Podcast
Questions and Answers
Debit cards are linked to a pay as you go account and take instructions from transactional accounts.
Debit cards are linked to a pay as you go account and take instructions from transactional accounts.
True
Credit cards provide you with a life of credits to spend, essentially functioning like a loan card.
Credit cards provide you with a life of credits to spend, essentially functioning like a loan card.
True
Prepaid cards require you to prefund them before spending money and utilize the funds available on the card.
Prepaid cards require you to prefund them before spending money and utilize the funds available on the card.
True
An Issuing Bank (Issuer) offers card association branded payment directly to consumers.
An Issuing Bank (Issuer) offers card association branded payment directly to consumers.
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A cardholder is a user who has been issued a credit card as a payment instrument, allowing them to pay based on a promise to pay later.
A cardholder is a user who has been issued a credit card as a payment instrument, allowing them to pay based on a promise to pay later.
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Clearing involves exchanging clearing data and sending transactions from the issuer to the acquirer for posting to the cardholder.
Clearing involves exchanging clearing data and sending transactions from the issuer to the acquirer for posting to the cardholder.
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Settlement is the process where funds are exchanged, representing the net value of monetary transactions from clearing processing.
Settlement is the process where funds are exchanged, representing the net value of monetary transactions from clearing processing.
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BIN stands for Business Identity Number.
BIN stands for Business Identity Number.
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Study Notes
Types of Cards
- A debit card is linked to a transactional account, such as a current account, and takes instructions from the transactional account.
- A credit card is a type of loan card that provides a line of credit for the cardholder to spend.
- A prepaid card requires prefunding before use and can only be spent up to the amount funded on the account.
Card Issuance
- An Issuing Bank (Issuer) is a bank that offers card association branded payment directly to consumers.
- The Issuing Bank issues payment to the acquiring bank on behalf of its customers.
Cardholder and Payment
- A cardholder is a user issued with a credit card as a payment instrument.
- The cardholder can pay for goods and services based on their promise to pay for them.
Payment Processing
- Clearing is the process of exchanging clearing data, including sending transactions from the issuer to the acquirer for posting to the cardholder.
- Settlement is the process of exchanging funds, representing the net equivalent of monetary value from clearing processing, between customers.
- BIN stands for Bank Identification Number (not Business Identity Number).
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Description
Test your knowledge on different types of payment cards such as debit cards, credit cards, and prepaid cards with this quiz. Learn about their features, usage, and differences.
