ISO/IEC 7812 Identification cards — Identification of issuers was first published by the International Organization for Standardization (ISO) in 1989. It is the international standard that specifies "a numbering system for the identification of issuers of cards that require an issuer identification number (IIN) to operate in international, interindustry and/or intra-industry interchange", and procedures for registering IINs. ISO/IEC 7812 has two parts: Part 1: Numbering system Part 2: Application and registration procedures The registration authority of assigned IINs is the American National Standards Institute, but previously it was the American Bankers Association. An ISO/IEC 7812 number contains a single-digit major industry identifier (MII), a six-digit issuer identification number (IIN), an individual account identification number, and a single digit checksum. The major industry identifier is part of the issuer identifier number.
Costs associated with a charge card will often be a set fee for the card along with large penalties on any unpaid balances. This type of card does not allow cardholders to carry a balance from one month to the next as they would with a credit card. American Express and Diner's Club are examples of charge cards.Revolving credit. A revolving credit arrangement allows you to borrow up to your credit limit without having to reapply each time you need cash. As you repay the money you have borrowed, it is available to be borrowed again. For example, if you have a credit card with a credit limit of $1,500 and you make a purchase of $400, the amount of credit you have available is $1,100. But when you repay the $400, your credit limit goes back to $1,500 -- assuming you haven't charged anything else on the card. At any given time, your balance due may fluctuate from zero to the maximum credit limit. If you don't use the credit line in any billing cycle, no fees apply in most cases. But if you have a balance due and don't repay the full amount, finance charges are added to your next bill. Some revolving credit arrangements, such as a home equity line of credit, may have a predetermined end date, but the majority are open-ended as long as you make at least the minimum required payment on time.
Credit cards and stock market operation
PRESENTATION ON CREDIT CARDS
AND STOCK MARKET OPERATION
DIXIT MONIKA (L)
INTRODUCTION TO CREDIT
ELIGIBILITY OF GETTING
CLASSIFICATION OF CREDIT
CREDIT CARD CYCLE
SIZE OF CREDIT CARDS
TYPES OF CREDIT CARDS
TYPES OF CREDIT CARDS
TYPES OF CREDIT CARDS
Credit cards are innovative ones in the line of financial services
offered by commercial banks. Credit card culture is a old hat in
western countries. In India, it is relatively a new concept that is fast
catching on. The present trend indicates that the coming years will
witness a burgeoning growth of credit cards which will lead to a
History of credit card
The idea of credit card was first developed by Franz
Nesbitum Mc Namara, an American businessman who
found himself without cash at a weekend resort founded
Diner’s card in 1950.Right from that time, the commercial
banks and non-banking companies in USA adopted the idea
of credit card to develop their business. Barclays Bank was
the first bank to introduce credit card in 1966 in Britain. The
credit card business got momentum in 60’s a number of
banks entered in the field in a big way.
What are Credit Cards?
Pre-approved credit which can be used for the
purchase of items now and payment of them later.
• It is a plastic card having a magnetic strip, issued
by a bank or business authorizing the holder to
buy goods or services on credit. Also called
• The concept of using a credit card for was first
described in 1887 by Edward Bellamy in his
utopian novel Looking Backward.
• The size of most credit cards is 85.60 × 53.98 mm
Face or Front Side of a Credit
Logo of issuing entity.
Logo of payment processor.
Individual account identifier number.
Issuer identifier number (IIN).
Major industry identifier (MII).
Bank identification number (BIN).
Rear or Back Side of a Credit Card
The back side of a credit card shows following
Security code (card verification number).
Eligibility For Getting The Card
• Person should have a savings current account in
• His assets and liabilities on a particular date are
reported to bank.
• A statement of annual or monthly income.
• He is considered credit worthy up to certain limit
depending upon his income, assets and
Particulars Displayed On Credit
Name of the customer
16-digit card number
The VISA hologram and the VISA logo
Name of the issuing bank
OF CREDIT CARDS
Based on mode of credit
• Charge Card-A card that charges no interest but requires
the user to pay his/her balance in full upon receipt of the statement,
usually on a monthly basis. While it is similar to a credit card, the
major benefit offered by a charge card is that it has much higher,
often unlimited, spending limits.
• Revolving credit card-A line of credit where the
customer pays a commitment fee and is then allowed to use the
funds when they are needed. It is usually used for operating
purposes, fluctuating each month depending on
the customer's current cash flow needs
Based on status of credit card
• Standard Card- it is a generally issued credit card
• Business Card- (Executive cards ) it is issued to
small partnership firms , solicitors, taxconsultants ,for use by executives on their
• Gold Card-a credit card issued by credit-card
companies to favoured clients, entitling them to
high unsecured overdrafts, some insurance cover,
Based on geographical validity
• Domestic card- Cards that are valid
only in India and Nepal are called
• International Card- credit Cards that
are valid internationally are called
Based on franchise/ Tie-up
Proprietary card- A bank issues such cards under
its own brands. E.g.SBI card Cancard of Canara bank
• Master Card- this card is issued under the umbrella of
• VISA Card – it is issued by any abnk having tie up
with “VISA international”
• Domestic Tie-up Card- it is issued by any abnk
having tie up with domestic credit card brands such as
CanCard and IndCard.
Based on issuer Category
• Individual Cards- Non-corporate
cards that are issued to
• Corporate Cards- Issued to
corporate and business firms.
Credit card cycle
• A card holder makes purchase , and
present it to the merchant instead of
• The retailer will check the number on the
card , and he will tally signature of
voucher and credit card .
• Vouchers are send to banks, which in turn
reimburses it for the customer’s purchase.
To Cardholders :
Simple, convenient and can be substituted for cash
Convenient method of payment
He need not approach a bank for taking credit
Credit cards issued by leading banks are acceptable in many
• Holders can withdraw cash from any branch of major banks
• Issuer of card provides 24 hrs customer helpline available
across the world in case of any emergency.
To Merchants/ Shopkeepers :
• Guaranteed payment
• Lessens the security risk of holding the
• Overseas visitors may purchase more,
providing new market for retailer
To credit card companies/ Banks :
• Source of revenue
- Joining fee
- card renew fee
- services charges from retailers
- Interest charged to customer
To cardholders :
• Loss or stealing of card
To Merchants/ Shopkeepers :
• Retailers are required to pay a certain fee and service
charges at an agreed percentage of their credit card
To credit card companies :
• Risk of bad debt
• Risk of fraud
Sign card with signature
Do not leave cards lying around
Close unused accounts in writing and by phone, then cut up
Do not give out account number unless making purchases
Keep a list of all cards, account numbers, and phone numbers
separate from cards
Report lost or stolen cards promptly
Credit card issuers usually waive interest charges if the balance is
paid in full each month, but typically will charge full interest on the
entire outstanding balance from the date of each purchase if the
total balance is not paid.
For example, if a user had a Rs.1,000 transaction and repaid it in
full within this grace period, there would be no interest charged. If,
however, even Rs 1.00 of the total amount remained unpaid,
interest would be charged on the Rs 1,000 from the date of
purchase until the payment is received. The precise manner in
which interest is charged is usually detailed in a cardholder
agreement which may be summarized on the back of the monthly
Detriments to customers
High Interest and Bankruptcy
Inflated Pricing for All Consumers
High Interest and Bankruptcy
Credit cards with low introductory rates are limited to a
fixed term, usually between 6 and 12 months after which
a higher rate is charged. As all credit cards assess fees
and interest, some customers become so encumbered
with their credit debt service that they are driven
Inflated Pricing for All
pay interchange fees and discount fees on all credit
card transactions. However, merchants are usually
barred by their credit agreements from passing these
fees directly to the credit card customers, or from
setting a minimum transaction amount.
Size of Credit Card
The average dimensions of a credit card in inches, mm and
Credit card has a height of 2.125 inches (53.98 mm or 5.4
It has a width of 3.370 inches (85.60 mm or 8.5 cm).
Its thickness is of 0.030 inch (0.76 mm or 0.076 cm).
Its four corners (edges) are rounded with a circle of radius
(r) measuring 0.125 inch (3.18 mm or 0.318 cm).
A credit card's grace period is the time the customer has
to pay the balance before interest is assessed on the
outstanding balance. Grace periods vary, but usually
range from 20 to 50 days depending on the type of credit
card and the issuing bank. Some policies allow for
reinstatement after certain conditions are met.
Cardholder: The holder of the card used to make a purchase;
Card-issuing bank: The financial institution or other organization that
issued the credit card to the card Merchant: The individual or business
accepting credit card payments for products or services sold to the
Acquiring bank: The financial institution accepting payment for the
products or services on behalf of the merchant.
Independent sales organization: Resellers (to merchants) of the services
of the acquiring bank.
Merchant account: This could refer to the acquiring bank or the
independent sales organization, but in general is the organization that the
merchant deals with.
Credit Card association: An association of card-issuing banks such
as Visa, MasterCard, Discover, American Express, etc.
Transaction network: The system that implements the mechanics of
the electronic transactions. May be operated by an independent
company, and one company may operate multiple networks.
Affinity partner: Some institutions lend their names to an issuer to
attract customers that have a strong relationship with that institution,
and get paid a fee or a percentage of the balance for each card
issued using their name. Examples of typical affinity partners are
sports teams, universities, charities, professional organizations, and
Standard Credit Card
Most commonly used.
One is allowed to use money up
to a certain limit.
The account holder has to top up
the amount once the level of the
balance goes down.
An outstanding balance gets a
Premium Credit Card
This has a much higher bank account and
Incentives are offered in this over and above
that in a standard card.
Credit card holders are offered travel
incentives, reward points, cask back and other
rewards on the use of this card. This is also
called the Reward Credit Card.
Some examples are: airlines frequent flier
credit card, cash back credit card, automobile
manufacturers' rewards credit card.
Gold Credit Card
Gold credit cards are made for higher income
groups who also have higher credit rating. It is
a status symbol and is considered prestigious.
The features of gold credit cards are:
Cash withdrawal limit is higher
Credit limit is higher
Provides one Add-on card which can be given
to either, spouse, children or parents of the
credit card holder
Provides many privileges such as travel
insurance, reward points, cash back offers etc.
Platinum or Titanium Card
Platinum or Titanium cards are similar to
gold credit cards but they have few more
additional benefits. The additional features
may differ from bank to bank. Few common
features are listed below:
Protection against credit card loss and theft.
Protection against online fraud transactions
Protection against sickness and injury by an
There is no yearly fee
Silver Credit Card
Silver credit cards are the standard credit
cards available and most of the employed
people with 4 or 5 years’ experience can
own this type of card. The features of silver
Lower membership fees
The applicant need not be a high- salaried
person to buy silver card.
The interest rate is 0% initially between 6-9
months when transferring account balance
from one credit provider to another one.
If the credit history of the card holder is
good, the credit limit provided will be the
same as provided to other credit cards.
Rewards Credit Card
Many credit cards have reward programs that
can influence your spending.
The perks may come in the form of cash, points
or discounts. Points that accumulate, for
instance, can be traded off for free hotel stays,
merchandise, air travel car rentals and
certificates. However, these credit cards can
come with complex rules, limits and restrictions.
The key is to try to make sure that annual fees
don't end up eliminating all the benefits.
Rewards cards are typically best for people
who pay their balances off every month
Business Credit card
This credit card is available for
businessmen who have large scale, small
scale or medium scale business to look
This card is highly useful for facilitating
businessman’s training programs, travel
and entertainment programs
Prepaid Credit Card
This is directly connected to
savings account. The
payments from this card can be
made until there is balance in
Low Interest Rate Credit
Cards: This credit card is highly
useful as they will have low
Corporate Credit Card
Corporate Liability Corporate Cards are an
effective way of managing travel policies and
negotiating preferential terms with key
These cards are issued after credit assessment
of the corporate; who in turn defines the limit on
The corporate bears the liability for the entire
outstanding amount on the cards.
Payment is made directly to the Bank once a
month instead of multiple payments to
Exposure risk of the Corporate is mitigated by
the fact that the card is a charge card wherein
the full payment.
Smart Credit Card
A smart card contains more information than a
magnetic stripe card and it can be programmed for
Smart cards can contain programming and data to
support multiple applications and some can be
updated to add new applications after they are
Smart cards can be designed to be inserted into a
slot and read by a special reader or to be read at a
distance, such as at a toll booth.
Cards can be disposable (as at a trade-show) or
reloadable (for most applications).
Virtual Credit Card
A virtual credit card, also known as a
throwaway or temporary credit card, is a
disposable payment card used for onetime purchases on the Internet.
It consists of a single-use credit card
number generated by the credit card
most cases, virtual credit card numbers
can only be used once, and will expire
after about a month if not used; this setup
helps protects the user from online credit
card fraud. Virtual credit cards can
usually be obtained from a consumer's
current credit card issuer.
E-wallet is an online prepaid account
where one can stock money, to be used
when required. As it is a pre-loaded
facility, consumers can buy a range of
products from airline tickets to grocery
without swiping a debit or credit card.
FORMS OF STOCK MARKET
1.SHARE APPLICATION FORM
4. SHARE TRANSFER FORM