fullhave available to you.
(usually within 30 days), unless
you want to be charged interest.
Connected Not required to be connected to aChecking or Savings Account

To checking account.
Monthly Yes No
Bills
Application Somewhat difficult, depending on Easy, with basically no barrier to
48
Process one's credit score and otherreceiving a debit card.

details.
Spending The credit limit set by the credit However much is in the bank
Limit issuer. Limits increase or stay the account connected to the card.
same over time as a borrower's
creditworthiness changes.
Interest If a credit card bill is not paid inNo interest is charged because no
Charged full, interest is charged on money is borrowed.
outstanding balance. The interest
rate is usually very high.
Security Credit cards in the U.S. are not A PIN makes them secure so long as
very secure in and of themselvesno one steals the card number and
because many still use dated card PIN, and as long as you don't lose
security technology. However,the card itself. If the card/info is
consumers are not held liable for stolen, debit cards are very insecure.
this poor security.
Fraud Low. Rarely held liable for High. If someone steals your card
Liability fraudulent activity. If you are, you and makes purchases, that money is
are only held liable for a removed from your bank account.
maximum of $50. Investigating this damage takes time.
The longer you wait to report the
fraud, the more likely you will be
held liable for your own losses.
Credit Responsible credit card usage and Does not affect credit history.
History payment can improve one's credit
rating. Credit cards typically
report account activity to at least
one of the three major credit
bureaus on a monthly basis.
Overdraw Low. Some credit card companies High "overdraft" fees. Possible to
Fees allow to overdraw amount overoverdraw amount over the account
the maximum credit line with alimit.
49
fee.
PIN In the U.S., this is uncommon, butUsually

PINs are being phased in.
What are the differences between debit cards and credit cards?
Debit cards and credit cards work in similar ways. Both carry the logo of a
major credit card company, such as Visa or MasterCard, and can be swiped at
retailers to purchase goods and services. The key difference between the two cards
is where the money is drawn from when a purchase is made. When a consumer uses
a debit card, the money comes directly from his checking account. When he uses a
credit card, the purchase is charged to a line of credit for which he is billed later.
Consider two customers who each purchase a television from a local electronics store
at a price of $300. One uses a debit card, and the other uses a credit card. The debit
card customer swipes his card, and his bank immediately places a $300 hold on his
account, effectively earmarking that money for the television purchase and preventing
him from spending it on something else. Over the next one to three days, the
electronics store sends the transaction details to the bank, which electronically
transfers the funds to the store.
The other customer uses a traditional credit card. When he swipes it, the credit card
company automatically adds the purchase price to his outstanding balance. With most
credit card companies, the customer has 30 days to pay before interest is charged on
the outstanding balance. Interest rates on credit cards are notoriously high. Savvy
consumers avoid paying credit card interest in two ways. One, they pay their balance
in full each month and never allow it to carry over beyond the 30-day mark. Two,
they use a debit card instead of a credit card and only spend money they have in their
accounts.
10 Reasons Why Credit Trumps Debit

1. Signup Bonuses
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The standard debit card offers zero rewards or very small rewards. Many credit cards,
however, offer significant rewards when used responsibly. For example, applicants
with good credit can get approved for credit cards that offer signup bonuses worth
anywhere from $50 to $250 (and sometimes even more). Other cards offer up a large
number of points that can be redeemed for rewards like gift cards or air trave
2. Cash Back
If you sign up for the right credit card, you can earn anywhere from 1-5% back on
your purchases.
3. Investment Rewards
Some cards, like the Fidelity Investment Rewards card, offer a higher rate of cash
back; in exchange you must deposit your cash back directly into an investment
account.
4. Frequent-Flyer Miles
It seems like every airline these days has at least one credit card available.
Cardholders rack up miles at a rate of one mile per dollar spent, or sometimes one
mile per two dollars spent. The price of the plane ticket you ultimately end up
redeeming your miles for will determine how valuable this credit card reward is, but
many frequent flyer cards are made immensely more valuable by their mileage signup
bonuses - these are often enough to put you 50-100% of the way toward a free flight
within a month or two.
5. Points
Many card rewards work on a point system where you earn up to five points per dollar
spent. When you reach a certain point threshold, you can redeem your points for gift
cards at some stores. You can also use the gift cards as gifts, making holiday and
birthday shopping simpler and less expensive.
6. Safety
Paying with a credit card makes it easier to avoid losses from fraud. When
your debit card is used fraudulently, the money is missing from your account
instantly. Legitimate payments for which you've scheduled online payments or mailed
checks may bounce, triggering insufficient funds fees and making your creditors
unhappy. Late payments can also lower yourcredit score. It can take a while for the
51
fraudulent transactions to be reversed and the money restored to your account while
the bank investigates.By contrast, when your credit card is used fraudulently, you
aren't out any money - you just notify your credit card company of the fraud and don't
pay for the transactions you didn't make while the credit card company resolves the
matter.
7. Grace Period
When you make a debit card purchase, your money is gone instantly. When you make
a credit card purchase, your money remains in your checking account until a couple of
weeks later when you pay your credit card bill. Hanging on to your money for this
extra time can be helpful in two ways. First, if you pay your credit card from a high-
interest checking account and earn interest on your money during the grace period, the
extra interest will eventually add up to a meaningful amount. Second, when you
always pay with a credit card, you don't have to watch your bank account balance like
crazy to make sure you stay in the black.
8.Insurance
Most credit cards automatically come with a plethora of consumer protections that
people don't even realize they have, such as rental car insurance, travel insurance and
product warranties that may exceed the manufacturer's warranty.
9.Universal Acceptance
Certain purchases are difficult to make with a debit card. When you want to rent a car
or stay in a hotel room, you'll almost certainly have an easier time if you have a credit
card. Rental car companies and hotels want customers to pay with credit cards
because it can be easier to charge customers for any damage they cause to a room or a
car this way. So if you want to pay for one of these items with a debit card, the
company may insist on putting a hold of several hundred dollars on your account.
Also, when you're traveling in a foreign country, merchants won't always accept your
debit card as payment, even when it has a major bank logo on it.
10. Building Credit

If you have no credit or are trying to improve your credit score, using a credit card
responsibly will help your credit score because credit card companies will report your
payment activity to the credit bureaus. Debit card use doesn't appear anywhere on
52
your credit report, however, so it can't help you build or improve your credit
Security and Card Theft

How much of that fraudulent activity are you liable for? For credit cards, it's only ever
$50, at most. For debit cards, it depends on when you report the fraud.
The U.S. lags behind other nations when it comes to credit card security. [3]Debit
cards, which make use of a PIN, are more secure cards in and of themselves.
However, credit cards are much more secure for consumers in a practical sense
when fraud occurs.
If someone steals your debit card information, the thief has direct and immediate
access to the funds available in the bank account connected to your card. As it takes
banks time to investigate fraud, you will have little immediate recourse. Worse, if
you do not notice and report the fraud soon enough (within two days), you may be
on the hook for $500 or more of your own loss. This can make paying bills that you
would have otherwise had the money for difficult, if not impossible.
In contrast, if your credit card information is stolen, the thief takes out money from
your credit issuer. This is money that you will very rarely be held responsible for if
you make a concerted effort to report suspicious account activity as soon as you are
aware of it. Under federal consumer protection law, you can never be held liable for
more than $50 of fraudulent activity on a credit card.
Risk of Overspending
With debit cards, you can usually ask your bank to offer overdraft protection or
reject transactions when there are insufficient funds in the account. There is some
risk of overdraft fees but you generally cannot spend a lot more money than you
have if you use a debit card.
On the other hand, credit card debt can become a nightmare very quickly if you fail
to pay your bills on time. Most monthly credit card bills list two amounts —
minimum payment due and monthly balance. If you only make the minimum
payments that are due, interest starts to accrue on the remaining balance at
53
staggeringly high rates of 12 to 24%. And since this interest is compounded, it is

very easy to get mired in a lot of debt. Financial advisors are unanimous in
recommending that consumers repay their credit card debt first, before other loans
like student loans or home equity loans.
When You Shouldn't Use a Credit Card Instead of a Debit Card

Despite the advantages that paying with a credit card has over paying with a debit
card, for some people it's still better to use debit. Using a credit card may not be right
for you under the following circumstances:
• You can't pay your credit card balance in full and on time.
If this tends to happen to you, stick with cash to avoid racking up fees.
• You tend to spend more than you can afford.

Paying with debit will limit you to spending money you've already earned.
• You can only get a credit card with a very low credit limit and you have a hard
time staying under the balance.
The fees for exceeding your credit limit are costly, and doing this can also put
a dent in your credit score.
54
Chapter 5
DEBIT CARD OVERTAKE CREDIT IN INDIA
For the credit averse Indian, it's all about spending money that he already has and not
paying interest for credit taken. And that's becoming increasingly apparent in the
growth of debit cards in the country.
In the four years since the debit card was first launched in Bangalore by Citibank,
issuance has been growing at an annual rate of 150 per cent. The debit card base,
which is already at 4 million, is expected to surpass credit cards by December this
year.
The country's credit card base, which is at 6 million, has been growing at an annual
rate of 25-30 per cent.
The debit card base is going to see growth zoom when State Bank of India converts its
one million automated teller machine cards into debit cards in one shot in September
this year. After that, the bank will issue debit cards at the rate of 100,000 a month to
other savings account holders.
55
Accept Debit/Credit Card Payments Easily In India with Insta pay
Have you find the process of accepting payment painful? As an entrepreneur without
an E-commerce company or a blogger selling eBook, Workshop, online course or
anything else, how challenging the process of taking the payment
Of course, there are payment gateways that you can use, but let’s be real: It’s a
cumbersome process. For long my process of accepting a direct payment online is by
sharing my bank details & the buyer usually transfers it via net banking or direct
deposit at the bank. Let’s not ignore the fact that sharing bank detail is not a smart
move, as it exposes you to a lot of security risks.
This is one reason I always recommended you to use PayPal for online purchases, as
it lowers the risk of fraud with your credit card. Well, we all know now PayPal is not
a viable option for transferring money within India, and this is where this online
solution name InstaPay come into the picture.
Types of Credit and Debit Cards That Can Be Used
Credit Cards:
The following credit cards issued in India can be used for payment:
• Visa
• MasterCard
• American Express
Debit Cards:
The following debit cards can be used for payment:
• Visa
• MasterCard
56
• RuPay
• Maestro debit cards issued by Citibank and State Bank of India
Note: If your card is issued out of India, we accept:
• All international personal credit and debit cards (Visa, MasterCard and American
Express) issued outside India.
• All Commercial MasterCard cards issued in South Asia, Middle East and Africa
region; and all Visa commercial cards issued in the Asia-Pacific region.
• Payment may be split between one of the accepted credit or debit cards and an
Amazon Gift Card, but payment can't be split among multiple cards.
• We don't accept EBT, food stamps, or any other payment method not listed for
grocery purchases.
• Payment methods associated with a Flexible Spending Account (FSA) or other
health benefit accounts aren't accepted.
Was this information helpful
Visa's debit card transactions overtake credit cards

In an economy that is encouraging more thrifty behaviour, consumers are turning to
their debit cards instead of their credit cards at record levels, says Visa.
According to an April 29 report from the credit card network, the total dollar volume
of purchases made with Visa debit cards at the end of 2008 was larger than the
amount spent on credit card purchases -- the first time debit purchases surpassed
credit. Visa's 2008 fourth-quarter debit card transactions made up more than 50
percent of the company's volume, compared to 40 percent during the same period in
2003.
"The reality is that the vast majority of consumers want to pay as they go," said
Stacey Pinkerd in a press release. Pinkerd oversees Visa's debit-card business.
Visa's growth in its debit card segment far exceeded analyst's predictions. At U.S.
Bancorp, debit card transactions in the first quarter rose more than 2 percent from the
same period in 2008, while credit card purchases declined more than 4 percent.
57
MasterCard also witnessed a major shift toward debit cards, reporting its debit card
transactions rose 13 percent last year while credit card purchases dropped more than 2
percent.
Payment cards have long been the preferred purchase method for American
consumers, with credit and debit card purchases for retail goods and services
outmatching cash and check payments since 2003. Debit cards have slowly
approached the levels of credit card use in the 21st century, according to studies by
the Federal Reserve.
The switch in payment cards is reflected in debt levels and types of accounts
nationwide, with the U.S. government reporting in March that personal saving rates
rose to 5 percent in January, the highest in 14 years. Meanwhile, revolving debt from
credit cards plummeted more than 9 percent, said the Federal Reserve.
58
ANNEXURE
A. QUESTIONNAIRE
1) Is credit rating important?
YES NO
2) Can I use my security bank debit card for purchase without interest paying
charges?
YES NO
3) Are my purchases protected if I pay by credit card?
YES NO
4) Can I report a lost or stolen debit card?
YES NO
5) Can I customize the design to my debit card?
YES NO
6) Are there any downsides to using a credit card?
YES NO
7) Can I use my debit card overseas?
YES NO
8) It does in your bank deposit overtaking credit card?
YES NO
9) I have heard a chip card can be read by someone just walking by is that true?
YES NO
10) Will I need to update my recurring payments or stored card credentials at
merchants or on websites where I use card for payment?
YES NO
59
B. Conclusion
It is not easy for us to carry a huge amount of cash or a cheque book every time with
us, so credit card and debit card are good facilities that helps to overcome such a
problem. If you have enough cash balance in your bank account, then you can choose
the debit card, but if you don’t have a bank account and your credit ratings are quite
good, then you can choose the credit card. It’s up to you, decide yourself? Which card
suits you more, according to your Requirements?
60
C. BIBLOGRAPHY
http://www.asiatradehub.com/india/banks.asp ·
http://www.debitcardprocessing.org/advantagesanddisadvantagesofdebitcards.html ·
http://www.streetdirectory.com/travel_guide/151487/credit_cards/advantages_and_dis
advantages_of_credit_cards.html · http://www.allbankingsolutions.comTop-
Topicsdep1.shtml ·
http://www.digit.in/forum/internet-www/161111-must-read-information-regarding-
indian-debit-cards.html ·
http://www.diffen.com/difference/Credit_Card_vs_Debit_Card ·
http://www.investopedia.com/terms/d/debitcard.asp
61

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DEBIT CARD OVERTAKING CREDIT CARD IN INDIA

pays out on customer's order."

1.2 Characteristics / Features of a Bank

2. Individual / Firm / Company

A bank may be a person, firm or a company. A banking company means a company

the business of banking.

7. Profit and Service Orientation A bank is a profit seeking institution having

service oriented approach.

8. Ever increasing Functions Banking is an evolutionary concept. There is continuous

10. Banking Business A bank's main activity should be to do business of banking

1. It must have a paid up capital of at least Rs. 5 lakhs.

3. It must be a Corporation (not a partnership or a single ownership firm). Non-

1.3 Private Sector Banks

WHAT IS DEBIT CARD

What is Debit Card?

How to get a debit card

2.1 Advantage and disadvantage of Debit card

The Advantages of Debit Cards

2. It’ Cash card too

3. Your Pin Protects You

4. Anyone Can Have One

5. Strong Budgeting Tool

The Disadvantages of Debit Cards

3. Instant Money Means Instant Risk

2.2 Types of Debit Cards in India

• Visa Electron Debit Cards

• MasterCard Debit Cards

• Contactless Debit Cards

• Repay Debit Cards

• Maestro Debit Card

Top Banks providing Debit Cards in India

• State Bank of India Debit Card

• HDFC Bank Debit Card

• ICICI Bank Debit Card

• Axis Bank Debit Card

• PNB Debit Card

• Canada Bank Debit Card

• Bank of India Debit Card

• Bank of Baroda Debit Card

• Union Bank of India Debit Card

• Syndicate Bank Debit Card

• HSBC Debit Card

• Inducing Bank Debit Card

• Citibank Debit Card

• Standard Chartered Debit Card

• YES Bank Debit Card

Types of debit card systems

An example of the front of a typical debit card:

• Issuing bank logo

• Card brand logo

An example of the reverse side of a typical debit card:

• Signature strip panel

• Card Security Code

in Canada, Carte Bleue in France, EC electronic cash (formerly Eurocheque) in

Online debit system

Offline debit system

Electronic purse card system

2.3 Prepaid debit card

As of 2013, several city governments (including Oakland,

In July 2013, the Association of Government Accountants released a report on

Issue with deferred posting of offline debit

Internet purchases can be authenticated by the consumer entering their

How secure are debit cards?