CREDIT CARDS

DEBIT
&
CARDS
BY:

Priyal
Shah
Sandeep
Gupta

What is credit card?

A credit card is a small plastic card issued to users as a system of
payment. It allows its holder to buy goods and services based on the
holder's promise to pay for these goods and services. The issuer of
the card creates a revolving account and grants a line of credit to
the consumer (or the user) from which the user can borrow money
for payment to a merchant or as a cash advance to the user.

Eligibility for getting the card

A Person should have an account with the bank.
Report assets and liabilities of a person on a particular date to
bank
A statement of annual or monthly income
A Person is considered creditworthy up to certain limit
depending upon his income, assets and expenditure.
The eligible customer is asked to fill in an application form giving
the details of account number, name, address, income, wealth
status and a proof of his income/wealth etc.

Types of credit cards

Based on the mode of credit recovery
1. ICICI Bank Coral credit card
This type of credit card follows unlimited cash rewards, Everyday &
Everywhere. The cardholder has to pay a minimum percentage of the
outstanding credit. It consists of other benefits such as cash
rewards on dining, groceries and at supermarkets.
2. ICICI Bank Unifare Credit Card
The ICICI Bank Unifare Credit Card brings to you the convenience of
a Delhi Metro Smart Card along with the advantages of a Credit
Card.

 ICICI Bank Instant Platinum Credit Card

The ICICI Bank Instant Platinum Credit Card is a good choice for
you if you need an instant and free Credit Card. Build or repair
your Credit Score with our assured credit card against fixed
deposits.
ICICI Bank Platinum Chip Credit Card
The ICICI Bank Platinum Chip Credit Card offers you great value
as a no-frills, easy to manage card with these exciting benefits
such as follows: Security of a chip card to protect you against the risk of fraud.
Rewards powered by PAYBACK, redeemable for exciting gifts
and vouchers.
Fuel surcharge waiver.
Minimum 15% savings on dining at over 800 restaurants courtesy
our Culinary Treats program.

Based on Status of Credit Card

1. Standard card
Credit cards that are regularly issued by all card-issuing banks are called
standard cards. With these cards, it is possible for a cardholder to make
purchases without having to pay cash immediately. It however offers only
limited privileges to cardholders.
2. Business card
Business card, also called Executive cards, are issued to small partnership
firms, solicitors, firms of chartered accountants, tax consultants and
others, for use by executives on their business trips. The card enjoys
higher credit limits and more privileges than the standard cards. These
cards are issued in the name of the executives of the firm.
3. Gold card
It offers many additional benefits and facilities such as higher credit
limits, more cash advance limits etc. that are not available with standard or
executive cards.

Innovative Cards
ATM cards
It allows customers to access their accounts at any time-24 hours a day of
the year, through automated teller machines. Customers can withdraw cash,
transfer funds, find out their account balance and perform other banking
and financial transactions with the help of ATMs.
Prepaid cards
Also known as Stored Value Cards are cards with stored value paid in
advance, by the holder. Its use is often restricted to a number of
identified points of sale within a specified location.

Private label cards

These cards are uniquely tied to the retailer issuing the card and can be
used only in that retailers store.
Smart cards
A smart card is a credit card sized plastic card with an embedded
computer chip. The chip allows the card to carry a much greater amount
of information than a magnetic strip card. There are two types of smart
cards, namely memory cards and microprocessor cards.
Memory cards are static. They store information and value and are not
programmable. Phone cards and other prepaid cards are examples.
Microprocessor cards have internal memory, have high storage capabilities
and the data stored in the chip is dynamic.

An example of the front of a typical credit card

1. Issuing Bank Logo

2. EMV chip on smart cards
3. Hologram
4. Credit card number
5. Card brand logo
6. Expiration date
7. Card holder name
8. Contactless chip

An example of the reverse side of a

typical credit card
1. Magnetic stripe
2. Signature strip
3. Card security code

Benefits of Credit Cards

Benefits to Card holders
Shopping convenience
Credit facility
Safety
Meticulous record
Acceptability
Benefits to Merchants
Enhanced sales
Easy validation
No risk
Benefits to issuer banks
Source of income
Market expansion
Cross selling

Drawbacks of Credit Cards

Waste of money
Thoughtless buying
Financial problem
Mental agony
Costly

What is Debit Card?

It is a plastic card similar to the credit
card where the expenditure amount is
automatically

debited

to

the

corresponding bank account. This amount

will appear , in due course, on the monthly
statement of the account. It is a variant
of

an

ATM

customers

card,
to

which
make

helps

the

payments

instantaneously for goods and services

purchased.

Dangers of Debit Cards

Most debit card holders prefer using the debit cards only for standard ATM
withdrawals. There is always a lurking fear in the minds of customers that
their bank balance may be knocked off by card thieves. This is the reason for
the limited use of such cards at restaurants, department stores and other
retail outlets which accept debit cards.

Difference between Debit Cards and Credit

Cards
Debit Card
Drawings are against own assets

Credit Card
It allows a borrowing power on

or money lying in the savings bank the bank for which the customer or
account

holder has to pay some charges or

fees
No risk of over spending as the
The customer tends to over
customer can spend what he has

spend because he can spend money

which he does not have at that
moment

Debit Card

Credit Card

Does not involve any interest

payment or cost to the holder

Holder of credit card has to pay

interest on the overdrawn amount

The holder need not carry any

It provides additional finance to

cost or even travellers cheque. It the holder by allowing him to

is

as

good

as

money

accounts with his bank

in

the overdraw if necessary. Payments

are made by the bank to the
extent of purchases and if they
exceed this limit, he pays interest
on the excess amount

Thank You