1. ELECTRONIC PAYMENT SYSTEM

2. 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.

3. 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

4. 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.

5. 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 per annum is eligible for card.
Annual charge is charged to the card holder.

6. 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

7. 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

8. 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

9. 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.

10. 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

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

12. 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.

13. 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

14. 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

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

16. 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

17. 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

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