1. Meaning of Credit Card
The glossary of credit bill of fare is equally follows:
blogspot.com//search?q=what-is-money-meaning-definition">money from a blogspot.com//search?q=what-is-money-meaning-definition">bank.
- Issued to someone agency i is authorized to utilization a card.
- Obligation agency a moral or legal liability to practise something.
- Remit implies to pay dorsum the money.
The next vi points clarify the pregnant of credit card:
blogspot.com/-6yUQDcsme9U/VN2p1WDoryI/AAAAAAAAHtA/mO4GXkZ8zhg/s1600/meaning-of-credit-card.png" imageanchor="1" rel="lightbox-Credit-Card" title="What is Credit Card? Meaning, Definition, Size as well as Anatomy">
Image credits © Gaurav Akrani.
- Credit bill of fare is a plastic bill of fare issued as well as authorized past times a depository fiscal establishment or NBFC create to lend coin (i.e. give credit) to its customer.
- Primarily, it is a synthetic bill of fare made from a laminated plastic sheet as well as other materials similar paints, magnetic stripe, microchip (IC), gelatin, hologram, thence on.
- It entitles (authorizes) the client to purchase goods as well as services from merchants, traders as well as other parties, based on credit sanctioned to him.
- Its usage should live inside a prescribed credit limit. This bound is assail earning capacity as well as creditworthiness of a cardholder equally communicated (settled) past times an entity (bank or NBFC) issuing it to its customer.
- It gives a client a suitable alternative to excogitation payments for goods as well as services that may live most necessary to him on a day-to-day basis.
- By its usage, client promises the repayment of credit transactions executed past times him. Here, the repayment along amongst involvement (as applicable) must live paid to depository fiscal establishment or NBFC at a after agreed (contracted) date. Repayments along amongst accrued involvement are made either after a menstruum of 30-45 days or on a monthly billing basis.
Image credits © Galib.
2. definition of Credit Card
It is hard to give a perfect definition of credit card. However, attempts tin dismiss live made to define it nether a general, financial, line concern or industrial perspective. Few selected statements given below volition assist you lot derive its narrow as well as broader meaning.
Here are 3 definitions of credit bill of fare depicted as well as listed below.
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Image credits © Gaurav Akrani.
These definitions beingness based on a:
- General sense,
- Financial perspective, and
- Business or industrial context.
- 1. General sense:
- “Credit bill of fare is a suitable alternative for cash payment or credit payment or deferred (i.e. installment) payment. It is used to execute transactions compiled through electronic devices similar a bill of fare swapping machine, estimator amongst Internet facility, thence on.”
- 2. Financial perspective:
- “Credit bill of fare is a facility provided past times a depository fiscal establishment or NBFC. It gives its customers a preference to stimulate got a short-term borrowing of funds unremarkably at the dot of transaction (i.e. spell purchasing something or carrying out a sale).”
- 3. Business or Industrial context:
- “Credit bill of fare is a laminated plastic bill of fare issued past times a depository fiscal establishment or NBFC to give its client a preference to borrow funds on a short-period basis. Here, the involvement is imposed on a cardholder for lending short-term finance. This involvement is oft charged either after a calendar month or 30-45 days later, i time credit transactions stimulate got occurred. The bill of fare bound is pre-communicated inwards written correspondence amongst its holder.”
3. Size of Credit Card
The touchstone dimensions or size of credit bill of fare is equally follows:
Image credits © Gaurav Akrani.
- Credit bill of fare has a tiptop of 2.125 inches (i.e. 53.98 mm or 5.4 cm).
- It has a width of 3.370 inches (i.e. 85.60 mm or 8.5 cm).
- It has a thickness of nearly 0.030 inch (i.e. 0.76 mm or 0.076 cm).
- Its iv corners (i.e. edges) are rounded or curved past times a circle of radius (r) measuring 0.125 inch (i.e. 3.18 mm or 0.318 cm).
- The to a higher house measurements are averages of the maximum as well as minimum values defined for credit cards using ID-1 format of ISO/IEC 7810.
- ISO/IEC 7810 is an international touchstone that specifies physical characteristics similar size, thickness, etc. for identification cards.
- The identification cards used for banking purposes include blogspot.com//search?q=what-is-money-meaning-definition">ATM, credit, debit transactions, thence on. These are helpful to send out quick as well as polish fiscal activities on a day-to-day basis.
- Though ID-1 format of ISO/IEC 7810 is an International standard, variations may rarely hap from solid soil to solid soil as well as fifty-fifty from i credit bill of fare issuing entity to another.
4. Anatomy of Credit Card
The anatomy of credit bill of fare tin dismiss live studied past times analyzing its front end as well as dorsum side.
Image credits © Gaurav Akrani.
1. Sample ikon of the confront or front end side of a credit card.
Image credits © Gaurav Akrani.
Credit bill of fare has next details:
- Issuing entity's logo,
- Payment processor's logo,
- Hologram,
- Expiration date,
- Cardholder's name,
- Card number,
- Individual line concern human relationship identifier number,
- Issuer identifier number (IIN),
- Embedded microchip,
- Major manufacture identifier (MII),
- Issue date, and
- Bank identification number (BIN).
2. Sample ikon of parent or dorsum side of a credit card.
Image credits © Gaurav Akrani.
Credit bill of fare shows next details:
- Security code (card verification number),
- Magnetic stripe,
- Signature panel, and
- Additional information.
Now let's hash out to a higher house details of credit card.
1. Issuing entity's logo
Logo of an issuing entity (bank or NBFC) is a unique graphic mark.
The features of the logo are equally follows:
- Logo is an emblem of the entity that issues a credit bill of fare inwards society to lend coin to its customers.
- Its principal role is to relaxation as well as assist instant world recognition of an issuer.
- It's a symbol that helps people seat the call of depository fiscal establishment or NBFC that has issued a credit-card.
2. Payment processor's logo
A depository fiscal establishment issues a credit bill of fare inwards collaboration amongst some payment processing company. To betoken this tie-up, depository fiscal establishment on its issued cards too puts (mentions) a logo of its partnered bill of fare payment processor.
Payment processor's logo helps a cardholder (user) to seat which payment processor volition procedure as well as compile his credit card's transactions. It too helps him to select an appropriate payment processor spell shopping as well as filing payment forms.
Some leading payment processors:
- Visa,
- MasterCard,
- Discover,
- American Express (AMEX), and
- Japan Credit Bureau (JCB).
3. Hologram
Hologram is a 3D ikon either of an object, private or some special symbol that has been projected as well as captured on a 2D apartment surface.
Important reasons why hologram is on a credit card:
- Hologram acts equally a seal of originality.
- It helps to authenticate a genuine build from a counterfeit one.
- It aids inwards distinguishing an master bill of fare from imitation (dummy) cards.
- It acts equally i of the security measures to avoid forgery.
4. Card number
Card number is a long as well as unique number assigned to a credit card. Often, it is embossed (raised) on its confront or the front-side. It is 16-digits inwards length as well as tin dismiss live extended upwards to a maximum bound of 19-digits.
An ISO/IEC 7812-1 bill of fare number is typically 16 digits long as well as grouped inwards iv sets amongst iv digits inwards each set. It consists of:
- Major Industry Identifier (MII) digit value,
- Bank Identification Number (BIN) at i time replaced amongst an Issuer Identifier Number (IIN),
- Individual Account Identifier, and
- Checksum or depository fiscal establishment check digit.
First single-digit (from left) of a credit bill of fare number is a Major Industry Identifier (MII) digit value. It signifies the category or type of the entity that issued a card.
Note: Click on to a higher house sample ikon of the front end side of a credit bill of fare to instruct a zoomed preview as well as uncovering out where precisely is MII digit value located.
Refer next tabular array to seat Major Industry Identifier (MII) digit values represents which category of an issuer.
blogspot.com/-0Cs1YIbONeA/VOEH_TpEWOI/AAAAAAAAHtk/GDSbNlwCX6w/s1600/major-industry-identifier-MII-digit-value.png" imageanchor="1" rel="lightbox-Credit-Card" title="What is Credit Card? Meaning, Definition, Size as well as Anatomy">
Image credits © Gaurav Akrani. Source © Wikipedia.
The showtime educate of iv digits (which too includes MII digit value) of a credit bill of fare number is called Bank Identification Number (BIN). Printed inwards modest fonts below the bill of fare number BIN is located on its front-left side.
First vi digits of a credit bill of fare number (including the unmarried MII digit value) stand upwards for an Issuer Identifier Number (IIN) of a bill of fare issuing entity. It is required to run inwards the global, inter-industry as well as intra-industry interchange.
As per ISO/IEC 7812-1, BIN is at i time replaced past times IIN. Following paragraph explains reasons behind it.
With the rising need as well as recognition of credit cards, the fiscal institutions opine the replacement of BIN amongst IIN. The role of such replacement was to encompass wider areas of fiscal services, to withdraw diverse service providers nether i roof as well as too to relaxation their identification. The IIN number consists of initial vi digits when compared to BIN, which comprises of solely showtime four. This incorporated alter has resulted inwards to a greater extent than prompt as well as proper assistance to compile as well as to consummate the bill of fare processing.
Digits starting from 7th seat upwards to the minute lastly seat (7 to (n-1)) makes an Individual Account Identifier (IAI).
- Here, n equals the full number of digits flora inwards a credit bill of fare number.
- For example, if n=16, as well as thence the IAI number would start from 7 to (16-1) i.e. from 7th seat to the fifteenth position.
- The IAI number is variable inwards length as well as tin dismiss attain upwards to a maximum of 12-digits.
Final (last or ending) single-digit of a credit bill of fare number is called a Check Digit or checksum.
- As per ISO/IEC 7812-1, the Checksum is a digit added to the cease of a bill of fare number to assist to verify (confirm) its accuracy as well as validate its authenticity (genuineness).
- Most bill of fare numbers encoded amongst Checksum digit utilization LUHN Formula based on LUHN Algorithm or MOD-10 method.
- Thus, ISO/IEC 7812-1 credit bill of fare numbering scheme gives details on:
- The type of industry,
- An issuing entity,
- Customer's information,
- Check Digit, thence on.
5. Expiration Date
Expiry Date of a credit bill of fare is the lastly 24-hour interval until which it remains valid.
The lastly Date of validity is beingness referred equally VALID THRU as well as read equally ‘valid through.’
It uses the MM/YY engagement format. Here:
- MM implies a Month, and
- YY stands for a Year.
For example, if 12/22 is on a credit card, as well as thence it is valid until 12th calendar month of yr 2022 i.e. its ‘VALID THRU’ engagement is Dec 2022. In other words, nosotros tin dismiss say that it volition instruct expired as well as lose its validity on 1st Jan 2023.
6. Cardholder name
Cardholder call is a given string of embossed or printed alphabets on the front end side of a credit card.
It either mentions showtime as well as lastly call of an private or specifies the registered call of a company, theatre or an arrangement belongings the account.
To consummate online transactions, it is mandatory that call on the bill of fare must jibe its cardholder's name.
7. Embedded Microchip
Embedded Microchip is on the front end side of a credit card. It is an electronic storage device commonly known equally a semiconductor memory.
Some essential features of Microchip are equally follows:
- Microchip acts equally an enhanced protection shield of a bill of fare that safely stores confidential credentials of a cardholder. The credentials stored inwards it include:
- Personal Identification Number (PIN),
- Details of a credit bill of fare issuing entity, thence on.
- It provides a comprehensive security to foreclose cloning or duplication of a credit card.
- It encrypts the sensitive information it stores. If hackers scan a credit bill of fare amongst some electronic spying device, as well as thence they volition solely fetch encrypted junk as well as non the master information that the chip contains. This encrypted fighting is almost useless to them equally it is real hard to decode as well as misuse it intentionally.
- It has a superior semiconductor retention as well as amend processing capacity.
- It acts equally a mandatory as well as essential security characteristic of a credit card.
8. Issue date
Issue engagement is the starting engagement from when a credit bill of fare becomes valid as well as gets create to live used past times a cardholder until its 24-hour interval of expiry.
On card, words similar VALID FROM are printed or embossed to bring upwards its engagement of issue.
As similar an expiration date, number engagement too uses an MM/YY engagement format.
Example: If 01/15 is in that location on a credit card, as well as thence its validity starts from the 1st calendar month of yr 2015 i.e. its ‘valid from’ Jan 2015. In other words, nosotros tin dismiss say that the bill of fare became officially valid as well as got create to beingness used on 1st Jan 2015.
9. Magnetic stripe
Magnetic stripe is too sometimes called equally ‘mag-stripe’ or ‘swipe card.’
Its features are equally follows:
- Magnetic stripe is oft on the dorsum side of a credit card.
- It comes inwards 3 dissimilar colors viz., black, brown, as well as silver.
- It is a storage device.
- It is divided farther into 3 horizontal stripes known as:
- Track 1,
- Track 2, and
- Track 3.
ISO/IEC 7811 is an international touchstone that specifies the traditional information recording techniques used on the magnetic stripe of identification cards similar credit cards.
According to this standard, the information recording density must live equally follows:
- On Track 1: It must live 210 bpi (bits per inch) or 8.27 bpmm (bits per mm),
- On the Track 2: It should live 75 bpi or 2.95 bpmm, and
- On the Track No.3: It is over again supposed to live 210 bpi or 8.27 bpmm.
The information recorded on the Track 1 as well as Track 2 of the magnetic stripe contains details of the cardholder's account, like:
- A credit bill of fare number,
- Name of the cardholder,
- Expiry date, and
- Issuer's solid soil code.
Track 1 generally contains tape of an alphabetical value that is ever a credit cardholder's call as well as his related information.
Track 2, of a magnetic stripe, stimulate got codes encoded inwards it, like:
- CVV1 code of VISA,
- CVC1 code of MasterCard,
- CAV1 code of Nihon Credit Bureau (JCB), and
- CID or 4DBC code of American Express (AMEX).
Track 3 is either non-existent or empty or may consist of some supplementary information nearly the credit cardholder as well as hardly used for some validation process.
Now amongst continuous improvement inwards the technology, magnetic stripes are getting obsolete equally novel contactless credit as well as debit cards are emerging inwards the market.
10. Security code
Security Code is:
- Card verification number or value,
- Unique from whatsoever other number flora on a credit card,
- Often a 3-digits number,
- Sometimes may fifty-fifty live a 4-digits number.
The principal features of the bill of fare security code:
- Security code gives an additional layer of security to the credit card.
- It helps to depository fiscal establishment check as well as confirm the physical accessibility of the card.
- It prevents an unauthorized bill of fare access as well as minimizes online frauds.
The bill of fare security code is beingness named as well as abbreviated differently past times diverse bill of fare payments processing companies. Visa, MasterCard, American Express as well as JCB telephone band it equally CVV2, CVC2, CID, as well as CAV2, respectively.
- CVV2 is an abbreviation of Card Verification Value Two.
- CVC2 is a short-form of Card Validation Code Two.
- CID stands for a Card Identification Number.
- CAV2 tin dismiss expand equally Card Authentication Value Two.
In the instance of Visa, MasterCard, as well as JCB, bill of fare security code is a 3-digits number as well as is unremarkably printed on the parent or dorsum side of a credit card.
However, inwards instance of American Express, it is a 4-digits number printed on the confront or front end side of a credit card.
11. Signature panel
Signature panel is a rectangular infinite located on the dorsum side of a credit card.
As its call says, it is a reserved house where a cardholder must position or write his authorized signature. It as well as thence must live signed past times a cardholder amongst a skillful permanent mark pen. For this purpose, a pen amongst dark-colored ink preferably bluish or dark must live used.
Features of having a signature panel:
- Signature panel is an added characteristic for customization as well as security of a credit card.
- It allows the merchants as well as traders to validate the authenticity of a individual using a credit card. It helps them to cross depository fiscal establishment check whether the physical signature inwards the transaction invoice matches amongst the i on the dorsum of a card.
It is mandatory that this panel must live signed properly else the credit bill of fare is considered invalid. Often next alert controversy is printed on its top-right corner,
“NOT VALID UNLESS SIGNED.”
12. Additional information
Additional information is in that location on the dorsum side of a credit card.
It mainly contains useful details about:
- Service disclaimer,
- Address of a bill of fare issuing entity, and
- Toll-free telephone number for a client support.
Service disclaimer acts similar a legal acknowledgment (acceptance) for an understanding on the damage as well as atmospheric condition betwixt a credit bill of fare issuing entity as well as the cardholder.
Address of an issuing entity gives official mailing or contact information nearly the depository fiscal establishment or NBFC that issued a bill of fare to its customer. If anyone is inwards possession of a lost as well as flora credit card, as well as thence inwards such a case, this address helps a owner to give upwards the flora bill of fare to its issuer.
Customer service is made available via a toll-free telephone number. It supports or helps a cardholder to:
- Resolve card-related queries,
- Seek an immediate guidance regarding the usage of credit card,
- Register a complaint or grievance,
- Alert a fraud, if any, and
- Contact the bill of fare issuer on diverse of import matters arising on a day-to-day basis.
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