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Type of bank cards and their features

Recent banking awareness ,Type of bank cards and their features.Bank cards are limited and currently there are 3 popular type of bank cards which are credit card, debit card and prepaid card. We are discussing each of the card in detail which will give you insight of the banking cards issued by banks and other financial entities which are used for various purposes. In our country, currently more stress are given on use of plastic money and cards and to reduce usage of cash transaction. However there are various work which cannot be done with the help of plastic money and we need cash for this. Let us discuss the features of each of the card in detail and after that we will differentiate between these cards to help you understand better and you can perform well at the banking exams. In bank exams, banking related questions are asked in GA section.

Types of Cards issued by bank/ financial entities

There are generally 3 types of card which are:

  1. Debit Card
  2. Credit Card
  3. Prepaid card

Debit Card (ATM Card)

Debit card is one of the most popular form of bank card issued by the bank today. It is issued to every individual and individual can use debit card for a number of purposes like withdrawing cash from ATM, purchasing goods and services etc. These are done from the balance of saving bank account of the customer which he/ she  maintains with the bank.

Credit Card:

In the case of credit cards, a customer can withdraw money beyond the amount of money present his bank account. However, there is a credit limit for the cardholder up to which the extra money can be withdrawn.Also, the withdraw money will have to be paid back as dues along with interest charges as applied by the issuer of card within a time limit. It issued by banks / other entities approved by RBI. These cards are used to purchase goods and service at E-commerce (online purchase)/ Point of Sale (POS) through recurring transaction/ Interactive Voice Response (IVR) or Mail Order Telephone Order (MOTO). In addition, it can be used domestically and internationally (provided it is enabled for international use).

Prepaid Cards:

This can be issued by any entity like shopping malls, Reliance fresh, Haldiram or even by banks. You have to deposit some money in advance and then they issue you a prepaid card which you can use to buy goods and services. The amount you deposit with the entity in cash is the amount you get in your prepaid card. It is a simple way to do away with the cash carrying requirement.

In prepaid card, you can store upto 50000/- (fifty thousand only) in the card.

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