Banking Awareness: 3 Types of Cards Used in Banks

cards

Dear Reader, Being a bank job aspirant you should have knowledge about basic things on bank operations. We are here to discuss about types of cards used in banks. There are different types of cards issued by the banks which allow you to access your money. We will see in detail about Debit cards, Credit cards and prepaid cards.

Debit Card:
A debit card is also known as a bank card, check card, etc., Debit cards are issued by the banks and are linked to customer bank accounts. Using debit card one can withdraw money up to the permissible limit. Other than withdrawing money from ATMs, they are used for purchase of goods and services in places that use POS devices and online transactions (e.g., E-commerce) both domestically and internationally.

Credit Card:
Credit Card is issued by banks or other entities approved by RBI. (Credit is a loan being given to the user of the card). The issuer of the card authorizes a credit limit for the card holder. The card can be used for transactions (like purchase of goods, online transactions, etc) within the limit. One can also withdraw money from ATM like debit cards. The amount you spend or withdraw will have to be paid back as dues to the issuer of the card within a time limit.

Prepaid Card:
Prepaid card is issued by banks / non-bank financial institutions approved by RBI. The customer can store a predetermined amount of money into the card balance and can use the card just like credit or debit card until the money runs out. Once the balance runs out, the card can be refilled with more money before it can be used again.

If you want clarification for any doubts, please use the comments section below. Also please let us know if you have suggestions or corrections.

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