8 FAQs on types of Personal Banking Cards

   8 FAQs on types of Personal Banking Cards                                                                                                     

  1. How many types of personal banking cards a customer can avail?

There are basically three types of cards a customer can avail. Cards can be classified on the basis of their issuance, usage and payment by the card holder.

Those three cards are – (1) Debit Card (2) Credit Card and (3) prepaid card.

  1. What is debit card?

A debit card is like an electronic check, because the payment is deducted directly from a saving account. it reduce the need of carrying cash or physical checks to make purchase and payments. Debit card is also known as ATM card, it can be used to withdraw cash at ATMs (Automated Teller Machines).

  1. What is credit card?

A credit card is a personal banking card which allows you to borrow money in small amounts at local merchants.

  1. What is prepaid card?

Prepaid cards look like credit & debit cards. Prepaid cards are preloaded with funds and can be used at most places where debit & credit cards are accepted. But it is different from debit and credit cards in many ways.

  1. What are the usages of Debit Card?

There are various usages of Debit card

  • Debit cards are used to withdraw cash from ATM.
  • Debit cards are used to purchase of goods and services at point of sale, online.
  • It can be used for fund transfer from one person to another.
  1. What are the usages of credit cards?

There are various usages of credit card

  • Credit cards are used for purchase of goods and services at POS and online, recurring transactions, mail order telephone order.
  • Credit cards can be used domestically as well as internationally.
  • It can also be used to withdraw cash from an ATM.
  • It can be used for transferring funds to bank accounts, debit cards, credit cards and prepaid cards within the country.
  1. What are the usages of prepaid cards?

The usages of prepaid cards depend on who has issued these cards.

If prepaid cards issued by the banks, it has following usages:

  • It can be used to withdraw cash from an ATM.
  • Purchase of goods and services at point of sale and online.
  • It can be used for domestic fund transfer from one person to another.

Such prepaid cards are known as system prepaid cards.

In case prepaid cards are issued by authorized non-bank entities, it has following usages:

  • It can be used to purchase of goods and services at point of sale and online.
  • It can be used for domestic fund transfer from one person to another.

Such prepaid cards are known as semi-closed system prepaid cards, these cards can be used only domestically.

  1. Is there any limit on the value stored in a prepaid card?

Yes, the maximum value that can be stored in any prepaid card at any point of time is Rs. 1 lakh. And only one card can be issued to one beneficiary.

Visit Sharp Career for more updates on Financial Update.

 

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