Types of Cards In Banking System: Dear Banking Aspirants! Here we have created exclusive content regarding the Types of Card In Banking System. As we all know there are various types of cards functioning in the banking sector. Banking cards offer consumers more security, convenience, and control than any other payment method. There are a wide variety of banking card types available such as credit, debit, prepaid more. These types of cards in banking system offer enormous flexibility, as well. So these types of cards in banking payments becoming an essential part of the payment system offered by banking institutions. These types of cards in banking offer hassle-free and cash-free options to make payments and withdraw money as per the needs of the cardholder. These types of banking cards give people the power to purchase items in stores, on the Internet, through mail-order catalogues, and over the telephone. They save both customer’s and merchants’ time and money, and thus enable them for ease of transaction. So in this article, we have provided complete information about the types of cards in banking system and the explanations of types of banking cards for your reference. So those who are in search of types of cards in banking system, types of cards on banking, types of plastic cards in banking, types of credit cards in banking. types of cards in Hdfc bank, types of cards in SBI Bank, types of cards in ICICI Bank, etc. can utilize this article. Now, let’s move on to this article to learn the complete details of the types of cards in banking system.
Types of Cards In Banking System
Types of cards in banking: Here we have added complete information regarding the types of cards used in banking system. Nowadays we are using various types of cards in banking for our convenience and ease of use. Because banking cards offer consumers more security, convenience, and control than any other payment method. These various types of cards in banking give people the power to purchase items in stores, on the Internet, through mail-order catalogues, and over the telephone. So now let’s see some of the types of cards in banking system and their explanations which are given below:
- Debit Card
- Credit Card
- Forex Card
- Prepaid Card
- Electronic Cards
- Virtual Cards
| Types of Cards Used in Banking System |
|
| Debit Card | We can make payments from a linked account |
| Credit Card | It is used to borrow money and make payments |
| Forex Card | Forex card is to hold foreign currency during international travels |
| Prepaid Cards | In the prepaid card, we can load the money in advance and then make the transaction |
| Electronic Cards | It could be considered as debit cards issued in specific overdraft accounts that are in the nature of personal loans without any specific end-use restrictions. Banks have been permitted to issue electronic cards to persons having overdraft accounts so as to enable domestic digital transactions in such accounts. |
| Virtual Cards | Virtual cards are a non-physical payment instrument replacing physical cards and cash |
Types of Cards In Banking System – Debit Cards
- A debit card is a payment card that deducts money directly from your checking account. Also called “check cards” or “bank cards,” debit cards can be used to buy goods or services or to get cash from an ATM.
- Debit cards can help you reduce the need to carry cash, although using these cards can sometimes entail fees.
- It should be noted that you’re not borrowing money using a debit card, you are using the money deposited in the bank account linked to the card.
- A debit card is a card that can be used to withdraw money up to the limit presented in the customer’s bank account.
- Debit card purchases may require a personal identification number (PIN), but some purchases can be made without one.
- You may be charged an ATM transaction fee if you use your debit card to withdraw cash from an ATM that’s not affiliated with your bank.
Types of Cards In Banking System – Credit Cards
- A credit card is a thin rectangular piece of plastic or metal issued by a bank or financial services company that allows cardholders to borrow funds with which to pay for goods and services with merchants that accept cards for payment.
- Credit cards impose the condition that cardholders pay back the borrowed money, plus any applicable interest, as well as any additional agreed-upon charges, either in full by the billing date or over time.
- Companies issuing credit cards also set a minimum repayment amount for the amount borrowed.
- Credit cards charge interest on the money spent.
- Credit cards may be issued by stores, banks, or other financial institutions and often offer perks like cash back, discounts, or reward miles.
- Secured credit cards and debit cards offer options for those with little or bad credit.
Types of Cards In Banking System – Forex Card
- Forex Cards stands for Foreign Exchange Cards and are used for international travel to hold foreign currency.
- A Forex card is a card which is one of the most effective ways to carry money when you are visiting another country.
- A Forex card carries your foreign currency and is accepted almost everywhere you go.
- Forex cards are a safe solution to carrying around cash or incurring heavy charges when using a credit card or debit card while abroad. In order to suit the needs of every type of traveler, there are various types of forex cards offered.
- The Two Main Classifications Of The Types Of Forex Cards Available Are Mentioned Below:
- Single currency forex card: As the name suggests, the single currency forex card can be preloaded with one particular currency. The card can be reloaded as and when required.
- Multi-currency forex card: This card can be preloaded with multiple currencies, depending on the card chosen. Banks, financial institutions, and travel agencies often have a choice of cards that applicants can choose from based on the currencies that can be loaded on the cards.
Types of Cards In Banking System – Prepaid cards
- In the prepaid cards, you can load the amount in advance and then use the money to make transactions, they are not linked to any bank accounts. The most common example is prepaid gift cards.
- You can reload the card online or at an ATM, a participating store, or another physical location when the balance is used up.
- Prepaid debit cards are issued by banks and they’re branded by the major credit card companies, including Visa, MasterCard, Discover, and American Express.
- A prepaid debit card can be a useful alternative to cash.
- Prepaid debit cards are an option for people who don’t have a credit card or access to a regular debit card that’s connected to a bank account.
- There are many fees associated with prepaid debit cards so it’s important to shop around for the best deal.
Types of Cards In Banking System – Electronic Cards
- E-card is an electronic postcard or greeting card, with the primary difference being that it is created using digital media instead of paper or other traditional materials.
- E-cards are made available in many different ways, usually on various Internet sites. They can be sent to a recipient virtually, usually via e-mail or an instant messaging service.
- Banks have been permitted to issue electronic cards to natural persons having overdraft accounts so as to enable domestic digital transactions in such accounts.
Types of Cards In Banking System – Virtual Cards
- Virtual cards are designed to make online purchases, avoiding the use of cash or physical cards
- A virtual card is a payment method that is virtual rather than physical.
- It functions similarly to a traditional credit card but takes the form of a single-use 16-digit number and three-digit CVV code generated online, instead of a plastic or metal card that is received through the post.
- You can get a virtual card from almost any card issuer (from traditional banks to neo-banks and some money transfer services).
- Some virtual cards are reusable, but some issuers offer disposable ones, which can only be used once.
Details Mentioned on Different Types of Cards In Banking
Here we have added the details mentioned on different types of cards in banking sytem. The details can be vary from one another. Hee you can understand all the information and the meaning of various details mentioned in different types of cards in the banking system. They are,
| Details Mentioned on Different Types of Cards In Banking | |
| Particulars | Definition |
| Bank Name | Who has issued the card |
| Card number | Normally they are 16 digits for online transactions. But they can vary from 14 to 19 digits. |
| Card holders name | Name of the person in whose name card is issued |
| Smart chips | Metal chip processor to avoid cloning |
| Expiration date | Month and year is given till which it is valid |
| Payment network logo | There are five payment networks current active in India- Visa, Mastercard, RuPay, American Express, and Discover. |
| Magnetic stripe | The black stripe contains all the information on the card |
| Hologram | Additional security feature as its difficult to fake holograms. |
| Security code | A CVV number is the acronym for Card Verification Value. It is required to complete transactions using cards, but along with that, it also provides added security against scams. it can be 3 or 4 digits. For Visa, Mastercard, Discover cards, and Rupay cards, you will find that the CVV is a three-digit number. American Express cards have four-digit CVV numbers. |
Types of Cards In Banking System – FAQs
Here we have added some common FAQs related to the types of Cards in banking system for the reference of the candidates.
Q. What are the Types of Cards used in Banking System?
The Types of Cards used in the Banking System are debit cards, credit card, prepaid card, forex card, electronic card, etc.,
Q. What is a credit card?
A credit card is a thin rectangular piece of plastic or metal issued by a bank or financial services company that allows cardholders to borrow funds with which to pay for goods and services with merchants that accept cards for payment.
Q. What are prepaid cards?
In the prepaid cards, you can load the amount in advance and then use the money to make transactions, they are not linked to any bank accounts. The most common example is prepaid gift cards.
Q. What are the details mentioned on the Different Types of Cards In Banking?
Bank Name, Card number, cardholder name, smart chips, Expiration date, Payment network logo, magnetic strip, Hologram, and security code are the details mentioned on the Different Types of Cards In Banking
