7.

CREDIT CARD & ATM

Prepared By: JB Gunay Credit Card-a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. 3 1 -85.60 53.98 mm (3.370 2.125 in) (3 /8 2 /8 in) in size.

1.Issuing bank logo 2. EMV chip on "smart cards - for Europay, MasterCard and VISA, a global standard for inter-operation of integrated circuit cards (IC cards or "chip cards") and IC card capable point of sale (POS) terminals and automated teller machines (ATMs), for authenticating credit and debit card transactions. 3. Hologram 4. Credit card number - A bank card number is the primary account number found on credit cards and bank cards. It has a certain amount of internal structure and shares a common numbering scheme. 5. Card brand logo 6.Expiration Date 7.Card Holder Name 8.contactless chip

1.Magnetic Stripe - a type of card capable of storing data by modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material on the card. - sometimes called swipe card or magstripe, is read by physical contact and swiping past a magnetic reading head. -Uses POS machine that require telephone line as a connectivity to the host

2.Signature Strip 3.Card Security Code - providing increased protection against credit card fraud. CVV2 or CVC2. This CSC (also known as a CCID or Credit Card ID) is often asked for by merchants for them to secure card not present transactions occurring over the Internet, by mail, fax or over the phone.

Smart Card-Powerful off-line transaction, more robust,more data,more resistant to criminal attack Players of Credit Card Industry: 1. CARDHOLDER- person who a. 1a. Transactor- pays outstanding balances in full on the due data. b. 1b. Revolver- does not pay in full on the due data. (deferred) 2. CREDIT CARD ISSUER issuer of the card; will finance/advance funds to pay for outstanding balances and latter. a. Revenue : Cardholder Interest, Finance Charges, Merchant Discount, Annual Fee, Registration b. Fee, Renewal Fee, Lost Card Replacement Fee, Past due Charges 3. TRANSACTION CLEARING ORAGANIZATION Acts as clearinghouses for transaction purposes. -A clearinghouse can check if the customer has a sufficient available credit line to cover the purchase.(NETWORK JOINT VENTURES) a. Primary purpose to run the network efficiently so that transactions can be conducted successfully and rapidly to the benefit of its member-financial institutions. b. REVENUE from membership dues / fees to cover their costs. (VISA, Master Card) 4. RETAILER (MERCHANT) from whom the cardholder makes purchases. (restaurants, department stores, hotels etc. ) 5. ACQUIRER - the bank that services the transactions of the merchant. Acquirers have the followin functions:

Networks of Credit Card: 1. 2. 3. 4. 5. Master Visa American Express-most sophisticated Diners Club Cirrus

Philippine Credit Card Sector 1990s Php 15.3 Billion gross billings locally issued. 1997 php Php. 71.2 41 Billion Services of Credit Card Security Reward Points Low Interest rates High Credit Limits Easy Application Process Waived Annual Fees International Access Problems & Solutions 1. Collection-Collecting Agent, Notice of unpaid dues, go after the employer. 2. Fraud-Hologram, a security feature

Automated Teller Machine-Unmanned electronic device that performs basi teller functions, such as accepting deposits, cash withdrawals, account transfers, loan payments, and account balance. -Invented by IBM, the first ATM was introduced in December 1972 at Lloyds Bank in the UK. However, There is a Plaque on Barclays Bank in Enfield Town, North london stating that the first ATM (In the world) was installed there on the 27th June 1967. ATM usage fees-these fees are charged solely to users who are not customers of the bank where the ATM is installed; in other cases, they apply to all users. Maintaining Balance-amount of money that can be withdrawn Interbank networks -enabling people to withdraw and deposit money from machines not belonging to the bank where they have their account or in the country where their accounts are held (enabling cash withdrawals in local currency Problems & Solutions 1. Fraud-Cryptoprocesso 2. Theft-Alarm sensors, security cameras and security guards, max limit of amount to be withdrawn Supplementary cards-applicants must be at least 13 years old. Supplementary applicants may be any of the following: Relatives of the principal applicant defined as spouse, children, children-in-law, parents, parentsin-law, siblings and siblings-in-law. Non-relatives