instruments of payment

7/31/2019 Instruments of Payment

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Instruments of Payment

The instrument used to make payments will depend on the sum of money being paid and whetherthe transaction is a local or an external one.

Cheques

A cheque is an order to the bank to transfer payments from an individuals account (the

payers/drawers account) to credit another individuals account (the payees account) or to pay

the payee on presentation of that cheque.

Credit Transfer

A customer of a bank may use this system by instructing the bank to transfer money from hisaccount to an account at any other bank.

Standing Order/Bankers Order

This allows regular monthly payments to be made from a customers bank account to a namedpayee. The customer must complete and sign a standing order form instructing the bank to makepayments.
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Credit Cards/Debit Cards

This allows the card holder to make payments by simply presenting the card to the seller. Acredit card facility is actually a loan given to a customer and thus it is repaid at an interest. Adebit card is issued against a customers account balance and is therefore not a loan.

Postal Order

Postal orders are cheques issued in specific values by a post office. The value of each postal

order is printed on it and a price depending on its value is paid for each. The postal order will besent to the post office of the payee as designated by the payer.

Money Order

These can be purchased from a bank or a post office. They can be used to make payments locallyor overseas, as they are made out in the currency in which they are to be paid. The payee willcash the money order at his bank.

Telegraphic Money Order

The sender must first pay the sum to be sent over the counter of the post office. A telegram issent to the payee informing him to collect money at his local post office. He must present proofof his identity.

Bank Draft

This is a cheque that is used to make payments overseas. Bank drafts are obtained for a fee froma bank and are made out to a named payee in foreign currency.
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Bill of Exchange

This is used to pay for goods bought overseas on credit. It is an order in writing from an exporterto an importer requiring payments of a certain sum of money at a fixed future date. The timeperiod allowed is normally three months.

Letters of Credit/ Documentary Credit

This is a sent from an importers bank to an exporter guaranteeing payment to the exporter forgoods to be supplied. The exporter must present a clean bill of lading, certificate of origin and acertificate of insurance to the importers bank.

Irrevocable Letter of Credit

Once an exporter receives this letter of credit the importer cannot cancel payments for goods tobe supplied without the exporters permission.

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Home The Brazilian Payment System Payment instruments

Payment instruments

Payment instruments used by non-banks1

Cash payments

Cash payments are essentially used in small-value transactions relating to everyday purchases.They account for some 77% of payments carried out by individuals, according to a 2007 BancoCentral do Brazil survey. At the end of 2008, the total amount of currency in circulation wasabout R$ 115.6 billion, approximately R$112.7 billion in banknotes and R$ 2.9 billion in coins.Banknotes are issued in seven denominations (1; 2; 5; 10; 20; 50 and 100), and coins in sixdenominations (0.01; 0.05; 0.10; 0.25; 0,50 and 1.00). Both banknotes and coins are legal tenderin the Brazilian territory, but the acceptance of coins, as a payment instrument, is mandatory onlyup to 100 units of each denomination.

From 2004 to 2008, in average the currency held by the public stood for 39.5% of the monetaryaggregate M1, as shown below:

Chart: Share of currency held by the public in the monetary aggregate M1

Year Currency held by the public (chp) R$ million M1 R$ million chp / M1 %

2004 52,019 127,946 40.7
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Chart: Share of currency held by the public in the monetary aggregate M1

Year Currency held by the public (chp) R$ million M1 R$ million chp / M1 %

2005 58,272 144,778 40.4

2006 68,925 174,345 39,5

2007 82,251 231,431 35,5

2008 92,379 223,440 41.3Average 39.5

Source: Banco Central do Brasil1 At the end of the year.

Non-cash payments

Non-cash payments are mostly made by means of credit transfers, payment cards and checks.Payments are made in national currency only.The following graphs show the share of each payment instrument, in volume and value, in 2008:

Relative use of payment instruments - 2008 2


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1 - Credit transfers

In Brazil, interbank credit transfers ordered by non-banks include TED (Electronic FundsTransfer), DOC (Credit Transfer Document), TEC (Special Credit Transfer) and those related tobloquetos de cobrana

3 . In case of both TED and TEC, the related funds are made available atthe beneficiary's account on the same day (in case of TED, typically after few minutes from themoment the transfer is initiated by the payer). As to DOC, funds are made available at thebeneficiary's account, for withdrawal, on the following day (T+1)4, while in case of bloquetosde cobrana availability of funds at the beneficiary's account will depend on the agreement

between the beneficiary and its financial institution. Regarding intrabank credit transfers, whichare also important, typically the debit at the senders account and the credit at the receivers

account occur simultaneously at the moment the transfer is ordered.

Credit transfers can be initiated either by the payer himself, through an electronic access channel(ATM terminals, personal computers (internet banking) and mobile phones, for example), or by abank cashier on behalf of him. Even when initiated in paper by the customers, all credit transfersare electronically processed.


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In 2008, some 6.7 billion of credit transfers were made, which amounted to about R$ 18.1 trillion(average of R$ 2.7 thousand per transaction).

2Cheques

Check still represents an important payment instrument in Brazil, though there has been adecrease in its use in the last years due mainly to its substitution for electronic instruments.Having standardized format and basic features, checks have got what is known as 'Magnetic InkCharacter Recognition' (MICR), a device that allows its basic data to be read automatically.Sometimes, checks are written to be withdrawn in a future date (the so-called pre-datedchecks) and, in this case, they can be seen as credit instruments. In Brazil, sight deposit

accounts are the only ones in which check transactions can occur. Checks are still physicallypresented to the drawee bank, even though they can be truncated according to bilateralagreements.

Check interbank settlement occurs on T+1, observing different procedures according to is value5. In customers accounts, considering the date in which the document is collected as a reference

date, entries are normally made:

in the payer's account, as debit, at the night of T, in case of "above of the limit" checks6,or at the night of T+1, in case of below of the limit" checks; and

in the payee's account, as credit, at the night on T+1, in case of "above of the limit"checks, or at the night of T+2, in case of below of the limit" checks .In 2008, approximately 2 billion checks were written, amounting to some R$ 2.6 trillion (average

of R$ 1.3 thousand per check).

3 -Credit cards

Launched in Brazil in 1956, credit cards have achieved greater importance from the 1990s. Theeradication of some restrictions, such as the prohibition on buying fuel by credit cards and alsothe "private label" requirement, a market condition that existed until 1996 and that prohibited anissuer (bank) from operating more than one brand, contributed to their widespread use

7. In

Brazil', the credit card holder does not pay financial charges if the bill, related to the goods andservices that were bought, is totally paid on the next due date. The average time from the date ofshopping to the date of payment is 28 days, according to firms of the credit card sector.

The number of credit cards changed from 53.5 million in 2004 (average of 1 card per 3.4inhabitant) to 137.8 million in 2008 (average of 1 card per 1.4 inhabitant), corresponding to anincrement of 157.6% in the period (yearly average growth of 26.7%). In 2008, around 2.5 billioncredit card transactions were made, amounting to about R$ 217.9 billion (average value of R$ 86


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per transaction). From 2004 to 2008, credit card transactions increased about 101.2% in volume(19.1% yearly).

4 -Debit cards

Debit cards are typically issued as bank cards, many times having credit and cash withdrawalfunctions as well. As payment cards, they are used mainly in POS terminals located at thecommercial firms premises.The main brands are Visa Electron, Mastercard's Maestro, andTecBan's Electronic Check. As in the case of credit cards, debit cards with microchips have beengradually replacing the ones with magnetic band.

Payer account is usually debited at the moment of the purchase, while credit in the payee accountis made in a certain term, shorter or longer depending on the agreement between the commercialfirm and the respective acquirer.

In 2008, around 2.1 billion debit card payments were made, amounting to a total of about R$105.3 billion, with an average value of R$ 50 per transaction. From 2004 to 2008, the number ofdebit cards increased from 149.1 million (average of 0.8 card per inhabitant) to 207.9 million(average of 1.1 card per inhabitant), which is equivalent to a growth of about 39.4% (8.7%yearly). In the same period, debit cards payments increased around 129.9% in volume (yearlyaverage of 23.1%).

5 - Retailer cards

Retailer cards, which are mainly issued by major stores, can usually be used only at the shops ofthe same group, i.e., they are in-store cards. The use of this instrument implies paymentdeferment, since the cardholder can usually settle his total obligation between one and twomonths later, generally without charges, or pay it in installments. On the due date, having toreturn to the shop, the payer normally uses either cash, check or debit card to settle his obligation

Retailer cards units evolved from 86 million in 2004 to 173 million in 2008, which is equivalentto a 101.1% increase in the period (yearly average of 19.1%). In 2008, there were around 1,019million retailer card transactions, amounting to some R$ 53 billion (average value of some R$ 52per transaction).

6 - Charge cards

Charge cards are used for payment of specific services, mostly related to telephone and publicmeans of transport, or bulk value goods shopping. In the first case, which is the most common,public service companies issue their own cards, which can be acquired at some accredited shops.In this case, services are pre-paid and the card becomes disposable when its charge runs out. In


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the second case, the card is issued by a financial institution, which charges it up to a limit, for theuse of its customer at accredited shops. Such type of card, usually an embedded microprocessorcard, can be re-loaded many times. At each time, the charge limit determined by the issuer mustbe observed. In Brazil, though, charge cards are at a very early stage in its development, havingpioneer projects by Visa and Mastercard as good examples.

Financial institution-issued charge cards amount to some 472 thousand units, through whichsome 2.5 million transactions were carried out, in the value of about R$ 535 million (2008).

7 -Direct debits

Direct debit is normally used for recurrent payments, that is, those that are made on a periodic

basis, mostly related to utility services (water, electricity and telephone, for example). For suchpayments, the payer should preauthorise his bank to accept funds transfers initiated by the payee,which should previously send to the payer, for his control, the correspondent invoice. Theauthorization is usually for an indefinite time, therefore valid until not cancelled. On the day thatthe payment is due, there is an automatic and direct debit on the payer's account.

In 2008, around 871.3 million direct debit transactions were made, amounting to about R$ 217.9billion (average value of R$ 250 per transaction). From 2004 to 2008, direct debit transactionsincreased about 33.5% in volume (yearly average of 7.3%).

1All economic agents but sight deposit taking institutions.

2 Comprises credit, debit and retailer cards.3

Bar-coded standardized document that allows bills to be paid in any bank.4

Though interbank settlement takes place in the morning of T+1, some banks consider that fundshave been transferred at the night of the previous day (T), as it used to be before the existence ofTED.5

From 02.18.2005 on, checks which value are equal to or larger than a referential value (R$ 250thousand, presently) are settled bilaterally among banks, without netting, through STR. Checkswhich value is lower than this referential value are settled with multilateral netting in a specificclearing system (COMPE).6

"Above of the limit" checks are the ones which value is equal to or larger than a referentialvalue (R$ 299.99, presently).7 The main brands are Visa, Mastercard, American Express and Hipercard.Help| Privacy| Allrights reservedBanco Central do Brasil
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The financial market in Bangladesh is mainly of following types:

1. Money Market: The primary money market is comprised of banks, FIs and primarydealers as intermediaries and savings & lending instruments, treasury bills asinstruments. There are currently 15 primary dealers (12 banks and 3 FIs) inBangladesh. The only active secondary market is overnight call money market whichis participated by the scheduled banks and FIs. The money market in Bangladesh isregulated by Bangladesh Bank (BB), the Central Bank of Bangladesh.
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2. Capital market: The primary segment of capital market is operated through privateand public offering of equity and bond instruments. The secondary segment of capitalmarket is institutionalized by two (02) stock exchanges-Dhaka Stock Exchange andChittagong Stock Exchange. The instruments in these exchanges are equity securities(shares), debentures, corporate bonds and treasury bonds. The capital market in

Bangladesh is governed by Securities and Commission (SEC).

3. Foreign Exchange Market: Towards liberalization of foreign exchange transactions,a number of measures were adopted since 1990s. Bangladeshi currency, the taka, wasdeclared convertible on current account transactions (as on 24 March 1994), in termsof Article VIII of IMF Article of Agreement (1994). As Taka is not convertible incapital account, resident owned capital is not freely transferable abroad. Repatriationof profits or disinvestment proceeds on non-resident FDI and portfolio investmentinflows are permitted freely. Direct investments of non-residents in the industrialsector and portfolio investments of non-residents through stock exchanges arerepatriable abroad, as also are capital gains and profits/dividends thereon. Investment

abroad of resident-owned capital is subject to prior Bangladesh Bank approval, whichis allowed only sparingly. Bangladesh adopted Floating Exchange Rate regime since31 May 2003. Under the regime, BB does not interfere in the determination ofexchange rate, but operates the monetary policy prudently for minimizing extremeswings in exchange rate to avoid adverse repercussion on the domestic economy. Theexchange rate is being determined in the market on the basis of market demand andsupply forces of the respective currencies. In the forex market banks are free to buyand sale foreign currency in the spot and also in the forward markets. However, toavoid any unusual volatility in the exchange rate, Bangladesh Bank, the regulator offoreign exchange market remains vigilant over the developments in the foreignexchange market and intervenes by buying and selling foreign currencies whenever itdeems necessary to maintain stability in the foreign exchange market.


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Payment instruments and methods

To make doing business outside Canada easier.

We offer several ways to pay for your purchases outside the country and receive payments fromabroad while limiting the risks involved.

Receive fundstransfers

A fast, secure and cost-effective way to replace cheques.

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Make fundstransfers

Send funds quickly and securely throughout the world. Funds may also besent by direct deposit within Canada or to the U.S and several Europeancountries.

Find out more aboutmaking funds transfers
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Internationalletters ofguarantee

Confirm your crediworthiness to foreign suppliers or verify your partners'good credit standing.

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Export letter ofcredit

An agreement between financial institutions to pay the seller for goods and

services provided based on documents and not the merchandise or serviceinvolved. Guarantees that you, as the exporter, will receive payment fromyour clients.

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Import letter ofcredit

An agreement between financial institutions to pay the seller for goods andservices provided based on documents and not the merchandise or serviceinvolved. Ensures you, as the importer, that your contract will be honoured.

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Documentarycollections

Your Desjardins caisse acts on your behalf to collect payment of your

financial documents and negotiable instruments.

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Safer Online Money Transfer

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WorldRemit launches instant online money transfer to Bangladesh

Thursday, January 12, 201210:41 PM

London, UK: WorldRemit, the online money transfer system, has added Bangladesh to itsnetwork of 38 recipient countries as the country's dependence on migrant-senders increases.

The new WorldRemitonline money transferenables Bangladeshis to send money and airtimetop-up from the comfort of their own home using a variety of payment methods including debit
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cards, credit cards and online bank transfers. It is a convenient and low cost means of sendingmoney back home.

Bangladesh is the seventh largest recipient of global remittances in the world, receiving $11.10billion in 2010 according to the World Bank. Migrant workers' remittances also make the biggest

contribution to Bangladesh's foreign exports, making up 13% of GDP in 2010. This figure couldbe even greater, as estimates from the World Bank suggest high transfer costs by some servicesfor remittances relative to the value sent swallow up as much as $15 billion per year indeveloping countries.

The new service offers pay-out options including instant cash pickup, bank deposits to any bankand international airtime top-up. The instant cash pickup service is available at more than 3,000locations across the country.

WorldRemit uses a transparent system with clearly displayed and guaranteed exchange ratesgiving the sender the freedom to decide how much to send and the peace of mind that comes

from knowing exactly how much will be received.

About WorldRemit

WorldRemit, regulated by the Financial Services Authority (FSA) for the provision of paymentservices, is an innovative online money transfer business enabling customers to send money tofamily and friends back home using various payment options including debit cards, credit cardsand local payment methods.

WorldRemit has built a robust compliance system that eliminates common problems and risksassociated with money laundering and card fraud in international money services. WorldRemit

now offers online money transfer to over 38 countries.

Terms and conditions|Privacy Policy by TRUSTe|Cookies Policy|SitemapWorldRemit.com 2012 All Rights Reserved.

WORLDREMIT Ltd, Kensington Centre, 66 Hammersmith Road, London, W14 8UD, UnitedKingdom. Company registration number: 07110878WORLDREMIT Ltd is Authorised and Regulated by the Financial Services Authority (FSA)under the Payment Service Regulations 2009 for the provision of payment services. Registrationnumber:574642
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Payment card

From Wikipedia, the free encyclopediaJump to:navigation,search

Example of twocredit cards

An example of the front of a typicaldebit card:

1. Issuing bank logo2. EMV chip3. Hologram4. Card number5. Card brand logo6. Expiration date7. Cardholder's name

A payment card is a card that can be used by a cardholder and accepted by a merchant to make

apaymentfor a purchase or in payment of some other obligation.

There several types of payment cards in the marketplace which have several features in common.Payment cards are embossed plastic cards the size of which comply withISO/IEC 7810ID-1standard and have an embossedbank card numberconforming with theISO/IEC 7812numbering standard.
http://en.wikipedia.org/wiki/Payment_card#mw-headhttp://en.wikipedia.org/wiki/Payment_card#mw-headhttp://en.wikipedia.org/wiki/Payment_card#mw-headhttp://en.wikipedia.org/wiki/Payment_card#p-searchhttp://en.wikipedia.org/wiki/Payment_card#p-searchhttp://en.wikipedia.org/wiki/Payment_card#p-searchhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/EMVhttp://en.wikipedia.org/wiki/EMVhttp://en.wikipedia.org/wiki/Hologramhttp://en.wikipedia.org/wiki/Hologramhttp://en.wikipedia.org/wiki/Credit_card_numberhttp://en.wikipedia.org/wiki/Credit_card_numberhttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/ISO/IEC_7810http://en.wikipedia.org/wiki/ISO/IEC_7810http://en.wikipedia.org/wiki/ISO/IEC_7810http://en.wikipedia.org/wiki/Bank_card_numberhttp://en.wikipedia.org/wiki/Bank_card_numberhttp://en.wikipedia.org/wiki/Bank_card_numberhttp://en.wikipedia.org/wiki/ISO/IEC_7812http://en.wikipedia.org/wiki/ISO/IEC_7812http://en.wikipedia.org/wiki/ISO/IEC_7812http://en.wikipedia.org/wiki/File:CCardFront.svghttp://en.wikipedia.org/wiki/File:CCardFront.svghttp://en.wikipedia.org/wiki/File:Credit-cards.jpghttp://en.wikipedia.org/wiki/File:Credit-cards.jpghttp://en.wikipedia.org/wiki/File:CCardFront.svghttp://en.wikipedia.org/wiki/File:CCardFront.svghttp://en.wikipedia.org/wiki/File:Credit-cards.jpghttp://en.wikipedia.org/wiki/File:Credit-cards.jpghttp://en.wikipedia.org/wiki/File:CCardFront.svghttp://en.wikipedia.org/wiki/File:CCardFront.svghttp://en.wikipedia.org/wiki/File:Credit-cards.jpghttp://en.wikipedia.org/wiki/File:Credit-cards.jpghttp://en.wikipedia.org/wiki/File:CCardFront.svghttp://en.wikipedia.org/wiki/File:CCardFront.svghttp://en.wikipedia.org/wiki/File:Credit-cards.jpghttp://en.wikipedia.org/wiki/File:Credit-cards.jpghttp://en.wikipedia.org/wiki/ISO/IEC_7812http://en.wikipedia.org/wiki/Bank_card_numberhttp://en.wikipedia.org/wiki/ISO/IEC_7810http://en.wikipedia.org/wiki/Paymenthttp://en.wikipedia.org/wiki/Credit_card_numberhttp://en.wikipedia.org/wiki/Hologramhttp://en.wikipedia.org/wiki/EMVhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Payment_card#p-searchhttp://en.wikipedia.org/wiki/Payment_card#mw-head


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Contents

1 Typeso 1.1 Credit cardo 1.2 Debit cardo 1.3 Charge cardo 1.4 Stored-value cardo 1.5 Fleet cardo 1.6 Other

2 Technologieso 2.1 Magnetic stripe cardo 2.2 Smart cardo 2.3 Proximity cardo 2.4 Re-programmable magnetic stripe card

3 Securityo 3.1 Credit card fraudo 3.2 International credit card data theft

4 See also 5 References

Types

Typically, a payment card is electronically linked to an account or accounts belonging to thecardholder. These accounts may bedeposit accountsor loan or credit accounts. There are anumber of payment cards including:

Credit card

Main article:Credit card

A credit card is part of a system ofpaymentsnamed after the smallplasticcard issued to users ofthe system. It is a card entitling its holder to buy goods and services based on the holder'spromise to pay for these goods and services.[1]The issuer of the card grants aline of creditto theconsumer(or the user) from which the user can borrow money for payment to amerchantor as acash advanceto the user.

A credit card is different from acharge card, where a charge card requires the balance to be paidin full each month. In contrast, credit cards allow the consumers to 'revolve' their balance, at thecost of havinginterestcharged. Most credit cards are issued by localbanksorcredit unions, andare the shape and size specified by theISO/IEC 7810standard as ID-1. This is defined as 85.60 53.98 mm in size.

Debit card
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Main article:Debit card

Debit card

A debit card (also known as a bank cardor check card) is a plastic card that provides analternative payment method tocashwhen making purchases. Functionally, it can be called anelectronic cheque, as the funds are withdrawn directly from either thebank account, or from theremaining balance on the card. In some cases, the cards are designed exclusively for use on theInternet, and so there is no physical card.

[2][3]

The use of debit cards has become widespread in many countries and has overtaken the cheque,and in some instances cash transactions by volume. Likecredit cards, debit cards are used widelyfor telephone and Internet purchases, and unlike credit cards the funds are transferred from thebearer's bank account instead of having the bearer to pay back on a later date.

Debit cards can also allow for instant withdrawal of cash, acting as theATM card, and as acheque guarantee card. Merchants can also offer "cashback"/"cashout" facilities to customers,where a customer can withdraw cash along with their purchase.

Charge card

Main article:Charge card

A charge card is a means of obtaining a very short term (usually around 1 month) loan for apurchase. It is similar to acredit card, except that the contract with the card issuer requires thatthe cardholder must each month pay charges made to it in fullthere is no "minimum payment"other than the full balance. Since there is no loan, there is no official interest. A partial payment(or no payment) results in a severe late fee (as much as 5% of the balance) and the possiblerestriction of future transactions and risk of potential cancellation of the card.

Stored-value cardMain article:Stored-value card

A stored-value card refers to monetary value on a card not in an externally recorded account anddiffers from prepaid cards where money is on deposit with theissuersimilar to adebit card. Onemajor difference between stored value cards and prepaid debit cards is that prepaid debit cards
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are usually issued in the name of individual account holders, while stored value cards are usuallyanonymous.

The term stored-value cardmeans the funds and or data are physically stored on the card. Withprepaid cards the data is maintained on computers affiliated with the card issuer. The value

associated with the card can be accessed using amagneticstripe embedded in the card, on whichthe card number is encoded; using radio-frequency identification (RFID); or by entering a codenumber, printed on the card, into atelephoneor other numerickeypad.

Fleet card

Main article:Fleet card

A fleet card is used as a payment card most commonly for gasoline, diesel and other fuels at gasstations. Fleet cards can also be used to pay for vehicle maintenance and expenses at thediscretion of the fleet owner or manager. The use of a fleet card also eliminates the need for cash

carrying, thus increasing the level of security felt by fleet drivers. The elimination of cash alsomakes it easier to prevent fraudulent transactions from occurring at a fleet owner or managersexpense.

Fleet cards are unique due to the convenient and comprehensive reporting that accompanies theiruse. Fleet cards enable fleet owners/managers to receive real time reports and set purchasecontrols with their cards helping them to stay informed of all business related expenses.

Other

Other types of payment cards include:

Gift card Electronic purse

Technologies

Magnetic stripe card

Main article:Magnetic stripe card

An example of the reverse side of a typicaldebit card:
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1. Magnetic stripe2. Signaturestrip3. Card Security Code

A magnetic stripe card is a type of card capable of storingdataby modifying themagnetismof

tiny iron-based magnetic particles on a band of magnetic material on the card. The magneticstripe, sometimes called a magstripe, is read by physical contact and swiping past a reading head.Magnetic stripe cards are commonly used incredit cards,identity cards, and transportationtickets. They may also contain anRFID tag, atransponder deviceand/or amicrochipmostlyused for business premisesaccess controlor electronic payment.

A number ofInternational Organization for Standardizationstandards,ISO/IEC 7810,ISO/IEC7811,ISO/IEC 7812,ISO/IEC 7813,ISO 8583, andISO/IEC 4909, define the physicalproperties of the card, including size, flexibility, location of the magstripe, magneticcharacteristics, and data formats. They also provide the standards for financial cards, includingthe allocation of card number ranges to different card issuing institutions.

Smart card

Main article:Smart card

Smart card used for health insurance in France

A smart card, chip card, orintegrated circuitcard (ICC), is any pocket-sized card with embeddedintegrated circuits which can process data. This implies that it can receive input which isprocessedby way of the ICC applicationsand delivered as an output. There are two broadcategories of ICCs.Memory cardscontain only non-volatile memory storage components, andperhaps some specific security logic.Microprocessor cardscontain volatile memory andmicroprocessor components. The card is made of plastic, generallyPVC, but sometimesABS.The card may embed ahologramto avoidcounterfeiting. Using smart cards is also a form ofstrong security authentication forsingle sign-onwithin large companies and organizations.

EMVis the standard adopted by all major issuers of smart payment cards.[citation needed]

Proximity card

Main article:Proximity card
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A proximity card

Proximity card (or prox card) is a generic name for contactless integrated circuit devices used forsecurity accessor payment systems. It can refer to the older 125 kHz devices or the newer13.56 MHz contactlessRFIDcards, most commonly known ascontactless smartcards.

Modern proximity cards are covered by theISO/IEC 14443(proximity card) standard. There isalso a relatedISO/IEC 15693(vicinity card) standard. Proximity cards are powered byresonantenergy transferand have a range of 0-3 inches in most instances. The user will usually be able toleave the card inside a wallet or purse. The price of the cards is also low, usually US$2$5,allowing them to be used in applications such as identification cards,keycards, payment cardsandpublic transitfare cards.

Re-programmable magnetic stripe card

Re-programmable/dynamic magnetic stripe cards are standard sized transaction cards thatinclude a battery, a processor, and a means (inductive coupling or otherwise)of sending a

variable signal to a magnetic stripe reader. Re-programmable stripe cards are often more securethan standard magnetic stripe cards and can transmit information for multiple cardholderaccounts.[citation needed]

Security

Credit card fraud

Main article:Credit card fraud

Credit card fraud is a wide-r

instruments of payment

Documents