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Presented To: Vibha Jain Presented By: Nishu Chopra Semester 03 (2009-11) Srim

Credit cards are plastic cards that allow cardholders to make purchases without paying immediately. The first universal credit cards were introduced in the 1950s. Credit cards work by storing identifying and account information on a magnetic stripe that is read by machines. Credit card numbers contain identifying bank and account information. Smart cards have built-in microprocessors and use cryptography. There are different types of credit cards like bank cards, travel cards, and store-specific cards. Cardholders should check statements for errors.

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172 views14 pages

Presented To: Vibha Jain Presented By: Nishu Chopra Semester 03 (2009-11) Srim

Credit cards are plastic cards that allow cardholders to make purchases without paying immediately. The first universal credit cards were introduced in the 1950s. Credit cards work by storing identifying and account information on a magnetic stripe that is read by machines. Credit card numbers contain identifying bank and account information. Smart cards have built-in microprocessors and use cryptography. There are different types of credit cards like bank cards, travel cards, and store-specific cards. Cardholders should check statements for errors.

Uploaded by

bansi2kk
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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PLASTIC

MONEY
{CREDIT
CARDS}
Presented to : Vibha Jain
Presented by : Nishu Chopra
Semester 03 (2009-11)
SRIM
Content
• Credit Cards
• History of Credit Cards
• How Credit Card Works
• What Credit Card Numbers Mean
• The Stripe on a Credit Card
• Smart Cards
• Credit Card Safety
• Card Type
• How to avoid Bill Errors
Credit Cards
• A credit card is a monetary instruments that
enables the cardholder to obtain goods &
services without actual payment at the time of
purchase
• It is also known as “Plastic Money”
• In other words credit card is basically a “Pay
Later” card that provided to a customer
History of Credit Cards
• The first universal credit card -- one that could
be used at a variety of stores and businesses --
was introduced by Diners Club, Inc., in 1950.
With this system, the credit-card company
charged cardholders an annual fee and billed
them on a monthly or yearly basis. Another
major universal card -- "Don't leave home
without it!" -- was established in 1958 by the
American Express company.
How Credit Cards Work
• A credit card is a thin plastic card, usually 3-1/8 inches by 2-
1/8 inches in size, that contains identification information such
as a signature or picture, and authorizes the person named on
it to charge purchases or services to his account -- charges for
which he will be billed periodically
• the information on the card is read by automated teller
machines (ATMs), store readers, and bank and Internet
computers
• The Bank Credit-Card System- the bank credits the account
of the merchant as sales slips are received and assembles
charges to be billed to the cardholder at the end of the billing
period. The cardholder, in turn, pays the bank either the entire
balance or in monthly installments with interest (sometimes
called carrying charges)
What Credit Card Numbers Mean
• Visa - Digits 2 to 6 are the bank number,
digits 7 to 12 or 7 t0 15 are the account
number and digit 13 or 16 is a check digit
• MasterCard - Digits two and three, two to
four, two to five or two to six are the bank
number
• The digits after the bank number up
through digit 15 are the account number,
and digit 16 is a check digit.
The Stripe on a Credit Card
• The stripe on the back of a credit card is a magnetic stripe, often
called a magstripe. The magstripe is made up of tiny iron-based
magnetic particles in a plastic-like film. Each particle is really a tiny
bar magnet about 20-millionths of an inch long. It carries records
like :
a) Merchant ID
b) Valid card number
c) Expiration date
d) Credit-card limit
e) Card usage

• the cardholder enters a personal identification number (PIN)


using a keypad.
Smart Cards
• The "smart" credit card is an innovative application
that involves all aspects of cryptography (secret codes),
not just the authentication we described in the last
section. A smart card has a microprocessor built into the
card itself. Cryptography is essential to the functioning of
these cards in several way .
• Smart cards first saw general use in France in 1984.
They are now hot commodities that are expected to
replace the simple plastic cards most of us use now.
Visa and MasterCard are leading the way in the United
States with their smart card technologies
Credit Card Safety
• Sign your card -- as soon as you receive it! (Obviously, this is only
as effective as the clerk who's checking it.)
• When you use your card at an ATM, enter your PIN in such a
way that no one can easily memorize your keystrokes.
• Don't leave your receipt behind at the ATM
• Never give your credit-card number over the telephone
• Ignore any credit-card offer that requires you to spend money
• Make sure you get your card back after you make a purchase
• Always keep a list of your credit cards, credit-card numbers
and toll-free numbers in case your card is stolen or lost
• Check your monthly statement
Card Type
There are basically three types of credit cards:

• Bank cards, issued by banks (for example, Visa,


MasterCard and Discover Card)
• Travel and entertainment (T&E) cards, such as
American Express and Diners Club
• House cards that are good only in one chain of stores
(Sears is the biggest one of these, followed by the oil
companies, phone companies and local department
stores.) T&E cards and national house cards have the
same terms and conditions wherever you apply.
Card Type cont…
• Master Card
• VISA Card
• Affinity Card ( cards given to celebrities to avail special discounts, Example : Airlines, Restaurants
etc.)
• Standard Card
• Classic Card
• Gold Card or Executive Card
• Platinum Card
• Titanium Card
• Secured Card
• Charge Card
• Rebate Card
• Co-branded Card
• Cash Card
• Travel Card
• Laghu Udyami Credit Card (LUCC) scheme
How to avoid Bill Errors
• Good payment record
• Control of debt load
• Signs of stability, responsibility
• Lack of credit inquiries -
• Lack of available or unused credit
• Get rid of the cards you don't use.
THANK YOU

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