ELECTRONIC PAYMENT SYSTEM

DEBIT CARD Also known as bank card or check card. It is a plastic card that provides the card holder electronic access to his or her bank account at a financial institution. It also acts as ATM card. Immediate transfer happens.

Advantages of using Debit cards Convenience It takes less time to complete a purchase It keeps you within budget They are easier to get than a credit card You can easily get cash

Disadvantages of using Debit card Disputed charges can be more difficult to resolve. Some banks may charge you extra fees. You don’t improve your credit score. You cant take advantage of reward points. It gives you lower levels of fraud protection. Potential liability for misuse is unlimited.

CREDIT CARDS A plastic card that allows its holder to buy goods and services on credit and pay at fixed intervals through the card issuing agency. A person whose income is 60000 per annum is eligible for card. Annual charge is charged to the card holder.

Benefits of credit cards to the Bank Attracts potential customers Enhances customer satisfaction Increases turnover Enhances bank image Increases customer base Reduces expenses of cash handling Identification of high net worth customers Increases deposit base of the bank Helps in maintaining good relation with customers

Benefits of credit cards to the Cardholders Cashless transaction Reduce bank handling charges Free credit for customers between 30 to 50 days of purchase Availed with minimum formality Option to extend credit limit Exposure to banking operations Convenience of making single payment Additional facilities like free insurance, discounts on purchase, free travel booking etc Considered as a status symbol

Benefits of credit cards to the Merchant Establishments Increase in sales Ensures timely and certainty of payments No need to send reminders of outstanding debts Systematic accounting system Development of prestigious clientele base Avoids cash handling problem Additional liquidity is achieved Reduced customer problems

Disadvantages of using Credit cards Outlets accepting credit cards Takes longer time than cash transactions Customer tends to overspend Loss of card Frauds Denied cash discount Increase spending habits and end up in big debt.

AUTHORIZATION It is the practice within banking industry of authorizing electronic transactions done with a debit card or a credit card and holding this balance as unavailable till the merchant clears the transaction or the hold fall offs. In debit card the fall off may be between 1-5 days depending on banks policy In credit card the fall off may as long as 30 days depending on issuing bank

Key players in Authorization Cardholder Merchant Acquiring Bank(Merchant bank) Issuing Bank( Cardholder Bank) Card associations(Visa and master card)

Credit card authorization process Purchase from a store The payment gateway encrypts data and securely sends it through the payment processing network The transaction is reviewed for authorization of decline, and the results are sent back through the pay flow payment gateway. Customer receives a confirmation receipt and the order is fulfilled Once the transaction is processes, funds are transferred from the customers bank account to your merchant bank account.

E-BANKING Online banking/ Internet banking Allows customers of a financial institution to conduct financial transaction on a secure website operated by the institution. Customer need to have internet access and have to register with the financial institution for service and set up password

Advantages of Internet Banking Very convenient Unlimited service day and night No time constraint Easy to access via PC or Cell phone Easy way of payment Smart Easy transaction Efficient and effective way of banking

Disadvantages of Internet Baking Resistance from customers to share personal information. Security concern No face to face interaction Website issues Difficulty in remembering passwords

MOBILE BANKING Refers to provision and availment of banking and financial services with the help of mobile communication devices. Account information Mini statements Alerts on account activity Access to loan statements Access to card statements Insurance policy management Mutual Funds / Equity statement

ONLINE-ONLY BANK It gives to the ability to manage your finances using your computer or phone which makes it easy for you to check your balance, review your transactions, pay bills and transfer money between accounts. Credit and interest rates

Few things to look for Checking accounts Savings accounts Money market accounts Certificates of deposits