What are the types of Cards issued by the banks?
Cards are segregated on the basis of issuance, usage and payment by the card holder. The various types of cards available are as follows:
1) Debit Card
These are the cards issued by banks and are linked to a bank account. The debit cards are used to withdraw cash from an ATM, purchase of goods and services at Point of Sale (POS)/E-commerce (online purchase) both domestically and internationally. However, these cards can be used only for domestic fund transfer from one person to another.
2) Credit Card
These are the cards, which are used for purchase of goods and services at Point of Sale (POS) and E-commerce (online purchase)/ through Interactive Voice Response (IVR)/Recurring transactions/ Mail Order Telephone Order (MOTO). These cards can be used domestically and internationally.
3) Prepaid Cards
The Prepaid cards are issued by the banks / non-banks against the value paid in advance by the cardholder and stored in such cards which can be issued as smart cards or chip cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers, etc. Such prepaid cards are known as open system prepaid cards.