Bank cards were created more than sixty years ago, during which time they have come a long way. The first products were in the form of a simple rectangle made of cardboard, but over time the cards changed.
Instructions
Step 1
A modern bank card is plastic with a chip. The capabilities of bank cards depend on the functional purpose, payment system, and other characteristics.
Step 2
There are several types of bank cards. Debit cards are widely used to dispense cash, pay for goods and services. Such plastic is tied to a bank account, allowing the cardholder to use the funds on the account. In addition, the cardholder gets the opportunity to make non-cash transactions, manage his funds.
Step 3
Although cardholders cannot use credit funds, in some cases a technical (unauthorized) overdraft is possible. As with regular deposits, debit cardholders receive interest on their account balance.
Step 4
Credit cards are ubiquitous today. The cardholder gets the opportunity to pay with the bank's funds within the established limit. Its size depends on the person's ability to pay and is governed by the conditions specified in the loan agreement.
Step 5
If we compare a credit card and a targeted loan, then the first has several advantages. Firstly, the credit on the card is revolving, after depositing the funds, the money can be used again. Secondly, the cardholder does not need to report to the bank about the purposes for which he spent the money.
Step 6
Salary cards are a type of debit cards that a company issues to its employee. On such a card, the organization transfers the salary and other payments due to employees. Very often, overdrafts are provided to holders of salary cards.
Step 7
Overdraft cards can be distinguished into a separate type. These are debit cards that combine the bank's credit limit and the owner's debit account.
Step 8
Prepaid cards can be classified as rechargeable cards that are designed to pay for goods and services. This category includes gift cards that have gained widespread popularity.
Step 9
It is worth mentioning about virtual cards that are used to make purchases on the Internet. Such cards do not have a physical medium, plastic. This is a prepaid card, payments are made using details, as well as CVC2 or CVV2 codes. You cannot withdraw cash from a virtual card.
