Payment card (sometimes a bank payment card — BOD) — is made according to the standard ISO / IEC 7810 ID-1 format from a special plastic- resistant damage plate of standard dimensions 54x86x0,76 mm, which is used to identify its user (holder), for the method fixing information and as an analogue of payment means . Identification is provided by affixing its number to the card (in accordance with ISO / IEC 7812 of the standardized numbering), the term of validity, the name, signature and signature of the cardholder and / or other identification data (magnetic stripe, chip, RFID label , etc.) on the card .
This payment instrument is called «plastic money», is a special type of bank settlement documents and is intended to pay for purchases of goods or services , payment of other obligations and receipt of cash from bank accounts . Typically, a payment card is associated with an account owned by the card holder. The owner of such a card is usually the issuing bank issuing the card, as agreed in the relevant clause of the card opening agreement . Sizes of commissions, held by the bank for servicing the bank account from the cardholder, are stipulated in the contract for servicing the bank account. When opening a bank payment card, the holder receives the bank card number and bank account number.
With the use of plastic cards for a trading point, cash collection is simplified and costs are reduced accordingly, customers’ opportunities are expanded, goods turnover increases . Since the money is in the accounts rather than in the clients’ pockets, the bank can use the funds and more flexibly plan the use of balances in accounts, receive commission for customer service, including the point of sale. The client receives interest on the balance of the card account, and in many types of cards, in certain limits, lending ( overdraft ) is provided.
All types of payment cards have certain security features that are constantly being improved, but there are common security features that must be present in each of the actual cards of a certain type.
Each bank plastic card, before it is issued to a client, passes the stage of personalization (identification), when it enters into the individual information related to the issuing bank and the client.
With the help of digital offset printing on a sheet of plastics, a print (up to forty different images) is printed, and a ready personalized card is received.
Another type is the graphical personalization technology. This special technology provides a way to put on the surface of a plastic card visible to the naked eye of information, that is, receiving on the card monochrome images of black and white photographs, surnames, any numbers, bar code, two-dimensional bar code, holder signature, fingerprint image and high-quality color photos. Known ways of graphic personalization are: thermal transfer, thermosublimation, inkjet printing, laser engraving, laser burning through (the resulting image is visible to the lumen).
Sometimes, several duplicate photographs are printed on the card, for example, one color, and another semi-tone, printed on it or stamped with text (information) (name, number).
A reliable way of protecting certain types of cards is to cover the entire surface of the card or its part with a transparent holographic film with an original pattern under which various images, photographs and signature of the card holder can be drawn. In this case, two technologies are used: the signature is a usual device for writing and printing a signature, pre- scanned and entered into the database using a graphical printing device.
Embossing payment cards is a stamping technology used to make documents. It arose long before the appearance of plastic cards. Embossing is that with the help of physical influence on the surface of the card there appear convex images of letters and numbers. This allows for the mechanized processing of accounting documents. Embossed records in the card are information about the issuing bank, card number and surname and the name of the card holder, other notes of the bank (such as the currency of the account, tariff plan, separate marks, etc.). In cases where billing information is not embossed, it can be engraved with a laser .
Card Magnetic Stripe
A magnetic card is a type of card with a magnetic stripe that can store data by changing the magnetism of tiny iron magnetic particles. A magnetic tape on the back of the card contains a variety of information, including the account number and the expiration date of the card, which should correspond to the date that is embossed on the card face. Each customer has a known PIN only , which is automatically identified by the payment system. It was on the magnetic tape that for the first time information about the cardholder was presented in the form of analogues of units, which subsequently enabled the work of ATMs , the first self-service banking machines.
Also, on the cards for international payments via the Internet there is a code of verification of the user’s card — CVV2- code. It is also called CVC2 (or CVV). These are the last 3 (three) or 4 (four) digits of the code that is on the back (for Visa , Mastercard , or American Express ) card side. CVV makes sure that the card is physically at the disposal of the user. This helps to prevent unauthorized or fraudulent use. Such a necessity exists when calculating via the Internet. This code replaces the signature of the client who usually checks the cashier when calculating on the POS terminal (do not confuse the PIN-code and CVV are completely different things).
Maestro CVV cards may not be available. In this case, the code for making settlements may be provided by the bank serving separately, upon request.
A chip card (also known as a smart card ) is a plastic card with a built-in integrated microchip or microchip for conducting basic card operations through electronic channels. The chip can be used not only by the payment system. The location of the chip itself and the contacts is standardized for universality and support for various payment systems. Distinguish cards with memory, which increases the amount of stored information compared with the magnetic stripe [ source? ] and microprocessor ( Smart Cards ) with a built-in processor that provides a significantly higher level of protection based on cryptographic methods. Smart cards are usually more expensive than cards with a magnetic stripe.
Types of Bank Cards
Plastic cards are basically two types: credit and debit cards . And these cards can be local and international. There are also virtual bank cards , prepaid cards , electronic purses .
- The credit card provides a credit limit provided by the bank to the client during a certain period of time, the amount of which is predetermined by the parties. The client having an account at the bank pays goods and services to the money issuers of the card. The issuing company then submits accounts for payment to the owner of the credit card.
- The debit card provides for the possibility of making a cardholder on his account at a bank of a certain amount within the limits of which he can carry out his expenses in the future.
If credit cards are mostly distributed in the event of the event, then we mainly use debit cards.
The most widespread in the world are payment cards of international systems «Visa» and «MasterCard» .