Credit Card. How Stuff Works



The Credit Card and ATM card is a kind of payment card issued by the Bank to the customers as a system of payment. The card allows the card holder to pay for the goods purchased as well as to withdraw money from ATM (Automated Teller Machine) counters. The Credit card is popularly called as Plastic money and is different from a Charge card. The Charge card requires the balance to be paid in full each month while the Credit cards allow the users a continuing balance of debt subject to the interest being charged. ATM card on the other hand is issued by the bank for the account holders to withdraw money from ATM counters without going to the bank. Unlike Debit and Credit cards, the ATM card requires authentication through a Personal Identification Number or PIN. Some banks provide a combined ATM and Debit card called Bank card for easy use in ATM counter as well in Point Of  Sale (POS) transactions.

The Credit and ATM card has a standard size of 85.60 x 53.93 mm and rounded corners with a radius of 2.88-3.48 mm. It has a Magnetic strip attached which contains the information related to the account holder. The Electronic verification system allows the merchants about the validity of the card at the time of the purchase. This verification is done using a Credit card payment terminal or Point of Sale or POS. Data from the card is obtained from the Magnetic strip on the card or a Chip in the card. In Visa verified cards, the last 3 letters are used as CVV (Card Verification Value)  number. CVV is not the PIN but it gives the confirmation about the physical card during online transactions. The 3 digit CVV number is printed on the signature panel on the back of the card immediately after the card number.

The numbering system varies depending on the type of card. For example in Visa card, digits 2 through 6 indicate bank number, digits 7 though 12 or 15 indicates the account number and the digit 13 or 16 indicates the check digit. In Master card, digits 2 and 3, two through 4,2 through 5 or 2 through 6 are the bank number. The digits after the bank number up through digit 15 are the account number, and digit 16 is the check digit.

ATM card is a valuable item and it should be kept in safe custody. Malpractices can occur if it is stolen. After the transaction, immediately keep it in a safe place. During use, sometimes the Card will stuck in the ATM. If it happens, first press the Cancel button few times to see if the ATM card comes out. If it is not coming out, inform the customer care to block the activities of the ATM card. Usually the card will be stored inside the ATM machine in a vault so that the bank officials can take the card out easily.

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