1. Meaning of Credit Card
The glossary of credit carte du jour is every bit 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 way ane is authorized to usage a card.
- Obligation way a moral or legal liability to practice something.
- Remit implies to pay dorsum the money.
The next 6 points clarify the important 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 in addition to Anatomy">
Image credits © Gaurav Akrani.
- Credit carte du jour is a plastic carte du jour issued in addition to authorized yesteryear a banking concern or NBFC fix to lend coin (i.e. give credit) to its customer.
- Primarily, it is a synthetic carte du jour made from a laminated plastic canvass in addition to other materials similar paints, magnetic stripe, microchip (IC), gelatin, hologram, hence on.
- It entitles (authorizes) the client to purchase goods in addition to services from merchants, traders in addition to other parties, based on credit sanctioned to him.
- Its usage should live inside a prescribed credit limit. This bound is assault earning capacity in addition to creditworthiness of a cardholder every bit communicated (settled) yesteryear an entity (bank or NBFC) issuing it to its customer.
- It gives a client a suitable alternative to excogitation payments for goods in addition to 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 yesteryear him. Here, the repayment along amongst involvement (as applicable) must live paid to banking concern or NBFC at a subsequently agreed (contracted) date. Repayments along amongst accrued involvement are made either after a catamenia 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 organisation or industrial perspective. Few selected statements given below volition assist you lot derive its narrow in addition to broader meaning.
Here are iii definitions of credit carte du jour depicted in addition to 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 carte du jour 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 carte du jour swapping machine, reckoner amongst Internet facility, hence on.”
- 2. Financial perspective:
- “Credit carte du jour is a facility provided yesteryear a banking concern or NBFC. It gives its customers a preference to get got a short-term borrowing of funds ordinarily at the dot of transaction (i.e. spell purchasing something or carrying out a sale).”
- 3. Business or Industrial context:
- “Credit carte du jour is a laminated plastic carte du jour issued yesteryear a banking concern 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 ofttimes charged either after a calendar month or 30-45 days later, ane time credit transactions get got occurred. The carte du jour bound is pre-communicated inwards written correspondence amongst its holder.”
3. Size of Credit Card
The criterion dimensions or size of credit carte du jour is every bit follows:
Image credits © Gaurav Akrani.
- Credit carte du jour has a summit 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 virtually 0.030 inch (i.e. 0.76 mm or 0.076 cm).
- Its 4 corners (i.e. edges) are rounded or curved yesteryear 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 in addition to minimum values defined for credit cards using ID-1 format of ISO/IEC 7810.
- ISO/IEC 7810 is an international criterion 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, hence on. These are helpful to send out quick in addition to polish fiscal activities on a day-to-day basis.
- Though ID-1 format of ISO/IEC 7810 is an International standard, variations may rarely tumble out from province to province in addition to fifty-fifty from ane credit carte du jour issuing entity to another.
4. Anatomy of Credit Card
The anatomy of credit carte du jour tin dismiss live studied yesteryear analyzing its front end in addition to dorsum side.
Image credits © Gaurav Akrani.
1. Sample icon of the aspect upward or front end side of a credit card.
Image credits © Gaurav Akrani.
Credit carte du jour has next details:
- Issuing entity's logo,
- Payment processor's logo,
- Hologram,
- Expiration date,
- Cardholder's name,
- Card number,
- Individual line organisation human relationship identifier number,
- Issuer identifier number (IIN),
- Embedded microchip,
- Major manufacture identifier (MII),
- Issue date, and
- Bank identification number (BIN).
2. Sample icon of bring upward or dorsum side of a credit card.
Image credits © Gaurav Akrani.
Credit carte du jour shows next details:
- Security code (card verification number),
- Magnetic stripe,
- Signature panel, and
- Additional information.
Now let's verbalize over 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 every bit follows:
- Logo is an emblem of the entity that issues a credit carte du jour inwards society to lend coin to its customers.
- Its principal travel is to ease in addition to assist instant world recognition of an issuer.
- It's a symbol that helps people seat the call of banking concern or NBFC that has issued a credit-card.
2. Payment processor's logo
A banking concern issues a credit carte du jour inwards collaboration amongst some payment processing company. To dot this tie-up, banking concern on its issued cards too puts (mentions) a logo of its partnered carte du jour payment processor.
Payment processor's logo helps a cardholder (user) to seat which payment processor volition procedure in addition to compile his credit card's transactions. It too helps him to take away an appropriate payment processor spell shopping in addition to filing payment forms.
Some leading payment processors:
- Visa,
- MasterCard,
- Discover,
- American Express (AMEX), and
- Japan Credit Bureau (JCB).
3. Hologram
Hologram is a 3D icon either of an object, private or some special symbol that has been projected in addition to captured on a 2D apartment surface.
Important reasons why hologram is on a credit card:
- Hologram acts every bit a seal of originality.
- It helps to authenticate a genuine build from a counterfeit one.
- It aids inwards distinguishing an master carte du jour from mistaken (dummy) cards.
- It acts every bit ane of the security measures to avoid forgery.
4. Card number
Card number is a long in addition to unique number assigned to a credit card. Often, it is embossed (raised) on its aspect upward or the front-side. It is 16-digits inwards length in addition to tin dismiss live extended upward to a maximum bound of 19-digits.
An ISO/IEC 7812-1 carte du jour number is typically 16 digits long in addition to grouped inwards 4 sets amongst 4 digits inwards each set. It consists of:
- Major Industry Identifier (MII) digit value,
- Bank Identification Number (BIN) right away replaced amongst an Issuer Identifier Number (IIN),
- Individual Account Identifier, and
- Checksum or banking concern check digit.
First single-digit (from left) of a credit carte du jour 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 icon of the front end side of a credit carte du jour to larn a zoomed preview in addition to uncovering out where just 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 in addition to Anatomy">
Image credits © Gaurav Akrani. Source © Wikipedia.
The commencement laid of 4 digits (which too includes MII digit value) of a credit carte du jour number is called Bank Identification Number (BIN). Printed inwards small-scale fonts below the carte du jour number BIN is located on its front-left side.
First 6 digits of a credit carte du jour number (including the unmarried MII digit value) correspond an Issuer Identifier Number (IIN) of a carte du jour issuing entity. It is required to operate inwards the global, inter-industry in addition to intra-industry interchange.
As per ISO/IEC 7812-1, BIN is right away replaced yesteryear IIN. Following paragraph explains reasons behind it.
With the rising need in addition to recognition of credit cards, the fiscal institutions opine the replacement of BIN amongst IIN. The travel of such replacement was to encompass wider areas of fiscal services, to convey diverse service providers nether ane roof in addition to too to ease their identification. The IIN number consists of initial 6 digits when compared to BIN, which comprises of alone commencement four. This incorporated alter has resulted inwards to a greater extent than prompt in addition to proper assistance to compile in addition to to consummate the carte du jour processing.
Digits starting from 7th seat upward to the minute lastly seat (7 to (n-1)) makes an Individual Account Identifier (IAI).
- Here, n equals the full number of digits constitute inwards a credit carte du jour number.
- For example, if n=16, in addition to hence 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 in addition to tin dismiss attain upward to a maximum of 12-digits.
Final (last or ending) single-digit of a credit carte du jour number is called a Check Digit or checksum.
- As per ISO/IEC 7812-1, the Checksum is a digit added to the halt of a carte du jour number to assist to verify (confirm) its accuracy in addition to validate its authenticity (genuineness).
- Most carte du jour numbers encoded amongst Checksum digit usage LUHN Formula based on LUHN Algorithm or MOD-10 method.
- Thus, ISO/IEC 7812-1 credit carte du jour numbering scheme gives details on:
- The type of industry,
- An issuing entity,
- Customer's information,
- Check Digit, hence on.
5. Expiration Date
Expiry Date of a credit carte du jour is the lastly twenty-four hr catamenia until which it remains valid.
The lastly Date of validity is beingness referred every bit VALID THRU in addition to read every bit ‘valid through.’
It uses the MM/YY appointment format. Here:
- MM implies a Month, and
- YY stands for a Year.
For example, if 12/22 is on a credit card, in addition to hence it is valid until 12th calendar month of twelvemonth 2022 i.e. its ‘VALID THRU’ appointment is Dec 2022. In other words, nosotros tin dismiss say that it volition larn expired in addition to 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 commencement in addition to lastly call of an private or specifies the registered call of a company, theatre or an organisation belongings the account.
To consummate online transactions, it is mandatory that call on the carte du jour must tally 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 every bit a semiconductor memory.
Some essential features of Microchip are every bit follows:
- Microchip acts every bit an enhanced protection shield of a carte du jour that safely stores confidential credentials of a cardholder. The credentials stored inwards it include:
- Personal Identification Number (PIN),
- Details of a credit carte du jour issuing entity, hence on.
- It provides a comprehensive security to forestall cloning or duplication of a credit card.
- It encrypts the sensitive information it stores. If hackers scan a credit carte du jour amongst some electronic spying device, in addition to hence they volition alone fetch encrypted junk in addition to non the master information that the chip contains. This encrypted combat is almost useless to them every bit it is rattling hard to decode in addition to misuse it intentionally.
- It has a superior semiconductor retentiveness in addition to improve processing capacity.
- It acts every bit a mandatory in addition to essential security characteristic of a credit card.
8. Issue date
Issue appointment is the starting appointment from when a credit carte du jour becomes valid in addition to gets fix to live used yesteryear a cardholder until its twenty-four hr catamenia of expiry.
On card, words similar VALID FROM are printed or embossed to bring upward its appointment of issue.
As similar an expiration date, number appointment too uses an MM/YY appointment format.
Example: If 01/15 is in that location on a credit card, in addition to hence its validity starts from the 1st calendar month of twelvemonth 2015 i.e. its ‘valid from’ Jan 2015. In other words, nosotros tin dismiss say that the carte du jour became officially valid in addition to got fix to beingness used on 1st Jan 2015.
9. Magnetic stripe
Magnetic stripe is too sometimes called every bit ‘mag-stripe’ or ‘swipe card.’
Its features are every bit follows:
- Magnetic stripe is ofttimes on the dorsum side of a credit card.
- It comes inwards iii dissimilar colors viz., black, brown, in addition to silver.
- It is a storage device.
- It is divided farther into iii horizontal stripes known as:
- Track 1,
- Track 2, and
- Track 3.
ISO/IEC 7811 is an international criterion 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 every bit 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 ane time to a greater extent than supposed to live 210 bpi or 8.27 bpmm.
The information recorded on the Track 1 in addition to Track 2 of the magnetic stripe contains details of the cardholder's account, like:
- A credit carte du jour number,
- Name of the cardholder,
- Expiry date, and
- Issuer's province code.
Track 1 generally contains tape of an alphabetical value that is ever a credit cardholder's call in addition to his related information.
Track 2, of a magnetic stripe, get 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 virtually the credit cardholder in addition to hardly used for some validation process.
Now amongst continuous improvement inwards the technology, magnetic stripes are getting obsolete every bit novel contactless credit in addition to debit cards are emerging inwards the market.
10. Security code
Security Code is:
- Card verification number or value,
- Unique from whatever other number constitute on a credit card,
- Often a 3-digits number,
- Sometimes may fifty-fifty live a 4-digits number.
The principal features of the carte du jour security code:
- Security code gives an additional layer of security to the credit card.
- It helps to banking concern check in addition to confirm the physical accessibility of the card.
- It prevents an unauthorized carte du jour access in addition to minimizes online frauds.
The carte du jour security code is beingness named in addition to abbreviated differently yesteryear diverse carte du jour payments processing companies. Visa, MasterCard, American Express in addition to JCB telephone phone it every bit CVV2, CVC2, CID, in addition to 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 every bit Card Authentication Value Two.
In the instance of Visa, MasterCard, in addition to JCB, carte du jour security code is a 3-digits number in addition to is ordinarily printed on the bring upward or dorsum side of a credit card.
However, inwards instance of American Express, it is a 4-digits number printed on the aspect upward 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 pose or write his authorized signature. It in addition to hence must live signed yesteryear 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 in addition to security of a credit card.
- It allows the merchants in addition to traders to validate the authenticity of a individual using a credit card. It helps them to cross banking concern check whether the physical signature inwards the transaction invoice matches amongst the ane on the dorsum of a card.
It is mandatory that this panel must live signed properly else the credit carte du jour is considered invalid. Often next alert arguing 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 carte du jour issuing entity, and
- Toll-free telephone number for a client support.
Service disclaimer acts similar a legal acknowledgment (acceptance) for an understanding on the price in addition to weather condition betwixt a credit carte du jour issuing entity in addition to the cardholder.
Address of an issuing entity gives official mailing or contact information virtually the banking concern or NBFC that issued a carte du jour to its customer. If anyone is inwards possession of a lost in addition to constitute credit card, in addition to hence inwards such a case, this address helps a owner to give upward the constitute carte du jour 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 carte du jour issuer on diverse of import matters arising on a day-to-day basis.
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