Generally, bank cards can be divided to debit and credit cards. Debit cards serve the bank accounts of the bank’s current customers and credit cards are essentially the type of consumer credit. What is common between the two categories of cards is that they both are issued to physical and legal persons, while the bank can set limits to business cards and thus track company payments.
1. The essence of credit cards
Credit cards issued by the issuer, are intended for use in the home country and abroad, and with them can be made non-cash payments for goods and services to retailers using POS terminal (or imprinter), withdrawing cash from ATMs (ATMs), marked with the brand, getting cash into financial institutions through a POS terminal or imprinter and other non-payment and reference operations.
A credit card can be issued to an individual cardholder as a physical person as described below:
- Main – issued to the cardholder;
- Family / Additional – through the lot of the holder, issued to third parties by order of the holder.
- A credit card can be issued to the card holder as a legal entity as described below:
- A primary card is issued to the name of legal entity;
- Additional cards are issued to individual employees.
The credit card is authorized on the basis of a credit limit. The issuer accepts to make payments by order of any cardholder at the maximum allowed amount of the debit balance on it.
Each card can be issued with a unique personal identification number (PIN). The PIN-number is a combination of four digits generated by the issuer and may not be changed by the cardholder. If a cardholder forgets his/her PIN or blocks it by three incorrect entries, the issuer, at the request of the cardholder, provides him/her with a new PIN-number.
All cards issued by the issuer are his exclusive property. The cardholder is obliged to store the card and the PIN-number responsibly and keep them in different places at any time. The cardholder is obliged to protect the card from bending, breaking, demagnetizing and other mechanical damages. Upon expiry of the validity of the card the cardholder must immediately return it to the publisher.
The card cannot be held by, transferred or made available to third parties in any other way. The card number must not be communicated to third parties except when making reservations and/or ordered payments or when required by a bank officer of the issuer’s bank.
When using the card for payment of goods and services the cardholder is required to verify the proof of payment, which is presented by the dealer (or printed electronically) and to sign it. The signature on the document must match the signature affixed to the back of the card. By signing the proof of payment the cardholder certifies the amount of payment and instructs the issuer to record the payment amount in the account of the cardholder and to transfer the amount to the trader who accepts cards. The Vendor has the right to ask the cardholder to verify his/her identity.