Business Administration term project 2 (25%) financial Management Systems Debit card and credit card payments By Ashleigh Gray

What is an EFTPOS credit card  EFTOPS stands for Electronic Funds Transfer at Point of Sale. This refers to the technology that allows a retailer to directly debit a customer's bank account by using a EFTPOS card. The debit card, generally the same as an ATM card, is swiped through a reading device just like a credit card. The customer must enter his or her PIN number, generally requested once the amount of the sale has been entered into the EFTPOS device.

THE DIFFERENCE BETWEEN A DEBIT CARD & A CREDIT CARD THE DIFFERENCE BETWEEN A DEBIT CARD & A CREDIT CARD  The main difference between debit and credit is in the way that the transactions are processed. When you run your bank card as a debit card, you will be asked to enter a personal identity number (PIN), and the funds are removed from your account instantly. When you select a credit option, the transaction will then be verified with your signature, and the funds may not be removed from your account right away, depending on how the store processes its credit card transactions.

BENEFITS OF A CREDIT CARD  Its also quick and easy  Having a credit card available in case of an emergency situation Federal law states that you are only responsible for the first $50 of unauthorized charges on your credit card  Insurances that cover purchases made by a credit card

BENEFITS OF A DEBIT CARD  Debit cards are an alternative to prepaid credit cards this is to help limit and control your spending.  You are provided with a monthly statement and therefore get a good summary of purchases, and in most cases a better budgeting and credit management tool to a prepaid credit card.

HOW TO USE A CREDIT CARD.  Today when using your credit card you have two options.  1) Swiping you card and verify that it is you with your signature. Your signature is then double checked and the transaction is processed.  2) You swipe your card and then enter you personal identification number and ok.

HOW TO USE A DEBIT CARD  Debit card is different to a credit card as you have no choice of signing you must enter your personal identification number that your bank has provided you with. This can be declined if you do not have the funds in your bank to support your purchase.

CREDIT CARD FRAUD  Credit card fraud has increased by 10% each year in the UK. When a card is stolen most card issuers will refund some or all of the charges that the customer has received for things they did not buy. These refunds will, in some cases, be at the expense of the merchant. In few countries, merchants will lose the money if no ID card was asked for, therefore merchants usually require ID card in these countries. Credit card companies generally guarantee the merchant will be paid on legitimate transactions regardless of whether the consumer pays their credit card bill.

Credit cards in ATMs  Many credit cards can also be used in an ATM to withdraw money against the credit limit extended to the card, but many card issuers charge interest on cash advances before they do so on purchases. The interest on cash advances is commonly charged from the date the withdrawal is made, rather than the monthly billing date. Many card issuers levy a commission for cash withdrawals.

Summery  The use of debit cards has become widespread in many countries and has overtaken the cheque, and in some instances cash transactions by volume. Like credit cards, debit cards are used widely for telephone and Internet purchases.  Debit cards can also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a cheque guarantee card. Merchants can also offer "cash back“ / "cash out" facilities to customers, where a customer can withdraw cash along with their purchase