Electronic bill payment is a feature of online banking, similar in its effect to a giro, allowing a depositor to send money from his demand account to a creditor or vendor such as a public utility or a department store to be credited against a specific account. The payment is optimally executed electronically in real time, though some financial institutions or payment services will wait until the next business day to send out the payment. The bank can usually also generate and mail a paper cheque or banker's draft to a creditor who is not set up to receive electronic payments.
Electronic billing can also feature invoices sent by e-mail or viewed on a secure web site (with notices of new invoices being sent by e-mail).
Most large banks also offer various convenience features with their electronic bill payment systems, such as the ability to schedule payments in advance to be made on a specified date, the ability to manage payments from any computer with a web browser, and various options for searching one's recent payment history: when did I last pay Company X? To whom did I make my most recent payment? In many cases one can also integrate the electronic payment data with accounting or personal finance software.
Peer-to-peer payment systems are extremely popular. The best and most widely known example is PayPal. PayPal allows you to pay for just about anything online as long as the seller also has a PayPal account. Many online sellers use PayPal such as 75% of eBay sellers, overstock.com, ritzcamera.com, and Walgreens.com (Traver, 2004).[citation needed] PayPal is also sometimes used to pay for personal debts in situations where both parties have an account.
Electronic bill payment and presentment (EBPP) includes an electronic bill payment system (EBPS). Electronic bill payment and presentment is “the electronic bill presentment to the consumer and the electronic initiation of payment by the consumer” (Alexandria Andreeff). This was done completely by postal mail before the internet. Sending bills electronically via the internet is much faster and cheaper though. Although this technology was available before December in 1998, only 26.2% of U.S. households had internet access at that time according to the U.S. Department of Commerce in 2000 (Alexandria Andreeff). By August 2000, electronic bill payment and presentment systems started to dramatically increase in popularity because 41.5% of U.S. households had internet access by then according to the U.S. Department of Commerce in 2000 (Alexandria Andreeff). In this model, the one who is charging the consumer, notifies the customer (usually) through e-mail (Alexandria Andreeff). The customer is then responsible to log on to the biller’s website to pay the bill (Alexandria Andreeff).
Thursday, March 12, 2009
Embed Card System
The Embed Card System is a total operating solution for Family Entertainment Centers (FEC). Replacing tokens and currency, the Embed Card System allows for cashless operation of vending, redemption and video games by using a swipe card to deduct value for each game played. This system also provides admission control for any FEC attractions (e.g., Mini Golf, Go Karts, Laser Tag, etc.) by providing the guest a card to swipe on a reader (see Color-Glo swiper information below). If the FEC plans to have retail, food or beverage sales, the Embed Card System can be used as a stand-alone Point of Sale system, or integrated to work with other Point of Sale systems such as Micros and Aloha. Fully customizable and touch-screen driven, the Embed Point of Sale system allows for sales of play cards, admissions, food and beverage, package sales, retail merchandise, and party/group reservations. A valuable benefit of the system is the ability to create detailed reports which allow for in-depth and comprehensive marketing planning, as well as monitoring staff usage and activity.
With a card system, the FEC guests are encouraged to “Load and Go”; load a value onto a magnetic stripe card and go to any game or attraction and swipe to play. When a guest swipes their card, their value balance is checked, then a play on a game or admission to an attraction is issued. Games issue redemption tickets straight to the card instead of using paper tickets, eliminating the use of ticket counter machines. The guest is encouraged to keep the card for future use; all cash and ticket values are stored in the system and accessed via the swipe card. Cards that are lost can be reissued with the same credit as when it was reported lost.
Debit card systems, such as the Embed Card System, allow operators to offer differential pricing for regular customers, timed-play sessions, and VIP programs that promote repeat visits.
With a card system, the FEC guests are encouraged to “Load and Go”; load a value onto a magnetic stripe card and go to any game or attraction and swipe to play. When a guest swipes their card, their value balance is checked, then a play on a game or admission to an attraction is issued. Games issue redemption tickets straight to the card instead of using paper tickets, eliminating the use of ticket counter machines. The guest is encouraged to keep the card for future use; all cash and ticket values are stored in the system and accessed via the swipe card. Cards that are lost can be reissued with the same credit as when it was reported lost.
Debit card systems, such as the Embed Card System, allow operators to offer differential pricing for regular customers, timed-play sessions, and VIP programs that promote repeat visits.
Embed International
Embed International is a supplier and manufacturer of debit card systems including management applications for the amusement, leisure and retail industries. The Embed Card System is now used throughout the world at over 350 operating locations in 18 countries including Australia and the United States. Embed was started by and maintains close ties to the Leisure and Allied Industries Group (LAI). LAI builds amusement machines and operates centers throughout Asia, Australia and New Zealand.
Embed operates out of offices in Perth (Australia), Dallas (USA), and Dubai (UAE). Embed currently employs approximately 35 people worldwide. Their tasks include designing the Embed Card System hardware, writing the Embed Card System software application, installing the system at customer sites and providing customer support.
Embed operates out of offices in Perth (Australia), Dallas (USA), and Dubai (UAE). Embed currently employs approximately 35 people worldwide. Their tasks include designing the Embed Card System hardware, writing the Embed Card System software application, installing the system at customer sites and providing customer support.
Eurocheque
The Eurocheque was a type of cheque used in Europe that was accepted across national borders and which could be written in a variety of currencies.
Eurocheques were originally introduced in 1969 as an alternative to the traveler's cheque and for international payments for goods and services. They were rapidly adopted for domestic use in a number of countries, to the extent that their use for international payment rarely accounted for more than 5% of total Eurocheque transactions. The charges for clearing Eurocheques were substantially lower than those for cross-border use of domestic cheques.
Although still accepted as payment by a few bodies, the practice of issuing Eurocheques ceased on 1 January 2002, following the decision to withdraw the Eurocheque guarantee. This was, coincidentally, the same date that the euro currency was introduced. Despite the similarity of name, the Eurocheque had no connection with the currency.
Eurocheques were particularly popular in German-speaking countries, where they were often issued as standard domestic cheques. They usually had to be accompanied by a cheque guarantee card in order to be accepted in payment at a point of sale. The Eurocheque guarantee card also had the functionality of an ATM card. In some countries, such as Austria and Germany, virtually all Eurocheque cards were co-branded with the logo of the respective domestic debit card system and were actually debit cards. After its phase-out, virtually all of these Eurocheque cards were replaced by Maestro cards. Therefore, Maestro is very often considered to be the successor to the Eurocheque system.
The decision to end the issuing of Eurocheques was taken as increasing numbers of retailers and banks started to decline payment by Eurocheque, and as the use of cash machines and credit cards by international travellers grew within Europe. The relatively high cost of processing Eurocheques, together with the costs resulting from fraud, were also among the factors. In advance of the move, the European Commission expressed concern that "the benefits of the existing eurocheque system, in particular its standardised cheque format and its clearing facilities in all European countries should not be lost.
Eurocheques were originally introduced in 1969 as an alternative to the traveler's cheque and for international payments for goods and services. They were rapidly adopted for domestic use in a number of countries, to the extent that their use for international payment rarely accounted for more than 5% of total Eurocheque transactions. The charges for clearing Eurocheques were substantially lower than those for cross-border use of domestic cheques.
Although still accepted as payment by a few bodies, the practice of issuing Eurocheques ceased on 1 January 2002, following the decision to withdraw the Eurocheque guarantee. This was, coincidentally, the same date that the euro currency was introduced. Despite the similarity of name, the Eurocheque had no connection with the currency.
Eurocheques were particularly popular in German-speaking countries, where they were often issued as standard domestic cheques. They usually had to be accompanied by a cheque guarantee card in order to be accepted in payment at a point of sale. The Eurocheque guarantee card also had the functionality of an ATM card. In some countries, such as Austria and Germany, virtually all Eurocheque cards were co-branded with the logo of the respective domestic debit card system and were actually debit cards. After its phase-out, virtually all of these Eurocheque cards were replaced by Maestro cards. Therefore, Maestro is very often considered to be the successor to the Eurocheque system.
The decision to end the issuing of Eurocheques was taken as increasing numbers of retailers and banks started to decline payment by Eurocheque, and as the use of cash machines and credit cards by international travellers grew within Europe. The relatively high cost of processing Eurocheques, together with the costs resulting from fraud, were also among the factors. In advance of the move, the European Commission expressed concern that "the benefits of the existing eurocheque system, in particular its standardised cheque format and its clearing facilities in all European countries should not be lost.
Carte Bleue
Carte Bleue ("Blue Card") is a major debit card payment scheme operating in France. The system has now been integrated into a wider scheme called CB or Carte bancaire ("banking card"). All Carte Bleue cards are part of CB, but not all CB cards are Carte Bleue.
The system is national, and pure Carte Bleue cards do not operate outside of France. However, it is possible and commonplace to get Carte Bleue VISA card that operates outside of France. Carte Bleue, properly said, is the local affiliate of VISA. Some cards also double with the electronic cash system Moneo.
Carte Bleue started in 1967, associating six French banks (BNP, CCF, Crédit du Nord, CIC, Crédit Lyonnais, and Société Générale. Combined Visa cards exist since 1973 under the name Carte Bleue Internationale, changing to Carte Bleue Visa in 1976[1]).
From 1992 on, all Cartes Bleues / CB have been smart cards. When one uses a Carte Bleue at a French merchant, one has to type the PIN of the card, and a microchip on the card verifies and authenticates the transaction. Only some very limited transactions, such as small autoroute tolls, are paid without PIN. Since automatic teller machines also check for the PIN, this measure strongly reduces the incentive to steal Cartes Bleues, since the cards are essentially useless without the PIN (though one may try using the card number for mail-order or e-retailing). Foreign cards without microchips can still be used at French merchants, with the usual procedure of swiping the magnetic stripe and signing the receipt.
In 2003, the Cartes Bleues / CB started to move on to the international standard EMV for smart chips. They may thus be used in British smart card readers.
A minority of Cartes Bleues are credit cards tied to credit lines.
The system is national, and pure Carte Bleue cards do not operate outside of France. However, it is possible and commonplace to get Carte Bleue VISA card that operates outside of France. Carte Bleue, properly said, is the local affiliate of VISA. Some cards also double with the electronic cash system Moneo.
Carte Bleue started in 1967, associating six French banks (BNP, CCF, Crédit du Nord, CIC, Crédit Lyonnais, and Société Générale. Combined Visa cards exist since 1973 under the name Carte Bleue Internationale, changing to Carte Bleue Visa in 1976[1]).
From 1992 on, all Cartes Bleues / CB have been smart cards. When one uses a Carte Bleue at a French merchant, one has to type the PIN of the card, and a microchip on the card verifies and authenticates the transaction. Only some very limited transactions, such as small autoroute tolls, are paid without PIN. Since automatic teller machines also check for the PIN, this measure strongly reduces the incentive to steal Cartes Bleues, since the cards are essentially useless without the PIN (though one may try using the card number for mail-order or e-retailing). Foreign cards without microchips can still be used at French merchants, with the usual procedure of swiping the magnetic stripe and signing the receipt.
In 2003, the Cartes Bleues / CB started to move on to the international standard EMV for smart chips. They may thus be used in British smart card readers.
A minority of Cartes Bleues are credit cards tied to credit lines.
Interac
Interac Association is a Canadian organization linking enterprises that have proprietary networks so that they may communicate with each other for the purpose of exchanging electronic financial transactions. The Association was founded in 1984 as a cooperative venture between five financial institutions: Royal Bank of Canada, CIBC, Scotiabank, Toronto-Dominion Bank, and Desjardins.
By 2005, there were over 80 member organizations and there were over 51,000 Automated Banking Machines that can be accessed through the Interac network. In Canada, the word Interac is often used as a synonym for debit card.
By 2005, there were over 80 member organizations and there were over 51,000 Automated Banking Machines that can be accessed through the Interac network. In Canada, the word Interac is often used as a synonym for debit card.
Solo (debit card)
Solo is a debit card in the United Kingdom. It is a sister to the Maestro debit card. Solo was launched in 1997 for use on deposit accounts, as well as by customers who do not qualify for a Switch (now Maestro) card on current accounts.
Solo is issued as a multifunction cash card by NatWest and The Royal Bank of Scotland to customers over the age of 11 and by HSBC Bank (formerly Midland Bank) to customers over the age of 13. Like its main rival, Visa Electron, Solo cards require all transactions receive electronic authorisation from the issuing bank. Such authorisation will not be given if there are insufficient cleared funds in the cardholder's account. Upon successful authorization, the funds are either immediately transferred or placed on hold for later transfer.
Acceptance is not as widespread as Maestro, but has increased substantially in recent years. Solo cards usually function as Maestro for use abroad.
Solo cards are linked to the Switch processing system (now re-branded as Maestro); however, some merchants differentiate between Solo and Switch through their numbering scheme to prevent under 18s from purchasing online. Due to their availability to minors, they can be used as a simple age-vetting mechanism; for example, when online grocers Ocado accepted Solo, they refused to sell razor blades or alcoholic beverages to those paying with the card (the service no longer explicitly accepts Solo, however it does not check for Solo card numbers if Switch is selected as the payment method).
Solo cards are also issued to people with a bad credit history to reduce the liability for the issuing bank.
Solo is issued as a multifunction cash card by NatWest and The Royal Bank of Scotland to customers over the age of 11 and by HSBC Bank (formerly Midland Bank) to customers over the age of 13. Like its main rival, Visa Electron, Solo cards require all transactions receive electronic authorisation from the issuing bank. Such authorisation will not be given if there are insufficient cleared funds in the cardholder's account. Upon successful authorization, the funds are either immediately transferred or placed on hold for later transfer.
Acceptance is not as widespread as Maestro, but has increased substantially in recent years. Solo cards usually function as Maestro for use abroad.
Solo cards are linked to the Switch processing system (now re-branded as Maestro); however, some merchants differentiate between Solo and Switch through their numbering scheme to prevent under 18s from purchasing online. Due to their availability to minors, they can be used as a simple age-vetting mechanism; for example, when online grocers Ocado accepted Solo, they refused to sell razor blades or alcoholic beverages to those paying with the card (the service no longer explicitly accepts Solo, however it does not check for Solo card numbers if Switch is selected as the payment method).
Solo cards are also issued to people with a bad credit history to reduce the liability for the issuing bank.
Switch (debit card)
Switch is a former debit card in the United Kingdom, now re-branded as Maestro. It was a sister to the Solo debit card.
Switch was launched in 1988 by Midland Bank, National Westminster Bank and the Royal Bank of Scotland as a multifunction cheque guarantee and cash card. The brand was merged with Maestro, an international debit card brand owned by MasterCard Worldwide, in 2002. This merger has been referred to as the "penguin wedding," with distinctive advertisements of penguins in different international settings created by Joel Veitch.
The merger was also intended to increase the acceptance of foreign Maestro cards in the UK. However, despite the Maestro brand name, transactions in the UK are still processed by Switch Card Services Limited. Consequently many retailers who advertise that they accept Maestro can only accept UK-issued cards, i.e. former Switch cards. This situation can cause some confusion for visitors to the UK who may have their Maestro cards declined at the point of sale.
Switch/Maestro cards issued by certain banks, notably the HSBC group, carry an issue number on the bottom of the card corresponding to the number of times a card has been issued on a particular account. This is usually because the current account number the card is linked to actually forms a large part of the card number, and therefore the card number cannot be readily changed in case of loss or the card expiring.
Switch was launched in 1988 by Midland Bank, National Westminster Bank and the Royal Bank of Scotland as a multifunction cheque guarantee and cash card. The brand was merged with Maestro, an international debit card brand owned by MasterCard Worldwide, in 2002. This merger has been referred to as the "penguin wedding," with distinctive advertisements of penguins in different international settings created by Joel Veitch.
The merger was also intended to increase the acceptance of foreign Maestro cards in the UK. However, despite the Maestro brand name, transactions in the UK are still processed by Switch Card Services Limited. Consequently many retailers who advertise that they accept Maestro can only accept UK-issued cards, i.e. former Switch cards. This situation can cause some confusion for visitors to the UK who may have their Maestro cards declined at the point of sale.
Switch/Maestro cards issued by certain banks, notably the HSBC group, carry an issue number on the bottom of the card corresponding to the number of times a card has been issued on a particular account. This is usually because the current account number the card is linked to actually forms a large part of the card number, and therefore the card number cannot be readily changed in case of loss or the card expiring.
MasterCard
MasterCard Worldwide (NYSE: MA) is a multinational corporation based in Purchase, New York, United States. Throughout the world, its principal business is to process payments between the banks of merchants and the banks of purchasers that use its "MasterCard" brand debit and credit cards to make purchases. MasterCard Worldwide has been a publicly traded company since 2006. Prior to its initial public offering, MasterCard Worldwide was a membership organization owned by the 25,000+ financial institutions that issue its card.
It was originally created in 1966 by United California Bank (later First Interstate Bank and subsequently merged into Wells Fargo Bank), Wells Fargo, Crocker National Bank (also subsequently merged into Wells Fargo), and the Bank of California (subsequently merged into the Union Bank of California) as a competitor to the BankAmericard issued by Bank of America, which is now the VISA credit card and issued by Visa Inc.
It was originally created in 1966 by United California Bank (later First Interstate Bank and subsequently merged into Wells Fargo Bank), Wells Fargo, Crocker National Bank (also subsequently merged into Wells Fargo), and the Bank of California (subsequently merged into the Union Bank of California) as a competitor to the BankAmericard issued by Bank of America, which is now the VISA credit card and issued by Visa Inc.
Visa Inc.
Visa Inc. (NYSE: V), commonly referred to as VISA (Visa International Service Association), is a multinational corporation based in San Francisco, California, USA. The company operates the world's largest retail electronic payment network, managing payments among financial institutions, merchants, consumers, businesses and government entities. Before Visa Inc's IPO in early 2008, it was operated as a cooperative of some 21,000 financial institutions that issued and marketed Visa products including credit and debit cards.
In 2006, according to The Nielson Report, Visa held 44% of the credit card market share and 48% of the debit card market share in the United States.
In 2006, according to The Nielson Report, Visa held 44% of the credit card market share and 48% of the debit card market share in the United States.
Credit or Debit?
For consumers, the difference between a "debit card" and a "credit card" is that the debit card deducts the balance from a deposit account, like a checking account, whereas the credit card allows the consumer to spend money on credit to the issuing bank. In other words, a debit card uses the money you have and a credit card uses the money you don't have.
In some countries: When a merchant asks "credit or debit?" the answer determines whether they will use a merchant account affiliated with one or more traditional credit card associations (Visa, MasterCard, Discover, or American Express) or an interbank network typically used for debit and ATM cards, like Plus, Pulse, Cirrus, or Maestro.
In other countries: When a merchant asks "credit or debit?" the answer determines whether the transaction will be handled as a credit transaction or as a debit transaction. In the former case, the merchant is more likely than in the latter case to have to pay a fee defined by fixed percentage to the merchant's bank. In both cases, the merchant may have to pay a fixed amount to the bank. In either case, the transaction will go through a major credit/debit network (such as Visa, MasterCard, Visa Electron or Maestro). In either case, the transaction may be conducted in either online or offline mode, although the card issuing bank may choose to block transactions made in offline mode. This is always the case with Visa Electron transactions, usually the case with Maestro transactions and rarely the case with Visa or MasterCard transactions.
In yet other countries: A merchant will only ask for "credit or debit?" if the card is a combined credit+debit card. If the payee chooses "credit", the credit balance will be debited the amount of the purchase; if the payee chooses "debit", the bank account balance will be debited the amount of the purchase.
This may be confusing because "debit cards" which are linked directly to a checking account are sometimes dual-purpose, so that they can be used seamlessly in place of a credit card, and can be charged by merchants using the traditional credit networks. There are also "pre-paid credit cards" which act like a debit card but can only be charged using the traditional "credit" networks. The card itself does not necessarily indicate whether it is connected to an existing pile of money, or merely represents a promise to pay later.
In some countries: The "debit" networks typically require that purchases be made in person and that a personal identification number be supplied. The "credit" networks allow cards to be charged with only a signature, and/or picture ID.
In other countries: Identification typically requires the entering of a personal identification number or signing a piece of paper. This is regardless of whether the card network in use mostly is used for credit transactions or for debit transactions. In the event of an offline transaction (regardless of whether the offline transaction is a credit transaction or a debit transaction), identification using a PIN is impossible, so only signatures on pieces of paper work.
In some countries: Consumer protections also vary, depending on the network used. Visa and MasterCard, for instance, prohibit minimum and maximum purchase sizes, surcharges, and arbitrary security procedures on the part of merchants. Merchants are usually charged higher transaction fees for credit transactions, since debit network transactions are less likely to be fraudulent. This may lead them to "steer" customers to debit transactions. Consumers disputing charges may find it easier to do so with a credit card, since the money will not immediately leave their control. Fraudulent charges on a debit card can also cause problems with a checking account because the money is withdrawn immediately and may thus result in an overdraft or bounced checks. In some cases debit card-issuing banks will promptly refund any disputed charges until the matter can be settled, and in some jurisdictions the consumer liability for unauthorized charges is the same for both debit and credit cards.
In other countries: In India and Sweden, the consumer protection is the same regardless of the network used. Some banks set minimum and maximum purchase sizes, mostly for online-only cards. However, this has nothing to do with the card networks, but rather with the bank's judgement of the person's age and credit records. Any fees that the customers have to pay to the bank are the same regardless of whether the transaction is conducted as a credit or as a debit transaction, so there is no advantage for the customers to choose one transaction mode over another. Shops may add surcharges to the price of the goods or services in accordance with laws allowing them to do so. Banks consider the purchases as having been made at the moment when the card was swiped, regardless of when the purchase settlement was made. Regardless of which transaction type was used, the purchase may result in an overdraft because the money is considered to have left the account at the moment of the card swiping.
In some countries: When a merchant asks "credit or debit?" the answer determines whether they will use a merchant account affiliated with one or more traditional credit card associations (Visa, MasterCard, Discover, or American Express) or an interbank network typically used for debit and ATM cards, like Plus, Pulse, Cirrus, or Maestro.
In other countries: When a merchant asks "credit or debit?" the answer determines whether the transaction will be handled as a credit transaction or as a debit transaction. In the former case, the merchant is more likely than in the latter case to have to pay a fee defined by fixed percentage to the merchant's bank. In both cases, the merchant may have to pay a fixed amount to the bank. In either case, the transaction will go through a major credit/debit network (such as Visa, MasterCard, Visa Electron or Maestro). In either case, the transaction may be conducted in either online or offline mode, although the card issuing bank may choose to block transactions made in offline mode. This is always the case with Visa Electron transactions, usually the case with Maestro transactions and rarely the case with Visa or MasterCard transactions.
In yet other countries: A merchant will only ask for "credit or debit?" if the card is a combined credit+debit card. If the payee chooses "credit", the credit balance will be debited the amount of the purchase; if the payee chooses "debit", the bank account balance will be debited the amount of the purchase.
This may be confusing because "debit cards" which are linked directly to a checking account are sometimes dual-purpose, so that they can be used seamlessly in place of a credit card, and can be charged by merchants using the traditional credit networks. There are also "pre-paid credit cards" which act like a debit card but can only be charged using the traditional "credit" networks. The card itself does not necessarily indicate whether it is connected to an existing pile of money, or merely represents a promise to pay later.
In some countries: The "debit" networks typically require that purchases be made in person and that a personal identification number be supplied. The "credit" networks allow cards to be charged with only a signature, and/or picture ID.
In other countries: Identification typically requires the entering of a personal identification number or signing a piece of paper. This is regardless of whether the card network in use mostly is used for credit transactions or for debit transactions. In the event of an offline transaction (regardless of whether the offline transaction is a credit transaction or a debit transaction), identification using a PIN is impossible, so only signatures on pieces of paper work.
In some countries: Consumer protections also vary, depending on the network used. Visa and MasterCard, for instance, prohibit minimum and maximum purchase sizes, surcharges, and arbitrary security procedures on the part of merchants. Merchants are usually charged higher transaction fees for credit transactions, since debit network transactions are less likely to be fraudulent. This may lead them to "steer" customers to debit transactions. Consumers disputing charges may find it easier to do so with a credit card, since the money will not immediately leave their control. Fraudulent charges on a debit card can also cause problems with a checking account because the money is withdrawn immediately and may thus result in an overdraft or bounced checks. In some cases debit card-issuing banks will promptly refund any disputed charges until the matter can be settled, and in some jurisdictions the consumer liability for unauthorized charges is the same for both debit and credit cards.
In other countries: In India and Sweden, the consumer protection is the same regardless of the network used. Some banks set minimum and maximum purchase sizes, mostly for online-only cards. However, this has nothing to do with the card networks, but rather with the bank's judgement of the person's age and credit records. Any fees that the customers have to pay to the bank are the same regardless of whether the transaction is conducted as a credit or as a debit transaction, so there is no advantage for the customers to choose one transaction mode over another. Shops may add surcharges to the price of the goods or services in accordance with laws allowing them to do so. Banks consider the purchases as having been made at the moment when the card was swiped, regardless of when the purchase settlement was made. Regardless of which transaction type was used, the purchase may result in an overdraft because the money is considered to have left the account at the moment of the card swiping.
Debit card
A debit card (also known as a bank card or check card) is a plastic card which provides an alternative payment method to cash when making purchases. Functionally, it can be called an electronic check, as the funds are withdrawn directly from either the bank account (often referred to as a check card), or from the remaining balance on the card. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card.
The use of debit cards has become widespread in many countries and has overtaken the cheque, and in some instances cash transactions by volume. Like credit cards, debit cards are used widely for telephone and Internet purchases.
Debit cards can also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a cheque guarantee card. Merchants can also offer "cashback"/"cashout" facilities to customers, where a customer can withdraw cash along with their purchase.
The use of debit cards has become widespread in many countries and has overtaken the cheque, and in some instances cash transactions by volume. Like credit cards, debit cards are used widely for telephone and Internet purchases.
Debit cards can also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a cheque guarantee card. Merchants can also offer "cashback"/"cashout" facilities to customers, where a customer can withdraw cash along with their purchase.
Interbank network
An interbank network, also known as an ATM consortium or ATM network, is a computer network that connects the ATMs of different banks and permits these ATMs to interact with the ATM cards of non-native banks.
While interbank networks provide capabilities for all ATM cards within the same network to use other banks' ATMs that belong to the same network, the services vary. For instance, when a person uses their ATM card at an ATM that does not belong to their bank, the basic services, such as balance inquiries and withdrawals, are usually available. However, special services, such as the purchase of mobile phone airtime, are usually not accessible to ATM cardholders of banks other than the ATM cardholders of the acquirer (the bank that owns the ATM). Furthermore, many banks will charge a fee to users of cards that do not come from their own bank (in addition to any fees imposed by the bank of the card the person is using).
Interbank networks are convenient because people can access the ATMs of other banks who are members of the network when their own bank's ATM is unavailable. Such is especially convenient for travelers traveling abroad, where multinational interbank networks, like PLUS or Cirrus, are usually available.
Interbank networks also, through different means, permit the use of ATM cards at a point of sale through the use of a special EFTPOS terminal where ATM cards are treated as debit cards.
While interbank networks provide capabilities for all ATM cards within the same network to use other banks' ATMs that belong to the same network, the services vary. For instance, when a person uses their ATM card at an ATM that does not belong to their bank, the basic services, such as balance inquiries and withdrawals, are usually available. However, special services, such as the purchase of mobile phone airtime, are usually not accessible to ATM cardholders of banks other than the ATM cardholders of the acquirer (the bank that owns the ATM). Furthermore, many banks will charge a fee to users of cards that do not come from their own bank (in addition to any fees imposed by the bank of the card the person is using).
Interbank networks are convenient because people can access the ATMs of other banks who are members of the network when their own bank's ATM is unavailable. Such is especially convenient for travelers traveling abroad, where multinational interbank networks, like PLUS or Cirrus, are usually available.
Interbank networks also, through different means, permit the use of ATM cards at a point of sale through the use of a special EFTPOS terminal where ATM cards are treated as debit cards.
Wednesday, March 11, 2009
Building society
A building society is a financial institution, owned by its members, that offers banking and other financial services, especially mortgage lending.
The term building society first arose in the 19th century, in the United Kingdom, from co-operative savings groups: by pooling savings, usually in terminating deposits, members could buy or build their own homes.
In the UK today building societies actively compete with banks for most banking services, especially mortgage lending and deposit accounts. At the start of 2008, there were 59 building societies in the UK (listed below) with total assets exceeding £360 billion. Every building society in the UK is a member of the Building Societies Association. The number of societies in the UK has declined by a tenth during 2008 due to a series of mergers brought about, to a large extent, by the consequences of the financial crisis of 2007-2008.
The term building society first arose in the 19th century, in the United Kingdom, from co-operative savings groups: by pooling savings, usually in terminating deposits, members could buy or build their own homes.
In the UK today building societies actively compete with banks for most banking services, especially mortgage lending and deposit accounts. At the start of 2008, there were 59 building societies in the UK (listed below) with total assets exceeding £360 billion. Every building society in the UK is a member of the Building Societies Association. The number of societies in the UK has declined by a tenth during 2008 due to a series of mergers brought about, to a large extent, by the consequences of the financial crisis of 2007-2008.
Credit union
A credit union is a cooperative financial institution that is owned and controlled by its members, and operated for the purpose of promoting thrift, providing credit at reasonable rates, and providing other financial services to its members. Many credit unions exist to further community development or sustainable international development on a local level. Worldwide, credit union systems vary significantly in terms of total system assets and average institution asset size since credit unions exist in a wide range of sizes, ranging from volunteer operations with a handful of members to institutions with several billion dollars in assets and hundreds of thousands of members. Yet credit unions are typically smaller than banks; for example, the average U.S. credit union has $93 million in assets, while the average U.S. bank has $1.53 billion, as of 2007.
The World Council of Credit Unions (WOCCU) defines credit unions as "not-for-profit cooperative institutions. In practice however, legal arrangements vary by jurisdiction. For example in Canada credit unions are regulated as for-profit institutions, and view their mandate as earning a reasonable profit to enhance services to members and ensure stable growth. This difference in viewpoints reflects credit unions' unusual organizational structure, which attempts to solve the principal-agent problem by ensuring that the owners and the users of the institution are the same people. In any case, credit unions generally cannot accept donations and must be able to prosper in a competitive market economy.
The World Council of Credit Unions (WOCCU) defines credit unions as "not-for-profit cooperative institutions. In practice however, legal arrangements vary by jurisdiction. For example in Canada credit unions are regulated as for-profit institutions, and view their mandate as earning a reasonable profit to enhance services to members and ensure stable growth. This difference in viewpoints reflects credit unions' unusual organizational structure, which attempts to solve the principal-agent problem by ensuring that the owners and the users of the institution are the same people. In any case, credit unions generally cannot accept donations and must be able to prosper in a competitive market economy.
ATM card
An ATM card (also known as a bank card, client card, key card or cash card) is an ISO 7810 card issued by a bank, credit union or building society.
It can be used:
at an ATM for deposits, withdrawals, account information, and other types of transactions, often through interbank networks
Some ATM cards can also be used:
at a branch, as identification for in-person transactions
at merchants, for EFTPOS (point of sale) purchases
Unlike a debit card, in-store purchases or refunds with an ATM card can generally be made in person only, as they require authentication through a personal identification number or PIN. In other words, ATM cards cannot be used at merchants that only accept credit cards.
However, other types of transactions through telephone or online banking may be performed with an ATM card without in-person authentication. This includes account balance inquiries, electronic bill payments or in some cases, online purchases (see Interac Online).
In some countries, the two functions of ATM cards and debit cards are combined into a single card called a debit card or also commonly called a bank card. These are able to perform banking tasks at ATM's and also make point-of-sale transactions, both functions using a PIN. Canada's Interac and Europe's Maestro are examples of networks that link bank accounts with point-of-sale equipment.
Magnetic stripe cloning can be detected by the implementation of magnetic card reader heads and firmware that can read a signature embedded in all magnetic stripes during the card production process. This signature known as a "MagnaPrint" or "BluPrint" can be used in conjunction with common two factor authentication schemes utilized in ATM, debit/retail point-of-sale and prepaid card applications.
ATM Cleaning Cards are the primary means of cleaning ATM machines to ensure that the machine stays functioning properly.
It can be used:
at an ATM for deposits, withdrawals, account information, and other types of transactions, often through interbank networks
Some ATM cards can also be used:
at a branch, as identification for in-person transactions
at merchants, for EFTPOS (point of sale) purchases
Unlike a debit card, in-store purchases or refunds with an ATM card can generally be made in person only, as they require authentication through a personal identification number or PIN. In other words, ATM cards cannot be used at merchants that only accept credit cards.
However, other types of transactions through telephone or online banking may be performed with an ATM card without in-person authentication. This includes account balance inquiries, electronic bill payments or in some cases, online purchases (see Interac Online).
In some countries, the two functions of ATM cards and debit cards are combined into a single card called a debit card or also commonly called a bank card. These are able to perform banking tasks at ATM's and also make point-of-sale transactions, both functions using a PIN. Canada's Interac and Europe's Maestro are examples of networks that link bank accounts with point-of-sale equipment.
Magnetic stripe cloning can be detected by the implementation of magnetic card reader heads and firmware that can read a signature embedded in all magnetic stripes during the card production process. This signature known as a "MagnaPrint" or "BluPrint" can be used in conjunction with common two factor authentication schemes utilized in ATM, debit/retail point-of-sale and prepaid card applications.
ATM Cleaning Cards are the primary means of cleaning ATM machines to ensure that the machine stays functioning properly.
Monday, March 2, 2009
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