Types of Cards:
Types of cards in banking are available here. Types of Cards and ATMs were given here which were important Banking Awareness Materials for IBPS, RBI, SBI, and other exams. Here we have explained to you about the types of cards and ATMs. We have already provided more study materials on Banking Awareness and Banking Awareness Quiz, for the aspirants.
In the bank exams, you can expect questions from the types of cards and ATMs topic. In day-to-day life, we use many cards in banking and ATM services. So, it is very essential for the aspirants to know complete details on it. If you are thorough with the types of cards in banking topic & types of ATMs, then you can expect 2 or 3 questions. In competitive exams, it is very important to hunt each and every question. So, prepare these topics without fail.
Here we list out the different types of cards in banking.
- Credit card
- Debit Card
- ATM card
- Charge card
- Prepaid card
- Fleet card
- FOREX card
Types of Cards – Credit Card:
- Any bank / Institution approved by the RBI provides the credit card.
- The credit card makes a facility for the cardholder to spend money beyond the account balance. The Credit card limit will vary from one to one.
- Credit card is an unsecured loan. The withdrawn money should be paid within a certain time limit along with the prescribed interest rate.
- It is useful for purchasing goods and materials through online shopping, point of sale service, etc.
- Using credit cards you can withdraw cash amounts from ATM. Also, you can transfer funds to the bank accounts.
Types of Cards – Debit Cards:
- The debit cards are used to withdraw the cash amount from the cardholder’s bank account. You can withdraw cash only up to the available balance.
- This can be issued by Banks and other financial institutes approved by RBI.
- Debit cards are used for instant withdrawal of cash, fund transfer for other bank accounts, payment of cash through POS, online payment, etc.
Types of Cards – ATM Card:
- The ATM cards are useful for fund transactions such as deposits, withdrawals, transfers, and obtaining account details.
- Most Debit and Credit cards are used as ATM cards.
- The use of a credit card to withdraw cash at an ATM attracts interest charges from the date of the fund withdrawal.
- The use of a debit card usually does not attract interest. Third-party ATM owners may charge a fee for the use of the ATM.
Types of Cards – Charge Card:
- By these charge cards, the cardholder can pay the balance amount shown in the statement, usually which is reported monthly with the due date.
- It is an other form of short-term loan to cover the cardholder’s purchases, from the date of the purchase and the payment due date, which may typically be up to 55 days.
- No interest will be applicable on these cards.
- There is no upper limit on the total amount that may be charged.
Types of Cards – Prepaid Card:
- These cards are issued by banks or other institutions on paying cash in advance. It is used to withdraw cash, purchase goods and services, online payment, POS services, and domestic fund transfer.
- You can spend money as much as you have recharged the card in advance.
- These cards are independent of the bank account and the maximum amount that can be stored is Rs. 50,000.
- These are only for domestic usages.
Types of Cards – Fleet Card:
- Fleet cards can be used to pay for vehicle maintenance and expenses, at the discretion of the fleet owner or manager.
- This can be used as a payment card, most commonly for gasoline, diesel, and other fuels at fuel stations.
- This will eliminate the cash transactions and also helps to prevent fraudulent transactions.
Types of Cards – FOREX Card:
It is known as Foreign Exchange card. It is used to hold foreign currency during international travels. There are 2 types of FOREX cards,
- Single currency FOREX card
- Multi-currency FOREX card
Get Here – Banking Awareness study Notes
Types of ATMs:
Apart from the different types of cards, here we provide you details of different types of ATMs.
- White Label ATM – They are owned and operated by non-bank entities.
- Brown Label ATM – Those ATMs were owned and maintained by a service provider and also cash management and networking are maintained by the sponsor bank.
- Green Label ATM – For Agricultural Transaction.
- Orange Label ATM – For Share Transactions.
- Yellow Label ATM – For E-commerce.
- Pink label ATM -For women banking.
- On-site ATM – These are within the premises of the bank.
- Off-site ATM – These are outside the bank premises.
- Mobile ATM – These are movable ATMs on wheels in different areas for the customers.
- Cash Dispenser – It is only for cash withdrawals, mini statements, and balance inquiries.
So, candidates prepare types of cards and ATMs for the upcoming bank exams.