Economics
Bank Cards
Bank cards are payment cards issued by banks to their customers, allowing them to access funds in their bank accounts to make purchases or withdraw cash. These cards can be debit cards, which deduct funds directly from the user's account, or credit cards, which allow the user to borrow funds up to a certain limit. Bank cards are a key tool in facilitating electronic and cashless transactions in the modern economy.
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4 Key excerpts on "Bank Cards"
eBook - PDFMoving Money
The Future of Consumer Payments
- Robert E. Litan, Martin Neil Baily, Robert E. Litan, Martin Neil Baily(Authors)
- 2009(Publication Date)
- Brookings Institution Press(Publisher)
Having a credit card has become essential to consumers and busi-nesses, even for those who pay their bills promptly (so-called convenience Introduction 7 users) and do not use the cards for credit. In many locations, or with many vendors, credit cards serve as personal identification. In 1975, banks introduced another type of payment card, the debit card. As its name implies, the debit card immediately deducts charges from users’ bank accounts. Banks typically have coupled debit card fea-tures on their ATM cards, and many now permit credit charges as well. Debit cards historically have been far more popular outside than inside the United States, especially in Europe. But they have been rapidly gain-ing popularity here despite the fact that users cannot take advantage of the float that credit cards offer (the period between when charges are made and payment of any credit card balance is due). Apparently, many consumers prefer the discipline of spending within their means that debit cards help enforce. 2 The Internet revolution is now pushing payments increasingly into cyberspace. With Internet banking, customers no longer need to write checks to pay for many routine household expenses, or even to pay off their credit cards. With a few keystrokes on their banks’ home page, bank customers can use their computers, tethered to the Internet, to pay bills. European countries with giro systems, meanwhile, have adapted them to the online environment. The Internet also has made possible entirely new payments networks, such as PayPal, that enable individu-als to transfer funds either to other individuals or to vendors. Wireless or mobile payments technologies are the next frontier in payments. In some countries consumers can already use mobile devices such as cell phones to charge payments to their credit card accounts or to debit their bank accounts. In Japan cell phone users are charged directly for the amount of content they download from the Internet.
eBook - PDFEconomic Environment NQF2 SB
TVET FIRST
- B Serfontein(Author)
- 2013(Publication Date)
- Macmillan(Publisher)
Compare all the different pamphlets. 2. Are credit cards money? Explain your answer. Keep this assessment activity in your Portfolio of Evidence. 57 Unit 6: Money, banking and monetary policy Can you summarise the different types of money that we find in a modern economy? They are: ● cash money, which includes notes and coins issued by the central bank ● demand deposits ● short-, medium- and long-term deposits Surplus unit Deficit unit 6.4 The role of commercial banks and credit in the economy Banks serve as intermediaries between customers who save money and customers who borrow money. Depositors are customers who save money (supply money to the banking system) and are paid interest on the money that they deposit. Some banks have large branch networks. They deal directly with large numbers of customers, such as small businesses and individuals, through branches in just about every town and city in the country. These banks are called commercial banks. Other banks, such as merchant banks, deal only with large customers, such as big institutions and companies and very wealthy individuals – they do not offer ordinary branch services. The basic business of banks is to manage the relationship between risk and return. D e p o s i t s C r e d i t Assessment activity 6.4 Think about it Before you borrow money, be warned: Although credit is quite easy to obtain and convenient to use, the use of borrowed money is not free. All loans must be repaid later. When credit card loans are used, the borrower will be charged interest and other fees if the entire balance is not paid in full one month after the loan. Banks : provide services related to storing deposits and extending (granting) credit Words & Terms
Available until 8 Dec |Learn more- Mostafa Hashem Sherif(Author)
- 2003(Publication Date)
- CRC Press(Publisher)
• Private fi delity cards are issued by merchants to retain their custom-ers and offer credit facilities (with the help of credit institutions). One of the uses of these cards is to construct customers’ pro fi les of their consuming habits to focus marketing and sales campaigns. • Cards that are focused on business usages, such as the following: • Corporate cards, which allow a company to optimize the expens-es incurred by the employees during the course of their work-related activities. Money and Payment Systems 43 • Purchasing or procurement cards, which are deferred debit cards used to cover the payments made for nonrecurrent charges and small amounts. While the cardholder represents the enterprise in making the purchases, it is the enterprise account that will be debited for the sales incurred. The processing of the data relative to these cards includes the generation of management reports and accounting and fi scal reports on all operations used with this card. The protocols for bank card purchases require the intervention of several actors in addition to the buyer and the seller, in particular, the banks of each of the parties and the credit card scheme, for example, Visa or MasterCard. The merchant’s bank is called the acquiring bank because it acquires the credits, and the buyer’s bank is called the issuing bank because it issued the cards to its members that it authenticated. The bank card schemes call for the intervention of authorization servers connected to call centers whose role would be to fi lter out abusive transactions. The fi ltering process utilizes preestablished criteria, for example, whether a spending ceiling was reached, or if a large number of transactions took place in a speci fi c interval, etc. Finally, the transaction is cleared, and settlements are made among the banks by using national and international circuits for interbank exchanges.
eBook - PDFEconomics and Finance in Mauritius
A Modern Perspective
- Indranarain Ramlall(Author)
- 2017(Publication Date)
- Palgrave Macmillan(Publisher)
The idea that the credit card represents an alternate transaction medium was first discussed by Akhand and Milbourne (1986). They stated that credit cards enabled agents to maintain lower money balances and more bonds. Similarly, Duca and Whitesell (1995) studied the impact of credit cards on money demand for US households and concluded that credit card ownership triggered a downward impact on checking and money balances. Similarly, Blanchflower et al. (1998) found that credit cards unleashed decline in households’ transactions and precautionary demand for money. Yazgan and Yilmazkuday (2007) undertook an analysis on the Turkish economy, a small open economy. Their findings showed that both credit and debit cards generated a bearish impact on the demand for money. Rinaldi (2001) considered the effect of credit and debit cards, POS and ATMs on currency in circulation in Belgium to end up with a negative effect of POS terminals and ATMs while the effects of cards were found to be rather weak. In the of the Austrian cash demand, Stix (2004) dis- covered that cash demand was substantially impacted by debit card usage. Attanasio et al. (2002) assessed the demand for money in Italy between 1989 and 1995 using both firms and households data. They concluded that the demand for money of households who held an ATM card was much more elastic to the interest rate relative to households who did not possess an ATM card. Their findings entailed implications for inflation in that the welfare loss of inflation was greater for households in possession of a more sophisticated transaction technology as the latter enshrined the interest rate sensitivity of the demand for money. The negative effect of cards on currency in demand is often accounted for by the level of trans- action value. De Grauve et al. (2000) noted that the average cost of card payments hovered around 1.3% of the transaction value while it stood around 9 percent of the transaction value when cash was used.
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