The document discusses different types of bank cards including their origins, definitions, functions and key features. It describes credit cards as plastic cards that allow cardholders to make purchases with a line of credit from the issuing bank. ATM cards are discussed as allowing cardholders to withdraw cash from ATMs 24/7. Debit cards are defined as payment cards where the transaction amount is deducted directly from the cardholder's bank account upon authorization, without any grace period. Advantages and disadvantages are provided for each type of card from the perspective of cardholders and businesses.

1. Operations

2. There is no unanimous opinion about the origin of the term
‘bank’. According to the opinions of some experts, the origin
of bank’ is traced to a latin word bancus’ which means a
bench’.
According to the opinions expressed by other experts, the
word ‘bank’ was originally derived from the German word
bankon’. Bankon’ refers to ‘joint stock fund’. This word
Italianized into ‘banco’ by the German and was again changed
into bank ‘by the French. Later on the British people
converted this word into bank.

3. Meaning And Definition of
the word‘Bank’
 A bank is a financial institution that accepts deposits from
the public and those deposits through loans and advances
or invests on securities through financial market.
Section5(a)of the banking Regulation Act ,1949, ‘a
banking company as a company which transacts the
business of banking’.
According to Herbert L Hart, “The banker is a person or
company carrying on the business receiving money and
collection draft for customers subject to the obligation of
honouring the cheques drawn upon him from time to time
by customers upto the amount available on theircurrent
accounts”.

4. Functions Of Banks
Primary
Secondary
 Borrowing Lending
Current Loans
Fixed Overdraft
Savings Cash Credit
Recurring Buying &
discounting
bills of exchange
Agency Services General Utility
Services
Collection& payment
behalf of customers Mail transfer
Money transfer Safe deposit locker
Buying & selling securities Safety of valuables
Service-As trustees Latter of credit
Executor& legal advisor Travelers cheques
Collection of statistics
Merchant bankingservice
Lease finance
Teller system
Underwriting

5. Credit Cards
“Credit Card’’.
A credit card is the plastic card usually 3-1/8inches by 2-1/8inches is size.It
is made of plastic, therefore it is popularity called plastic money.
Bank Credit Cards
A bank credit cards are issued by banking
companies. These cards enable the card
holders to buy goods and services with a
credit line given by the banker and can
withdraw a specified sum from correspondent
banks/branches.

6. Particulars on the Credit Card
*Full name of a customer
*16 digit number
*card validity date
*VISA hollogram
*card issuing bank name
*Card holder’s signature
*black magnetic strip
Advantages of bank credit cards
(a) To card holders:
1) Relieves from the burden of carrying cash
2)Easy payment mode-payment by cash is riskier to all
3)Customer can get overdraft facility for 45 days without undue dealy by
correspondent banks
4)Helpline facilities 24*7 to card holders for emergency services
5)Card can be used for identity purpose also.

7. Disadvantages to Card
Holders
(1)Cards induces the holders to purchase beyond their present
income.
(2)Interest rates on cash withdrawals is more when compared with
other consumer loans.
Advantages to Business Enterprises
*Credit cards guarantees payment.Chances of bad debts are very
rare.Lots of risk is involved in credit card busniess
*Credit cards promote sales.They increase the purchasing power of
card holders.
*Business houses become popular,many times card issuing
branches introduce or advertise traders to customers.
Disadvantage to Business Enterprises
*Credit cards are not suitable to petty traders

8. ATM Cards
The full form of ATM is “Automated Teller Machine’’.Banks and
financial institution have popularised ATM card services. The
revolution in information and telecommunication technology
has extended the scope of ATM business.ATM was introduced in
the year 1956 and Barclays Bank of London was popularised ATM
service.
Advantages of ATM
*24/7 service.
*Save time & efforts.
*ATM can be operated easily by every one.
*Card holder’s business secrets can be easily maintained.
*Card holders can get mini account statement to verify their
transactions.
*Withdrawls from other bank’s ATM centers are also permitted.

9. Parts Of ATM
1) Card reader :
The card reader captures the account information stored on the
magnetic stripe on the back of an ATM card.
2) Keypad:
It let card holder to inform the bank what type of transaction is
required .
Example: (cash withdraw, deposit balance) etc..
3) Speaker:
It provides the card holder with auditory or listening feedback
when a key is pressed .
4) Display screen:
It display each step the card holder has to perform and the result
of each transaction instantly .
5) Receipt printer:
It provides a printed receipt to the card holder.

10. Debit Cards
A debit card is a payment card where the transaction amount
is deducted directly from the card holders bank account
upon authorisation .
Advantages of Debit Cards
* It easy to obtain debit cards . An account holder ( savings or
current) is issued a debit card on request.
*It relieves the card holders from the risk of carrying cash
during travel.
*Card holders can purchase goods and services without pre
payment.
*Card increase the purchasing capacity of card holders.
*Debit card are useful to travelers, tourists and general
public.

11. Disadvantages of
debit card
*Debit card do not allow grace period on purchase of
goods and services.
*Debit cards induces to purchase more.
*Debit card holders charged with annual /services
charges by banks .
*Debit card service depends on the availability of
electronic network service.