If your Freedom Credit Card is lost or stolen, all you have to do is report the loss by calling the Bank by Phone number in your city. With Zero Lost Card Liability you are protected against any fraudulent use of your card from the moment you report the loss to us.
Additionally, while traveling overseas if your credit card gets lost or stolen, there's no need to worry. The MasterCard Global Assistance Service provides emergency cash or will issue an emergency Card, if you so desire.
*Please Note: As per Insurance Guidelines, a copy of the FIR filed with the Police Station is mandatory.
Photocard Option
You can now choose to make your Card more secure by having your photograph and signature digitally printed on the front face of your card. And best of all, this option is absolutely free on your Freedom Credit Card.
To apply now, download the Photocard application form, fill it and send it across to any of our branches.
To view the application form, you need to have Adobe Acrobat Reader installed. To download the Reader, click here.
Excellent value for money
Freedom Credit Card offers you great value for money at an incredibly low annual fee of Rs. 595 only. Fill in the form and mail it to us today. And get ready to step into the world of no fear.
24 Hour Bank by Phone service
The 24 Hour Bank by Phone service ensures that ABN AMRO Bank is just a phone call away. Our customer service executives will be glad to assist you, 24 hours a day and 7 days a week.
Monday, March 31, 2008
Insurance Benefits
Your Freedom Credit Card offers you insurance covers, absolutely free of cost. Getting you big savings!
Cover Amount You Pay
Credit Shield 20,000 Nil
* Effective 25th August 2006, Personal Air Accident Cover stands withdrawn.
Please Note: Insurance Benefits are provided to you by Reliance General Insurance Co. All Insurance covers are for Primary Cardmembers only. ABN AMRO does not provide insurance covers. These insurance benefits are available only to active cardholders. In order to be active you must have used your card at least once in the last 90 days preceding the date of loss.Exclusions/limitations are applicable as per policies issued by Reliance General Insurance Company Ltd.
Cover Amount You Pay
Credit Shield 20,000 Nil
* Effective 25th August 2006, Personal Air Accident Cover stands withdrawn.
Please Note: Insurance Benefits are provided to you by Reliance General Insurance Co. All Insurance covers are for Primary Cardmembers only. ABN AMRO does not provide insurance covers. These insurance benefits are available only to active cardholders. In order to be active you must have used your card at least once in the last 90 days preceding the date of loss.Exclusions/limitations are applicable as per policies issued by Reliance General Insurance Company Ltd.
TravelAssist
Car Rentals
As a Freedom Credit Cardmember you also get 15% discount every time you rent a car from Hertz, the leading International Car Rental Company.
Note: To avail the discounts on Car Rental, please contact the Hertz office in your city. For contact details, please click here
To be able to view the contact details, you need to have Adobe Acrobat Reader installed. To download the reader, click here.
Global Calling Card
Your Card brings to you the facility of a free Global Calling Card that allows you to make international calls at extremely competitive rates. What's more, you only get billed later in your monthly Statement of Account and pay for your calls in Indian Rupees.
Please Note: This calling card is to be used overseas only. The Calling Card Company reserves the right to issue cards at its own discretion.
As a Freedom Credit Cardmember you also get 15% discount every time you rent a car from Hertz, the leading International Car Rental Company.
Note: To avail the discounts on Car Rental, please contact the Hertz office in your city. For contact details, please click here
To be able to view the contact details, you need to have Adobe Acrobat Reader installed. To download the reader, click here.
Global Calling Card
Your Card brings to you the facility of a free Global Calling Card that allows you to make international calls at extremely competitive rates. What's more, you only get billed later in your monthly Statement of Account and pay for your calls in Indian Rupees.
Please Note: This calling card is to be used overseas only. The Calling Card Company reserves the right to issue cards at its own discretion.
Free Add-on Card
Extend the joys of Freedom Credit Card to your family. ABN AMRO Bank offers you one Free* Add-on Card. So why wait!
For more details on this feature, please click here.
*The current offer is valid on the annual fee for the first year.
For more details on this feature, please click here.
*The current offer is valid on the annual fee for the first year.
Exceptional Financial Benefits
No-stress Repayment - Pay per your convenience
Your Freedom Credit Card gives you up to 50 days of interest free credit* on your purchases, if you pay your outstandings in full.
While you may buy a product anytime, you can choose to pay in parts per your convenience. All you have to do is just pay a minimum of 5% of the total outstanding each month (subject to a minimum of Rs. 200) and the balance in installments that suit your budget.
*Please refer the Tarriff of Charges for details on applicable charges.
Balance Transfer Facility
If you hold a credit card issued by any other bank, you can transfer your outstanding balance from that card account to your ABN AMRO Freedom Credit Card at a low interest rate* and save on your monthly repayment charges.
Click here to download the Balance Transfer Form.
* Please refer the Tarriff of Charges for details on applicable charges.
Global 'CashAxess' - 24 Hours a day
You can access cash up to 30% of your credit limit at over 2900 ATMs across India and over 6,50,000 ATMs across the globe. You can access cash round-the-clock, 365 days a year from any of the ATMs that display the MasterCard sign.
For more details on this feature, please click here.
Please refer the Tarriff of Charges for details on applicable charges.
Call-a-Draft
There are times when you're too busy to go to the bank or don't have adequate cash for getting a draft made. Call-a-Draft facility allows you to make a draft on credit from the comfort of your home by simply calling our Bank by Phone service in your city.
For more details on this feature, please click here.
Please refer the Tarriff of Charges for details on applicable charges.
World Class Benefits and Services
Mega Deals
As a Freedom Credit Cardmember, you are very special to us. And what better way to express it than our "Good For You" Program. This unique program will bring you value added services that suit your needs. So that you get to enjoy the benefits of exclusive ongoing offers across numerous products, brands and services.
Bonanza Rewards - Earn Rewards every time you Spend
Every time you use your Freedom Credit Card, you earn Bonanza Reward Points that can be exchanged for exclusive gifts including Card renewal fees. You earn 1 point for every Rs. 100 you spend on your card. Your accumulated points can be exchanged across a cross section of products and services, which will be notified to you separately.
Your Freedom Credit Card gives you up to 50 days of interest free credit* on your purchases, if you pay your outstandings in full.
While you may buy a product anytime, you can choose to pay in parts per your convenience. All you have to do is just pay a minimum of 5% of the total outstanding each month (subject to a minimum of Rs. 200) and the balance in installments that suit your budget.
*Please refer the Tarriff of Charges for details on applicable charges.
Balance Transfer Facility
If you hold a credit card issued by any other bank, you can transfer your outstanding balance from that card account to your ABN AMRO Freedom Credit Card at a low interest rate* and save on your monthly repayment charges.
Click here to download the Balance Transfer Form.
* Please refer the Tarriff of Charges for details on applicable charges.
Global 'CashAxess' - 24 Hours a day
You can access cash up to 30% of your credit limit at over 2900 ATMs across India and over 6,50,000 ATMs across the globe. You can access cash round-the-clock, 365 days a year from any of the ATMs that display the MasterCard sign.
For more details on this feature, please click here.
Please refer the Tarriff of Charges for details on applicable charges.
Call-a-Draft
There are times when you're too busy to go to the bank or don't have adequate cash for getting a draft made. Call-a-Draft facility allows you to make a draft on credit from the comfort of your home by simply calling our Bank by Phone service in your city.
For more details on this feature, please click here.
Please refer the Tarriff of Charges for details on applicable charges.
World Class Benefits and Services
Mega Deals
As a Freedom Credit Cardmember, you are very special to us. And what better way to express it than our "Good For You" Program. This unique program will bring you value added services that suit your needs. So that you get to enjoy the benefits of exclusive ongoing offers across numerous products, brands and services.
Bonanza Rewards - Earn Rewards every time you Spend
Every time you use your Freedom Credit Card, you earn Bonanza Reward Points that can be exchanged for exclusive gifts including Card renewal fees. You earn 1 point for every Rs. 100 you spend on your card. Your accumulated points can be exchanged across a cross section of products and services, which will be notified to you separately.
Active Alerts
There are so many occasions when we give in to our impulses and end up spending a lot more than we should. Presenting Active Alerts- a service that sends you friendly e-mail and SMS messages at frequent intervals, to keep you informed about all the vital transactions made with your Card. So you will know where to check yourself.
Active Alerts
The powerful Flexilimit feature offers you the freedom to regulate your credit limit better. If at any point of time you feel that you need to control your spending, you can simply call our Bank by Phone Executive who will be happy to reduce your assigned limit. And, in case, you wish to increase the limit back to its original level, you can do so again by simply calling us up.
You also have the option of assigning a specific percentage of your credit limit for use by each of your additional cardholders. This way you can share the power and conveniences of your Freedom Credit Card with your loved ones without losing control of your finances.
You also have the option of assigning a specific percentage of your credit limit for use by each of your additional cardholders. This way you can share the power and conveniences of your Freedom Credit Card with your loved ones without losing control of your finances.
Flexilimit
The powerful Flexilimit feature offers you the freedom to regulate your credit limit better. If at any point of time you feel that you need to control your spending, you can simply call our Bank by Phone Executive who will be happy to reduce your assigned limit. And, in case, you wish to increase the limit back to its original level, you can do so again by simply calling us up.
You also have the option of assigning a specific percentage of your credit limit for use by each of your additional cardholders. This way you can share the power and conveniences of your Freedom Credit Card with your loved ones without losing control of your finances.
You also have the option of assigning a specific percentage of your credit limit for use by each of your additional cardholders. This way you can share the power and conveniences of your Freedom Credit Card with your loved ones without losing control of your finances.
Discover The World Of No Fear
The ABN AMRO Freedom Credit Card offers you a host of unique features that act as constant checks against overspending. These features are carefully designed to help you manage and control your finances better so that you can truly live without fear.
PetroPlus
Whenever you purchase fuel with your ABN AMRO credit card, you save on 2.5% surcharge amount. Our exclusive PetroPlus program get you a waiver of this surcharge on all fuel purchases above Rs100 across all petrol pumps in India. Tank Up and save up to Rs1200* per annum on surcharge.
*assuming Rs4000 spent on petrol per month.
PetroPlus
Whenever you purchase fuel with your ABN AMRO credit card, you save on 2.5% surcharge amount. Our exclusive PetroPlus program get you a waiver of this surcharge on all fuel purchases above Rs100 across all petrol pumps in India. Tank Up and save up to Rs1200* per annum on surcharge.
*assuming Rs4000 spent on petrol per month.
Cash
You may deposit cash at any our bank branches from 8a.m to 8 p.m. towards your credit card payment. The payment would reflect in your account within 24 hours.Please make your payment one day prior to the due date to avoid Late Payment Charges and Interest Charges.
Cheque / Draft payment
Make a cheque or Draft favouring ICICI Bank Credit Card No. XXXX XXXX XXXX XXXX and drop it at any of the ICICI Bank Branches / ATM Locations / SkyPak drop boxes.
Click here to locate an ICICI Bank ATM or Bank Branch nearest to you.
Click here for the list of Skypak drop boxes
An ICICI Cheque would take 3 days to clear whereas a Non-ICICI Cheque would take 5 days.
Please drop your cheques well in advance to avoid any Late Payment Charges and Interest Charges. You may keep the cheque date as the Statement Due Date
Internet Bill Pay facility
If you hold a savings account with us you may even pay online through Bill Pay. Know more.
Over the Phone
You may even pay over phone if you hold a savings account with us by calling us at any of our Phone Banking numbers closest to you. The amount would take 3 working days to reflect in your credit card account.
Do call us well in advance to avoid Late Payment Charges and Interest Charges.
Cheque / Draft payment
Make a cheque or Draft favouring ICICI Bank Credit Card No. XXXX XXXX XXXX XXXX and drop it at any of the ICICI Bank Branches / ATM Locations / SkyPak drop boxes.
Click here to locate an ICICI Bank ATM or Bank Branch nearest to you.
Click here for the list of Skypak drop boxes
An ICICI Cheque would take 3 days to clear whereas a Non-ICICI Cheque would take 5 days.
Please drop your cheques well in advance to avoid any Late Payment Charges and Interest Charges. You may keep the cheque date as the Statement Due Date
Internet Bill Pay facility
If you hold a savings account with us you may even pay online through Bill Pay. Know more.
Over the Phone
You may even pay over phone if you hold a savings account with us by calling us at any of our Phone Banking numbers closest to you. The amount would take 3 working days to reflect in your credit card account.
Do call us well in advance to avoid Late Payment Charges and Interest Charges.
Temporary Credit Limit Enhancement
There will be times when you feel the need for an increase in your credit limit to enable you to make increased purchases on your Card. To avail of the temporary credit limit enhancement, all you need to do is to call our Customer Call Centre and make your request. The executive will be able to increase the limit on-line.
Please note that this facility is available only after 9 months of membership and based on credit history.
Please note that this facility is available only after 9 months of membership and based on credit history.
Revolving Credit Facility
When you receive your bill, you need not pay the entire bill amount. You have the flexibility of selecting any of the following payment options:
* Pay the total amount due.
* Pay only the minimum amount due (5% of the bill amount subject to a minimum of Rs 100) and the balance can be carried forward to subsequent statements.
* Pay any amount ranging from the minimum amount due to the total amount due.
Auto Debit Facility
If you have an account with any ICICI Bank branch, you have the option of making the payment of your monthly credit statement (either the minimum amount due or the total amount due) directly through your bank account. To know more click here.
* Pay the total amount due.
* Pay only the minimum amount due (5% of the bill amount subject to a minimum of Rs 100) and the balance can be carried forward to subsequent statements.
* Pay any amount ranging from the minimum amount due to the total amount due.
Auto Debit Facility
If you have an account with any ICICI Bank branch, you have the option of making the payment of your monthly credit statement (either the minimum amount due or the total amount due) directly through your bank account. To know more click here.
Internet Banking
We understand the pressures on your time. To access information when you need it, where you need it, we offer you access to ICICI Bank Credit Card related information through the Internet on www.icicibank.com. You can do transactions like accessing account information - current and last statement, getting your payment status, viewing your monthly statement by email, request for a duplicate PIN, record a change of address, order a draft, give auto debit instructions, request for a replacement Card or an add-on Card, access and redeem online from the Rewards catalogue, subscribe to statement by e-mail and mobile alerts. click here to know more.
Limited Lost Card Liability
In case the Card is lost or stolen, call the ICICI Bank 24-hour Customer Care Centre and report the loss of your Card. A new Card will be sent to you within 72 hours of reporting this loss. You are protected from any financial liability arising out of transactions done on your missing Card, from the time you report the loss to us.
Dial-A-Draft
To order a draft from the convenience of your home, simply call the ICICI Bank 24-hour Customer Care Centre and ask for a draft, payable anywhere in India and favouring any company or individual (you can order a draft up to the available cash limit on your account). The draft will be delivered to your mailing address. For each draft request, a transaction fee of 2.5% of the amount withdrawn, subject to a minimum of Rs. 300, will be levied. In addition to the transaction fee, an interest charge will also be levied from the date of transaction to the date of repayment. The amount of the draft will be billed in your monthly Credit Card statement.
Utility Payments
You now have the convenience of paying your utility bills - telephone and mobile phone bills through your ICICI Bank Credit Card. click here to know more.
ICICI Bank 24-hour Customer Care Centre
The ICICI Bank 24-hour Customer Care Centre is equipped with a state-of-the-art system that ensures your queries being handled efficiently and promptly.
Limited Lost Card Liability
In case the Card is lost or stolen, call the ICICI Bank 24-hour Customer Care Centre and report the loss of your Card. A new Card will be sent to you within 72 hours of reporting this loss. You are protected from any financial liability arising out of transactions done on your missing Card, from the time you report the loss to us.
Dial-A-Draft
To order a draft from the convenience of your home, simply call the ICICI Bank 24-hour Customer Care Centre and ask for a draft, payable anywhere in India and favouring any company or individual (you can order a draft up to the available cash limit on your account). The draft will be delivered to your mailing address. For each draft request, a transaction fee of 2.5% of the amount withdrawn, subject to a minimum of Rs. 300, will be levied. In addition to the transaction fee, an interest charge will also be levied from the date of transaction to the date of repayment. The amount of the draft will be billed in your monthly Credit Card statement.
Utility Payments
You now have the convenience of paying your utility bills - telephone and mobile phone bills through your ICICI Bank Credit Card. click here to know more.
ICICI Bank 24-hour Customer Care Centre
The ICICI Bank 24-hour Customer Care Centre is equipped with a state-of-the-art system that ensures your queries being handled efficiently and promptly.
Other Benefits
* Internet Banking
* Limited Lost Card Liability
* Dial-A-Draft
* Utility Payments
* ICICI Bank 24-hour Customer Care Centre
* Revolving Credit Facility
* Auto Debit Facility
* Temporary Credit Limit Enhancement
* Limited Lost Card Liability
* Dial-A-Draft
* Utility Payments
* ICICI Bank 24-hour Customer Care Centre
* Revolving Credit Facility
* Auto Debit Facility
* Temporary Credit Limit Enhancement
Wide Acceptance
ICICI Bank Blue Cards are welcomed at all Merchant Establishments displaying the VISA logo - over 1,10,000 and MasterCard logo - over 77,000 establishments across India and Nepal and the Silver and Gold Cards are accepted globally by over 22 million VISA Card and 22 million MasterCard accepting establishments.
Statement by e-mail and mobile alerts
Statement Online is a very simple, powerful and convenient way to view your Credit Card statement details instantly without any postal delays. Just sign up for Statement Online and get faster, reliable access to your Account Statement. Mobile alerts from ICICI Bank provides you with information on your ICICI Bank Credit Card even when you are on the move. You would now no longer miss a payment or exhaust your credit limit without a warning. Currently customers having Internet Banking user-ids can subscribe to the alerts. To know more click here.
Earn while you spend - ICICI Bank Xpress Rewards Programme
A special bonus plan that allows you to earn points every time you use your Card, Every Rs. 200 that you spend earns you 1 point. The redemption of reward points can be done against the products, services in the rewards catalogue or against your renewal fees. To know more click here.
Photo-Card
You have the option of having your photograph and signature digitally imprinted on the front of the Card. This provides you extra security at any of the merchant establishments. In fact, it can be used as a proof of identification. In the interest of your own security, we strongly recommend that you opt for a photo-Card. If you had decided not to opt for a photo Card when applying, just call the ICICI Bank 24-hour Customer Care Centre and place your request with the executive. A form will be sent to you.
You are then required to mail the completed form to us at : ICICI Bank Credit Card Operations, P.O. Box 7931, Tulsiwadi, PO, Mumbai - 400 034. A photo-Card will be yours at no extra cost.
Self Set Limit
The only Card that allows you to pre-define your own credit limits. You can request for a limit lower than what your are eligible for. You can even preset the monthly spending limits on the "Bandhan" Card. Any transactions over the specified 'Spend Limit' will be declined.
This monthly spending limit can be reset every billing cycle by just calling the ICICI Bank 24-hour Customer Care Centre and place your request with the executive. Your spend limit will be changed on-line and come in to force from the next billing cycle.
Cash Advance Facility
With an ICICI Bank Credit Card in your wallet, you will not be strapped for cash ever again. You can withdraw cash on your Card, 24-hours a day from any VISA and MasterCard participating member bank ATM. During banking hours you can also draw cash over-the-counter, from any ICICI Bank branch in cities where the ICICI Bank Credit Card has been introduced.
Statement by e-mail and mobile alerts
Statement Online is a very simple, powerful and convenient way to view your Credit Card statement details instantly without any postal delays. Just sign up for Statement Online and get faster, reliable access to your Account Statement. Mobile alerts from ICICI Bank provides you with information on your ICICI Bank Credit Card even when you are on the move. You would now no longer miss a payment or exhaust your credit limit without a warning. Currently customers having Internet Banking user-ids can subscribe to the alerts. To know more click here.
Earn while you spend - ICICI Bank Xpress Rewards Programme
A special bonus plan that allows you to earn points every time you use your Card, Every Rs. 200 that you spend earns you 1 point. The redemption of reward points can be done against the products, services in the rewards catalogue or against your renewal fees. To know more click here.
Photo-Card
You have the option of having your photograph and signature digitally imprinted on the front of the Card. This provides you extra security at any of the merchant establishments. In fact, it can be used as a proof of identification. In the interest of your own security, we strongly recommend that you opt for a photo-Card. If you had decided not to opt for a photo Card when applying, just call the ICICI Bank 24-hour Customer Care Centre and place your request with the executive. A form will be sent to you.
You are then required to mail the completed form to us at : ICICI Bank Credit Card Operations, P.O. Box 7931, Tulsiwadi, PO, Mumbai - 400 034. A photo-Card will be yours at no extra cost.
Self Set Limit
The only Card that allows you to pre-define your own credit limits. You can request for a limit lower than what your are eligible for. You can even preset the monthly spending limits on the "Bandhan" Card. Any transactions over the specified 'Spend Limit' will be declined.
This monthly spending limit can be reset every billing cycle by just calling the ICICI Bank 24-hour Customer Care Centre and place your request with the executive. Your spend limit will be changed on-line and come in to force from the next billing cycle.
Cash Advance Facility
With an ICICI Bank Credit Card in your wallet, you will not be strapped for cash ever again. You can withdraw cash on your Card, 24-hours a day from any VISA and MasterCard participating member bank ATM. During banking hours you can also draw cash over-the-counter, from any ICICI Bank branch in cities where the ICICI Bank Credit Card has been introduced.
Global Emergency Assistance Service
The next time you travel abroad please remember that you have the option of using the Global Emergency Assistance Services provided by Visa\Master for our cardholders. These can be availed for
1. Reporting lost/stolen credit cards,
2. Requesting for an emergency card replacement
3. Emergency cash advance
4. Miscellaneous enquiries.
1. Reporting lost/stolen credit cards,
2. Requesting for an emergency card replacement
3. Emergency cash advance
4. Miscellaneous enquiries.
ICICI Bank Credit Cards Features
Balance Transfer Facility
Transfer the balances from your Other Bank Credit Card to your ICICI Bank Credit Card and enjoy an interest rate as low as 0% on the transferred amount.
Various attractive schemes like the 0% Balance Transfer offer and the Life Time Balance Transfer offer, along with the zero documentation and speedy draft delivery make ICICI Bank Credit Card balance Transfer programme the best in the market.
Just see how simple it is to transfer your balances:
* Call up the 24-hour Customer Care Centre number and dial *1122.
* Give your Other Bank Card details (no other documents required) to our phone banking officer.
* On approval, you will receive the draft within 3 working days.
There are other simple ways to apply for a Balance Transfer:
* SMS BT to 5676766 - and we will call you in a days time
* Fill up this small Balance Transfer form and mail it across to us
In both these cases we would give you a call within 1 working day
Transfer the balances from your Other Bank Credit Card to your ICICI Bank Credit Card and enjoy an interest rate as low as 0% on the transferred amount.
Various attractive schemes like the 0% Balance Transfer offer and the Life Time Balance Transfer offer, along with the zero documentation and speedy draft delivery make ICICI Bank Credit Card balance Transfer programme the best in the market.
Just see how simple it is to transfer your balances:
* Call up the 24-hour Customer Care Centre number and dial *1122.
* Give your Other Bank Card details (no other documents required) to our phone banking officer.
* On approval, you will receive the draft within 3 working days.
There are other simple ways to apply for a Balance Transfer:
* SMS BT to 5676766 - and we will call you in a days time
* Fill up this small Balance Transfer form and mail it across to us
In both these cases we would give you a call within 1 working day
Friday, March 28, 2008
Prefixes
The card number's prefix is the sequence of digits at the beginning of the number that determine the credit card network to which the number belongs. The first 6 digits of the credit card number are known as the Bank Identification Number (BIN). These identify the institution that issued the card to the card holder. The rest of the number is allocated by the issuer. The card number's length is its number of digits.
Cards participating in the BIN system include:
credit cards
debit cards
charge cards
stored-value cards
Electronic Benefit Transfer cards
In the United States, BINs are used in NCPDP pharmacy claims to identify processors, and are printed on all pharmacy insurance cards. BINs are the primary routing mechanism for realtime claims. Each processor has one or more BINs, which it divides into plans by using Group Number and Processor Control Number fields.
Online merchants may use BIN lookups to help validate transactions. For example, if the credit card's BIN indicates a bank in one country, while the customer's billing address is in another, the transaction may call for extra scrutiny.
The term "Issuer Identification Number" (IIN) is replacing "Bank Identification Number". See ISO 7812 for more information.
The prefixes and lengths for the most common card types are:
Card Type Prefix(es) Active Length Validation Symbol for coverage chart
American Express 34, 37[1] Yes 15[2] Luhn algorithm AmEx
Bankcard[3] 5610, 560221-560225 No 16 Luhn algorithm BC
China Union Pay 622 (622126-622925) Yes 16,17,18,19 unknown CUP
Diners Club Carte Blanche 300-305 Yes 14 Luhn algorithm DC-CB
Diners Club enRoute 2014, 2149 No 15 no validation DC-eR
Diners Club International[4] 36 Yes 14 Luhn algorithm DC-Int
Diners Club US & Canada[5] 55 Yes 16 Luhn algorithm DC-UC
Discover Card[6] 6011, 65 Yes 16 Luhn algorithm Disc
JCB[citation needed] 35 Yes 16 Luhn algorithm JCB
JCB[citation needed] 1800,2131 Yes 15 Luhn algorithm JCB
Laser (debit card)[citation needed] 6304, 6706, 6771, 6709 Yes 16-19 Luhn algorithm / unknown? Lasr
Maestro (debit card) 5020,5038,6304,6759 Yes 16,18 Luhn algorithm Maes
MasterCard 51-55 Yes 16 Luhn algorithm MC
Solo (debit card) 6334, 6767 Yes 16,18,19 Luhn algorithm Solo
Switch (debit card) 4903,4905,4911,4936,564182,633110,6333,6759 Yes 16,18,19 Luhn algorithm Swch
Visa 4[1] Yes 13,16[7] Luhn algorithm Visa
Visa Electron 417500,4917,4913,4508,4844 Yes 16 Luhn algorithm Visa
On November 8, 2004, MasterCard and Diner's Club formed an alliance. Cards issued in Canada and the USA start with 55 and are treated as MasterCards worldwide. International cards use the 36 prefix and are treated as MasterCards in Canada and the US, but are treated as Diner's Club cards elsewhere. Diner's Club International's website makes no reference to old 38 prefix numbers, and they can be presumed reissued under the 55 or 36 BIN prefix.
Effective October 1, 2006, Discover will now be using the entire 65 prefix, not just 650. Also, similar to the MasterCard/Diner's agreement, China Union Pay cards are now treated as Discover cards and accepted on the Discover network.
A search on VISA's website results in many references to card numbers being 16 digits long. However, searching for references to 13-digit cards will turn up no results. It might be presumed that 13-digit cards no longer exist and have been reissued as 16-digit cards, however old accounts may still use these numbers.
Switch will continue to exist until mid 2007, after that it will branded as Maestro. Maestro is now VISA Electron's main competitor in the European debit card market.
Solo can be used outside of Britain if the card displays Maestro.
Cards participating in the BIN system include:
credit cards
debit cards
charge cards
stored-value cards
Electronic Benefit Transfer cards
In the United States, BINs are used in NCPDP pharmacy claims to identify processors, and are printed on all pharmacy insurance cards. BINs are the primary routing mechanism for realtime claims. Each processor has one or more BINs, which it divides into plans by using Group Number and Processor Control Number fields.
Online merchants may use BIN lookups to help validate transactions. For example, if the credit card's BIN indicates a bank in one country, while the customer's billing address is in another, the transaction may call for extra scrutiny.
The term "Issuer Identification Number" (IIN) is replacing "Bank Identification Number". See ISO 7812 for more information.
The prefixes and lengths for the most common card types are:
Card Type Prefix(es) Active Length Validation Symbol for coverage chart
American Express 34, 37[1] Yes 15[2] Luhn algorithm AmEx
Bankcard[3] 5610, 560221-560225 No 16 Luhn algorithm BC
China Union Pay 622 (622126-622925) Yes 16,17,18,19 unknown CUP
Diners Club Carte Blanche 300-305 Yes 14 Luhn algorithm DC-CB
Diners Club enRoute 2014, 2149 No 15 no validation DC-eR
Diners Club International[4] 36 Yes 14 Luhn algorithm DC-Int
Diners Club US & Canada[5] 55 Yes 16 Luhn algorithm DC-UC
Discover Card[6] 6011, 65 Yes 16 Luhn algorithm Disc
JCB[citation needed] 35 Yes 16 Luhn algorithm JCB
JCB[citation needed] 1800,2131 Yes 15 Luhn algorithm JCB
Laser (debit card)[citation needed] 6304, 6706, 6771, 6709 Yes 16-19 Luhn algorithm / unknown? Lasr
Maestro (debit card) 5020,5038,6304,6759 Yes 16,18 Luhn algorithm Maes
MasterCard 51-55 Yes 16 Luhn algorithm MC
Solo (debit card) 6334, 6767 Yes 16,18,19 Luhn algorithm Solo
Switch (debit card) 4903,4905,4911,4936,564182,633110,6333,6759 Yes 16,18,19 Luhn algorithm Swch
Visa 4[1] Yes 13,16[7] Luhn algorithm Visa
Visa Electron 417500,4917,4913,4508,4844 Yes 16 Luhn algorithm Visa
On November 8, 2004, MasterCard and Diner's Club formed an alliance. Cards issued in Canada and the USA start with 55 and are treated as MasterCards worldwide. International cards use the 36 prefix and are treated as MasterCards in Canada and the US, but are treated as Diner's Club cards elsewhere. Diner's Club International's website makes no reference to old 38 prefix numbers, and they can be presumed reissued under the 55 or 36 BIN prefix.
Effective October 1, 2006, Discover will now be using the entire 65 prefix, not just 650. Also, similar to the MasterCard/Diner's agreement, China Union Pay cards are now treated as Discover cards and accepted on the Discover network.
A search on VISA's website results in many references to card numbers being 16 digits long. However, searching for references to 13-digit cards will turn up no results. It might be presumed that 13-digit cards no longer exist and have been reissued as 16-digit cards, however old accounts may still use these numbers.
Switch will continue to exist until mid 2007, after that it will branded as Maestro. Maestro is now VISA Electron's main competitor in the European debit card market.
Solo can be used outside of Britain if the card displays Maestro.
Credit Card Numbers
The numbers found on credit cards have a certain amount of internal structure, and share a common numbering scheme. Credit card numbers are a special case of ISO 7812 numbers.
An ISO 7812 contains a single-digit major industry identifier (MII), a six-digit issuer identifier number (IIN), an account number, and a single digit checksum using the Luhn algorithm.
The major industry identifier is considered to be part of the issuer identifier number.
An ISO 7812 contains a single-digit major industry identifier (MII), a six-digit issuer identifier number (IIN), an account number, and a single digit checksum using the Luhn algorithm.
The major industry identifier is considered to be part of the issuer identifier number.
Credit cards as funding for entrepreneurs
Credit cards are a creative, yet often risky way for entrepreneurs to acquire capital for their start ups when more conventional financing is unavailable. It is rumoured that Larry Page and Sergey Brin's start up of Google was financed by credit cards to buy the necessary computers and office equipment, more specifically "a terabyte of memory".[30] Similarly, filmmaker Robert Townsend financed part of Hollywood Shuffle using credit cards.[31] Director Kevin Smith funded Clerks in part by maxing out several credit cards. Richard Hatch also financed his production of Battlestar Galactica: The Second Coming partly through his credit cards. Famed hedge fund manager Bruce Kovner began his career (and, later on, his firm Caxton Associates) in financial markets by borrowing from his credit card.
Credit cards in ATMs
Many credit cards can also be used in an ATM to withdraw money against the credit limit extended to the card but many card issuers charge interest on cash advances before they do so on purchases. The interest on cash advances is commonly charged from the date the withdrawal is made, rather than the monthly billing date. Many card issuers levy a commission for cash withdrawals, even if the ATM belongs to the same bank as the card issuer. Merchants do not offer cashback on credit card transactions because they would pay a percentage commission of the additional cash amount to their bank or merchant services provider, thereby making it uneconomical.
Many credit card companies will also, when applying payments to a card, do so at the end of a billing cycle, and apply those payments to everything before cash advances. For this reason, many consumers have large cash balances, which have no grace period and incur interest at a rate that is (usually) higher than the purchase rate, and will carry those balance for years, even if they pay off their statement balance each month.
Many credit card companies will also, when applying payments to a card, do so at the end of a billing cycle, and apply those payments to everything before cash advances. For this reason, many consumers have large cash balances, which have no grace period and incur interest at a rate that is (usually) higher than the purchase rate, and will carry those balance for years, even if they pay off their statement balance each month.
Credit card numbering
The numbers found on credit cards have a certain amount of internal structure, and share a common numbering scheme.
The card number's prefix, called the Bank Identification Number, is the sequence of digits at the beginning of the number that determine the bank to which a credit card number belongs. This is the first six digits for MasterCard and Visa cards. The next nine digits are the individual account number, and the final digit is a validity check code.
In addition to the main credit card number, credit cards also carry issue and expiration dates (given to the nearest month), as well as extra codes such as issue numbers and security codes. Not all credit cards have the same sets of extra codes nor do they use the same number of digits.
The card number's prefix, called the Bank Identification Number, is the sequence of digits at the beginning of the number that determine the bank to which a credit card number belongs. This is the first six digits for MasterCard and Visa cards. The next nine digits are the individual account number, and the final digit is a validity check code.
In addition to the main credit card number, credit cards also carry issue and expiration dates (given to the nearest month), as well as extra codes such as issue numbers and security codes. Not all credit cards have the same sets of extra codes nor do they use the same number of digits.
Hidden costs
In the United Kingdom, merchants won the right through The Credit Cards (Price Discrimination) Order 1990 to charge customers different prices according to the payment method. The United Kingdom is the world's most credit-card-intensive country, with 67 million credit cards for a population of 59 million people.
In the United States, until 1984 federal law prohibited surcharges on card transactions. Although the federal Truth in Lending Act provisions that prohibited surcharges expired that year, a number of states have since enacted laws that continue to outlaw the practice; California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Maine, New York, Oklahoma, and Texas have laws against surcharges.
In the United States, until 1984 federal law prohibited surcharges on card transactions. Although the federal Truth in Lending Act provisions that prohibited surcharges expired that year, a number of states have since enacted laws that continue to outlaw the practice; California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Maine, New York, Oklahoma, and Texas have laws against surcharges.
Fees charged to customers
The major fees are for:
Late payments or overdue payments
Charges that result in exceeding the credit limit on the card (whether done deliberately or by mistake), called overlimit fees
Returned cheque fees or payment processing fees (eg phone payment fee)
Cash advances and convenience cheques (often 3% of the amount). Transactions in a foreign currency (as much as 3% of the amount). A few financial institutions do not charge a fee for this.
Membership fees (annual or monthly), sometimes a percentage of the credit limit.
Foreign Exchange Premium
Late payments or overdue payments
Charges that result in exceeding the credit limit on the card (whether done deliberately or by mistake), called overlimit fees
Returned cheque fees or payment processing fees (eg phone payment fee)
Cash advances and convenience cheques (often 3% of the amount). Transactions in a foreign currency (as much as 3% of the amount). A few financial institutions do not charge a fee for this.
Membership fees (annual or monthly), sometimes a percentage of the credit limit.
Foreign Exchange Premium
Interest on outstanding balances
Interest charges vary widely from card issuer to card issuer. Often, there are "teaser" rates in effect for initial periods of time (as low as zero percent for, say, six months), whereas regular rates can be as high as 40 percent. In the U.S. there is no federal limit on the interest or late fees credit card issuers can charge; the interest rates are set by the states, with some states, like South Dakota, having no ceiling on interest rates and fees, inviting some banks to establish their credit card operations there. Other states, like Delaware, have very weak usury laws. The teaser rate no longer applies if the customer doesn't pay his bills on time, and is replaced by a penalty interest rate (for example, 24.99%) that applies retroactively. So customers should be wary of these offers, that usually contain some traps
Interchange fee
Bank card associations like Visa and MasterCard require merchants to pay billions of dollars in Interchange fees to banks that issue their credit and debit cards.[18] Card-issuing banks obtain these interchange fees in addition to the enormous revenue they receive from cardholder interest and fees. Interchange fees are the single largest component of the various fees that banks deduct from merchants' credit card sales. Merchants pay their banks fees of 1 to 6 percent of each sale (for large merchants these fees may be negotiated, but will vary not only from merchant to merchant, but also from card to card, with business cards and rewards cards generally costing the merchants more to process), which is why many merchants prefer cash, PIN-based debit cards, or even cheques. Traditionally, interchange fees have been set by the bank card associations and their major card-issuing banks, who are the primary beneficiaries of these fees.
The interchange fee that applies to a particular merchant is a function of many variables including the type of merchant, the merchant's total card sales volume, the merchant's average transaction amount, whether the cards are physically present, if the card's magnetic stripe is read or if the transaction is hand-keyed or entered on a website, the specific type of card, when the transaction is settled, the authorized and settled transaction amounts, etc. For a typical credit card issuer, interchange fee revenues may represent about a quarter of total revenues, but this will vary greatly among credit card issuers. Interchange fees may consume over 50 percent of profits from card sales for some merchants (such as supermarkets) that operate on slim margins. Merchants contend that interchange fees force them to raise prices for everyone; banks contend that interchange fees enable them to offer better cardholder rewards for their best customers.
The interchange fee that applies to a particular merchant is a function of many variables including the type of merchant, the merchant's total card sales volume, the merchant's average transaction amount, whether the cards are physically present, if the card's magnetic stripe is read or if the transaction is hand-keyed or entered on a website, the specific type of card, when the transaction is settled, the authorized and settled transaction amounts, etc. For a typical credit card issuer, interchange fee revenues may represent about a quarter of total revenues, but this will vary greatly among credit card issuers. Interchange fees may consume over 50 percent of profits from card sales for some merchants (such as supermarkets) that operate on slim margins. Merchants contend that interchange fees force them to raise prices for everyone; banks contend that interchange fees enable them to offer better cardholder rewards for their best customers.
Thursday, March 27, 2008
Rewards
Many credit card customers receive rewards, such as frequent flier points, gift certificates, or cash back as an incentive to use the card. Rewards are generally tied to purchasing an item or service on the card, which may or may not include balance transfers, cash advances, or other special uses. Depending on the type of card, rewards will generally cost the issuer between 0.25% and 2.0% of the spend. Networks like Visa or MasterCard have increased their fees to allow issuers to fund their rewards system. However, most rewards points are accrued as a liability on a company's balance sheet and expensed at the time of reward redemption. As a result, some issuers discourage redemption by forcing the cardholder to call customer service for rewards. On their servicing website, redeeming awards is usually a feature that is very well hidden by the issuers. Others encourage redemption for lower cost merchandise; instead of an airline ticket, which is very expensive to an issuer, the cardholder may be encouraged to redeem for a gift certificate instead. With a fractured and competitive environment, rewards points cut dramatically into an issuer's bottom line, and rewards points and related incentives must be carefully managed to ensure a profitable portfolio. There is a case to be made that rewards not redeemed should follow the same path as gift cards that are not used: in certain states the gift card breakage goes to the state's treasury. The same could happen to the value of points or cash not redeemed.
Problems
Most internet fraud is done through the use of stolen credit card information which is obtained in many ways, the simplest being copying information from retailers, either online or offline. Despite efforts to improve security for remote purchases using credit cards, systems with security holes are usually the result of poor implementations of card acquisition by merchants. For example, a website that uses SSL to encrypt card numbers from a client may simply email the number from the webserver to someone who manually processes the card details at a card terminal. Naturally, anywhere card details become human-readable before being processed at the acquiring bank, a security risk is created. However, many banks offer systems where encrypted card details captured on a merchant's webserver can be sent directly to the payment processor.
Controlled Payment Numbers are another option for protecting one's credit card number: they are "alias" numbers linked to one's actual card number, generated as needed, valid for a relatively short time, with a very low limit, and typically only valid with a single merchant.
The Federal Bureau of Investigation and U.S. Postal Inspection Service are responsible for prosecuting criminals who engage in credit card fraud in the United States, but they do not have the resources to pursue all criminals. In general, federal officials only prosecute cases exceeding US $5000 in value. Three improvements to card security have been introduced to the more common credit card networks but none has proven to help reduce credit card fraud so far. First, the on-line verification system used by merchants is being enhanced to require a 4 digit Personal Identification Number (PIN) known only to the card holder. Second, the cards themselves are being replaced with similar-looking tamper-resistant smart cards which are intended to make forgery more difficult. The majority of smartcard (IC card) based credit cards comply with the EMV (Europay MasterCard Visa) standard. Third, an additional 3 or 4 digit code is now present on the back of most cards, for use in "card not present" transactions. See CVV2 for more information.
The way credit card owners pay off their balances has a tremendous effect on their credit history. All the information is collected by credit bureaus. The credit information stays on the credit report, depending on the jurisdiction and the situation, for 1, 2, 5, 7 or even 10 years after the debt is repaid.
Controlled Payment Numbers are another option for protecting one's credit card number: they are "alias" numbers linked to one's actual card number, generated as needed, valid for a relatively short time, with a very low limit, and typically only valid with a single merchant.
The Federal Bureau of Investigation and U.S. Postal Inspection Service are responsible for prosecuting criminals who engage in credit card fraud in the United States, but they do not have the resources to pursue all criminals. In general, federal officials only prosecute cases exceeding US $5000 in value. Three improvements to card security have been introduced to the more common credit card networks but none has proven to help reduce credit card fraud so far. First, the on-line verification system used by merchants is being enhanced to require a 4 digit Personal Identification Number (PIN) known only to the card holder. Second, the cards themselves are being replaced with similar-looking tamper-resistant smart cards which are intended to make forgery more difficult. The majority of smartcard (IC card) based credit cards comply with the EMV (Europay MasterCard Visa) standard. Third, an additional 3 or 4 digit code is now present on the back of most cards, for use in "card not present" transactions. See CVV2 for more information.
The way credit card owners pay off their balances has a tremendous effect on their credit history. All the information is collected by credit bureaus. The credit information stays on the credit report, depending on the jurisdiction and the situation, for 1, 2, 5, 7 or even 10 years after the debt is repaid.
Problems
Most internet fraud is done through the use of stolen credit card information which is obtained in many ways, the simplest being copying information from retailers, either online or offline. Despite efforts to improve security for remote purchases using credit cards, systems with security holes are usually the result of poor implementations of card acquisition by merchants. For example, a website that uses SSL to encrypt card numbers from a client may simply email the number from the webserver to someone who manually processes the card details at a card terminal. Naturally, anywhere card details become human-readable before being processed at the acquiring bank, a security risk is created. However, many banks offer systems where encrypted card details captured on a merchant's webserver can be sent directly to the payment processor.
Controlled Payment Numbers are another option for protecting one's credit card number: they are "alias" numbers linked to one's actual card number, generated as needed, valid for a relatively short time, with a very low limit, and typically only valid with a single merchant.
The Federal Bureau of Investigation and U.S. Postal Inspection Service are responsible for prosecuting criminals who engage in credit card fraud in the United States, but they do not have the resources to pursue all criminals. In general, federal officials only prosecute cases exceeding US $5000 in value. Three improvements to card security have been introduced to the more common credit card networks but none has proven to help reduce credit card fraud so far. First, the on-line verification system used by merchants is being enhanced to require a 4 digit Personal Identification Number (PIN) known only to the card holder. Second, the cards themselves are being replaced with similar-looking tamper-resistant smart cards which are intended to make forgery more difficult. The majority of smartcard (IC card) based credit cards comply with the EMV (Europay MasterCard Visa) standard. Third, an additional 3 or 4 digit code is now present on the back of most cards, for use in "card not present" transactions. See CVV2 for more information.
The way credit card owners pay off their balances has a tremendous effect on their credit history. All the information is collected by credit bureaus. The credit information stays on the credit report, depending on the jurisdiction and the situation, for 1, 2, 5, 7 or even 10 years after the debt is repaid.
Controlled Payment Numbers are another option for protecting one's credit card number: they are "alias" numbers linked to one's actual card number, generated as needed, valid for a relatively short time, with a very low limit, and typically only valid with a single merchant.
The Federal Bureau of Investigation and U.S. Postal Inspection Service are responsible for prosecuting criminals who engage in credit card fraud in the United States, but they do not have the resources to pursue all criminals. In general, federal officials only prosecute cases exceeding US $5000 in value. Three improvements to card security have been introduced to the more common credit card networks but none has proven to help reduce credit card fraud so far. First, the on-line verification system used by merchants is being enhanced to require a 4 digit Personal Identification Number (PIN) known only to the card holder. Second, the cards themselves are being replaced with similar-looking tamper-resistant smart cards which are intended to make forgery more difficult. The majority of smartcard (IC card) based credit cards comply with the EMV (Europay MasterCard Visa) standard. Third, an additional 3 or 4 digit code is now present on the back of most cards, for use in "card not present" transactions. See CVV2 for more information.
The way credit card owners pay off their balances has a tremendous effect on their credit history. All the information is collected by credit bureaus. The credit information stays on the credit report, depending on the jurisdiction and the situation, for 1, 2, 5, 7 or even 10 years after the debt is repaid.
Tuesday, March 25, 2008
What are the APRs?
The annual percentage rate--APR--is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate.
Multiple APRsA single credit card may have several APRs:
One APR for purchases, another for cash advances, and yet another for balance transfers. The APRs for cash advances and balance transfers often are higher than the APR for purchases (for example, 14% for purchases, 18% for cash advances, and 19% for balance transfers). Tiered APRs. Different rates are applied to different levels of the outstanding balance (for example, 16% on balances of $1–$500 and 17% on balances above $500). A penalty APR. The APR may increase if you are late in making payments. For example, your card agreement may say, “If your payment arrives more than ten days late two times within a six-month period, the penalty rate will apply.” An introductory APR. A different rate will apply after the introductory rate expires. A delayed APR. A different rate will apply in the future. For example, a card may advertise that there is “no interest until next March.” Look for the APR that will be in effect after March.
If you carry over a part of your balance from month to month, even a small difference in the APR can make a big difference in how much you will pay over a year.
Multiple APRsA single credit card may have several APRs:
One APR for purchases, another for cash advances, and yet another for balance transfers. The APRs for cash advances and balance transfers often are higher than the APR for purchases (for example, 14% for purchases, 18% for cash advances, and 19% for balance transfers). Tiered APRs. Different rates are applied to different levels of the outstanding balance (for example, 16% on balances of $1–$500 and 17% on balances above $500). A penalty APR. The APR may increase if you are late in making payments. For example, your card agreement may say, “If your payment arrives more than ten days late two times within a six-month period, the penalty rate will apply.” An introductory APR. A different rate will apply after the introductory rate expires. A delayed APR. A different rate will apply in the future. For example, a card may advertise that there is “no interest until next March.” Look for the APR that will be in effect after March.
If you carry over a part of your balance from month to month, even a small difference in the APR can make a big difference in how much you will pay over a year.
How will you use your credit card?
1.If you expect to always pay your monthly bill in full--and other features such as frequent flyer miles don’t interest you--your best choice may be a card that has no annual fee and offers a longer grace period.2.If you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).3.If you expect to use your card to get cash advances, you’ll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards charge a higher APR for cash advances than for purchases.
Thursday, March 20, 2008
Operating costs
This is the cost of running the credit card portfolio, including everything from paying the executives who run the company to printing the plastics, to mailing the statements, to running the computers that keep track of every cardholder's balance, to taking the many phone calls which cardholders place to their issuer, to protecting the customers from fraud rings. Depending on the issuer, marketing programs are also a significant portion of expenses.
Interest expenses
Banks generally borrow the money they then lend to their customers. As they receive very low-interest loans from other firms, they may borrow as much as their customers require, while lending their capital to other borrowers at higher rates. If the card issuer charges 15% on money lent to users, and it costs 5% to borrow the money to lend, and the balance sits with the cardholder for a year, the issuer earns 10% on the loan. This 5% difference is the "interest expense" and the 10% is the "net interest spread".
Profits and losses
In recent times, credit card portfolios have been very profitable for banks, largely due to the booming economy of the late nineties. However, in the case of credit cards, such high returns go hand in hand with risk, since the business is essentially one of making unsecured (uncollateralized) loans, and thus dependent on borrowers not to default in large numbers.
Security
Credit card security is based on privacy of the actual credit card number. This means that whenever a person other than the card owner reads the number, security is potentially compromised. Since this happens most of the time when a transaction is made, security is low. However, a user with access to just the number can only make certain types of transactions. Merchants will often accept credit card numbers without extra verification for mail order, but then the delivery address will be recorded, so the thief must make sure he can have the goods delivered to an anonymous address (i.e. not his own) and collect them without being detected. Some merchants will accept a credit card number for in-store purchases, whereupon access to the number allows easy fraud, but many require the card itself to be present, and require a signature. Thus, a stolen card can be cancelled, and if this is done quickly, no fraud can take place in this way. For internet purchases, there is sometimes the same level of security as for mail order (number only) hence requiring only that the fraudster take care about collecting the goods, but often there are additional measures. The main one is to require a security PIN with the card, which requires that the thief have access to the card.
Features
As well as convenient, accessible credit, credit cards offer consumers an easy way to track expenses, which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes. Credit cards are accepted worldwide, and are available with a large variety of credit limits, repayment arrangement, and other perks (such as rewards schemes in which points earned by purchasing goods with the card can be redeemed for further goods and services or credit card cashback).
Prepaid credit cards
A prepaid credit card is not a credit card,as no credit is offered by the card issuer: the card-holder spends money which has been "stored" via a prior deposit by the card-holder or someone else, such as a parent or employer. However, it carries a credit-card brand (Visa, MasterCard, American Express or Discover) and can be used in similar ways just as if it were a regular credit card
Transaction steps
Authorization: In the event of a chargeback (when there's an error in processing the transaction or the cardholder disputes the transaction), the issuer returns the transaction to the acquirer for resolution. The acquirer then forwards the chargeback to the merchant, who must either accept the chargeback or contest it.
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