ATM Cards

An ATM card (also known as a bank card, client card, key card or cash card) is a card
issued by a bank, credit union or building society that can be used at an ATM for
deposits, withdrawals, account information, and other types of transactions, often
through interbank networks.

It Can be classified into

1.Debit Card
2.Credit card

Debit card:

Debit card (also known as a bank card or check card) is a plastic card that provides an
alternative payment method to cash when making purchases. Functionally, it can be
called an electronic check or giro, as the funds are withdrawn directly from either the
bank account, 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

Advantages of debit cards

 A consumer who is not credit worthy and may find it difficult or impossible to
obtain a credit card can more easily obtain a debit card, allowing him/her to
make plastic transactions. For example, legislation often prevents minors from
taking out debt, which includes the use of a credit card, but not online debit card
transactions.

 For most transactions, a check card can be used to avoid check writing
altogether. Check cards debit funds from the user's account on the spot, thereby
finalizing the transaction at the time of purchase, and bypassing the requirement
to pay a credit card bill at a later date, or to write an insecure check containing
the account holder's personal information.
 Like credit cards, debit cards are accepted by merchants with less identification
and scrutiny than personal checks, thereby making transactions quicker and less
intrusive. Unlike personal checks, merchants generally do not believe that a
payment via a debit card may be later dishonored.
 Unlike a credit card, which charges higher fees and interest rates when a cash
advance is obtained, a debit card may be used to obtain cash from an ATM or a
PIN-based transaction at no extra charge, other than a foreign ATM fee.

Disadvantages of debit cards

 Use of a debit card is not usually limited to the existing funds in the account to
which it is linked, most banks allow a certain threshold over the available bank
balance which can cause overdraft fees if the users transaction does not reflect
available balance.
  Many banks are now charging over-limit fees or non-sufficient funds fees based
upon pre-authorizations, and even attempted but refused transactions by the
merchant (some of which may be unknown until later discovery by account
holder).
 Many merchants mistakenly believe that amounts owed can be "taken" from a
customer's account after a debit card (or number) has been presented, without
agreement as to date, payee name, amount and currency, thus causing penalty
fees for overdrafts, over-the-limit, amounts not available causing further
rejections or overdrafts, and rejected transactions by some banks.
 In some countries debit cards offer lower levels of security protection than credit
cards Theft of the users PIN using skimming devices can be accomplished much
easier with a PIN input than with a signature-based credit transaction. However,
theft of users' PIN codes using skimming devices can be equally easily
accomplished with a debit transaction PIN input, as with a credit transaction PIN
input, and theft using a signature-based credit transaction is equally easy as theft
using a signature-based debit transaction.
 In many places, laws protect the consumer from fraud much less than with a
credit card. While the holder of a credit card is legally responsible for only a
minimal amount of a fraudulent transaction made with a credit card, which is
often waived by the bank, the consumer may be held liable for hundreds of
dollars, or even the entire value of fraudulent debit transactions. The consumer
also has a shorter time (usually just two days) to report such fraud to the bank in
order to be eligible for such a waiver with a debit card, whereas with a credit
card, this time may be up to 60 days. A thief who obtains or clones a debit card
along with its PIN may be able to clean out the consumer's bank account, and the
consumer will have no recourse.

Credit Card

A credit card is a small plastic card issued to users as a system of payment. It allows its
holder to buy goods and services based on the holder's promise to pay for these goods
and services.[1] The issuer of the card creates a revolving account and grants a line of
credit to the consumer (or the user) from which the user can borrow money for payment
to a merchant or as a cash advance to the user.

Benefits to customers

The main benefit to each customer is convenience. Compared to debit cards and cheques,
a credit card allows small short-term loans to be quickly made to a customer who need
not calculate a balance remaining before every transaction, provided the total charges
do not exceed the maximum credit line for the card. Credit cards also provide more fraud
protection than debit cards. In the UK for example, the bank is jointly liable with the
merchant for purchases of defective products over £100. Many credit cards offer rewards
and benefits packages, such as offering enhanced product warranties at no cost, free
loss/damage coverage on new purchases, and points which may be redeemed for cash,
products, or airline tickets. Additionally, carrying a credit card may be a convenience to
some customers as it eliminates the need to carry any cash for most purposes

Smart Card

A smart card, chip card, or integrated circuit card (ICC), is any pocket-sized card with
embedded integrated circuits. There are two broad categories of ICCs. Memory cards
contain only non-volatile memory storage components, and perhaps dedicated security
logic. Microprocessor cards contain volatile memory and microprocessor components.
The card is made of plastic, generally polyvinyl chloride, but sometimes acrylonitrile

SMS Banking

SMS banking is a technology-enabled service offering from banks to its customers,

permitting them to operate selected banking services over their mobile phones using SMS
messaging.

Mobile banking

Mobile banking (also known as M-Banking, mbanking, SMS Banking) is a term used for
performing balance checks, account transactions, payments, credit applications and
other banking transactions through a mobile device such as a mobile phone or Personal
Digital Assistant (PDA). The earliest mobile banking services were offered over SMS.
With the introduction of the first primitive smart phones with WAP support enabling the
use of the mobile web in 1999, the first European banks started to offer mobile banking
on this platform to their customers

Mobile banking can offer services such as the following:

Account Information

1. Mini-statements and checking of account history

2. Alerts on account activity or passing of set thresholds
3. Monitoring of term deposits
4. Access to loan statements
5. Access to card statements
6. Mutual funds / equity statements
7. Insurance policy management
8. Pension plan management
 9. Status on cheque, stop payment on cheque
10. Ordering cheque books
11. Balance checking in the account
12. Recent transactions
13. Due date of payment (functionality for stop, change and deleting of payments)
14. PIN provision, Change of PIN and reminder over the Internet
15. Blocking of (lost, stolen) cards

Payments, Deposits, Withdrawals, and Transfers

1. Domestic and international fund transfers

2. Micro-payment handling
3. Mobile recharging
4. Commercial payment processing
5. Bill payment processing
6. Peer to Peer payments
7. Withdrawal at banking agent
8. Deposit at banking agent

A specific sequence of SMS messages will enable the system to verify if the client has
sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at
the agent. When depositing money, the merchant receives cash and the system credits the
client's bank account or mobile wallet. In the same way the client can also withdraw
money at the merchant: through exchanging sms to provide authorization, the merchant
hands the client cash and debits the merchant's account.

Investments

1. Portfolio management services

2. Real-time stock quotes
3. Personalized alerts and notifications on security prices
4. mobile banking

Support

1. Status of requests for credit, including mortgage approval, and insurance

coverage
2. Check (cheque) book and card requests
3. Exchange of data messages and email, including complaint submission and
tracking
4. ATM Location

Content Services

1. General information such as weather updates, news

2. Loyalty-related offers
 3. Location-based services

Telephone banking is a service provided by a financial institution, which allows its

customers to perform transactions over the telephone.

Most telephone banking services use an automated phone answering system with phone
keypad response or voice recognition capability. To guarantee security, the customer
must first authenticate through a numeric or verbal password or through security
questions asked by a live representative (see below). With the obvious exception of cash
withdrawals and deposits, it offers virtually all the features of an automated teller
machine: account balance information and list of latest transactions, electronic bill
payments, funds transfers between a customer's accounts, etc.

Online banking

Online banking solutions have many features and capabilities in common, but
traditionally also have some that are application specific.

The common features fall broadly into several categories

 Transactional (e.g., performing a financial transaction such as an account to

account transfer, paying a bill, wire transfer, apply for a loan, new account, etc.)
o Payments to third parties, including bill payments and telegraphic/wire
transfers
o Funds transfers between a customer's own transactional account and
savings accounts
o Investment purchase or sale
o Loan applications and transactions, such as repayments of enrollments

 Non-transactional (e.g., online statements, cheque links, cobrowsing, chat)

o Viewing recent transactions
o Downloading bank statements, for example in PDF format
o Viewing images of paid cheques
 Financial Institution Administration
 Management of multiple users having varying levels of authority
 Transaction approval process

Features commonly unique to Internet banking include

 Personal financial management support, such as importing data into personal

accounting software. Some online banking platforms support account
aggregation to allow the customers to monitor all of their accounts in one place
whether they are with their main bank or with other institutions.
Electronic funds transfer or EFT is the electronic exchange or transfer of money from
one account to another, either within a single financial institution or across multiple
institutions, through computer-based systems.

The term is used for a number of different concepts:

 Cardholder-initiated transactions, where a cardholder makes use of a payment

card
 Direct deposit payroll payments for a business to its employees, possibly via a
payroll service bureau
 Direct debit payments, sometimes called electronic checks, for which a business
debits the consumer's bank accounts for payment for goods or services
 Electronic bill payment in online banking, which may be delivered by EFT or
paper check
 Transactions involving stored value of electronic money, possibly in a private
currency
 Wire transfer via an international banking network (carries a higher fee in North
America)
 Electronic Benefit Transfer

Account Information

 Mini-statements and checking of account history

 Alerts on account activity or passing of set thresholds
 Monitoring of term deposits
 Access to loan statements
 Access to card statements
 Mutual funds / equity statements
 Insurance policy management
 Pension plan management
 Status on cheque, stop payment on cheque
 Ordering cheque books
 Balance checking in the account
 Recent transactions
 Due date of payment (functionality for stop, change and deleting of payments)
 PIN provision, Change of PIN and reminder over the Internet
 Blocking of (lost, stolen) cards

Payments, Deposits, Withdrawals, and Transfers

  Domestic and international fund transfers
 Micro-payment handling
 Mobile recharging
 Commercial payment processing
 Bill payment processing
 Peer to Peer payments
 Withdrawal at banking agent
 Deposit at banking agent

A specific sequence of SMS messages will enable the system to verify if the client has
sufficient funds in his or her wallet and authorize a deposit or withdrawal transaction at
the agent. When depositing money, the merchant receives cash and the system credits the
client's bank account or mobile wallet. In the same way the client can also withdraw
money at the merchant: through exchanging sms to provide authorization, the merchant
hands the client cash and debits the merchant's account.

Investments

 Portfolio management services

 Real-time stock quotes
 Personalized alerts and notifications on security prices

Support

 Status of requests for credit, including mortgage approval, and insurance

coverage
 Check (cheque) book and card requests
 Exchange of data messages and email, including complaint submission and
tracking
 ATM Location

Conclusion