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- What are various types of cards?
Ans: Cards can be classified on the basis of their issuance, usage and payment by the card holder. There are three types of cards (a) debit cards (b) credit cards and (c) prepaid cards.
- Who issues these cards?
Ans: Debit cards are issued by banks and are linked to a bank account. Credit cards are generally issued by banks and a couple of non-banks, but can also be issued by other approved entities. Prepaid cards are issued by banks / non-banks against the value paid in advance by the cardholder and stored in such cards which can be issued in the form of cards or wallets.
- What are the usages of debit cards?
Ans: The debit cards can be used to withdraw cash from an ATM, purchase of goods and services at points of sale (POS) terminals or e-commerce (online purchase). While they can be used domestically, the international usage is also allowed if requested by the holder of the card. They can also be used for domestic funds transfer from one person to another subject to prescribed limits and conditions.
- What are the usages of credit cards?
Ans: The credit cards can be used for purchase of goods and services at POS terminals / e-commerce (online purchase). These cards can be used domestically and internationally (provided they are enabled for international use). The credit cards can also be used to withdraw cash from an ATM and for transferring funds to bank accounts, debit cards, credit cards and prepaid cards within the country, subject to prescribed limits and conditions.
- What are the usages of prepaid cards?
Ans: The usage of prepaid cards depends on who is the issuer of such cards. Prepaid cards can be open or semi-closed in nature. Open system prepaid cards are issued by banks and can be used to withdraw cash from an ATM, purchase of goods and services at POS terminals / e-commerce (online purchase) and for domestic funds transfer from one person to another. Semi-closed system prepaid cards can be issued by authorised bank and non-bank entities and can be used for purchase of goods and services at POS terminals / e-commerce (online purchase) and for domestic funds transfer from one person to another, subject to prescribed limits and conditions.
- What are various methods of using a card at a POS terminal?
Ans: A card can be swiped (Magnetic-Stripe card), dipped (Chip based card) or tapped (Contactless Near Field Communication {NFC} Card) at a POS terminal.
- What are Magnetic Stripe cards, EMV Chip & PIN cards and Contactless NFC cards?
Ans: The Magnetic Stripe card stores card data on the magnetic stripe present on the card while the data in EMV Chip & PIN cards is stored in a chip on the card. In a Contactless NFC card, the card is read by keeping the card near the card reader. The EMV Chip & PIN cards and Contactless NFC cards are considered to be safer when compared to Magnetic Stripe cards.
- What are Card Present (CP) and Card Not Present (CNP) transactions?
Ans: A CP transaction is a card transaction that is carried out through physical presence of card at the point of transaction. It is also known as face-to-face or a proximity payment transaction. An example is a transaction carried out at an ATM or a POS terminal. A CNP transaction does not require the card to be physically presented at the point of transaction. It is also called as a remote transaction. An example is an online transaction or a mobile banking transaction using the card.
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