Cards and Payment Domain

Understanding Credit Card Payments Have you ever wondered what happens when you make a payment with your credit card? The entire process is seamless and fast, but behind the scenes, it involves several important steps that ensure the transaction is secure and smooth. Let’s Break It Down: 1. Consumer Ready to Make a Purchase The transaction begins when you decide to make a purchase. Whether you’re shopping in a store, online, or using a mobile wallet, you provide your payment information In-store: You swipe, tap, or insert your card into the Point-of-Sale (POS) terminal. Mobile Wallets: In mobile transactions like Apple Pay, your card details are sent via Near Field Communication (NFC) to the POS. Online Shopping: You manually enter your card details or use an online wallet like PayPal. 2. POS System Transmits Data ...

  The Power of a 3.37x2.13-Inch Plastic Card Do you know the power of a 3.37x2.13-inch plastic card? This tiny piece of plastic can connect you to millions of merchants worldwide, transfer money across continents in seconds, and open doors to exclusive privileges. But how does it work? What magic happens behind the scenes of this little square of convenience? Just ask yourself, and don't worry if you don’t know. We will cover all the details in upcoming posts. Till now, we've just skimmed the surface of what we see when using payment cards. Now it's time to dive deeper into the payment domain and understand how it all works under the hood. Sometimes, it may feel like certain concepts are repeated, but they are necessary to build a deeper understanding and to answer some of the bigger questions that follow. When we make a payment, what happens? How is money transferred from one bank account to another? We say that a payment scheme facilitates this. Does the money go to...

What do CVV, CVV2, and CSC stand for? When shopping online or making phone transactions, you'll often be asked for your credit or debit card's card security code. These codes, known as CVV, CVV2, or CSC, add an extra layer of protection to ensure that only the cardholder can make a transaction. The most generic term for the security code on a credit or debit card is the Card Security Code (CSC) . While the name varies depending on the card network, the purpose remains the same: to protect cardholders from fraud by verifying that the person making the transaction has physical possession of the card. Different card networks use different names for this code: Visa calls it CVV (Card Verification Value), a 3-digit security code. MasterCard refers to it as CVV2 (Card Verification Value 2), also a 3-digit code. American Express uses the term CSC (Card Security Code), which is a 4-digit code. Card Network Term Used Digit Accepted ...

EMV CHIP, EMV Contact Less, Magnetic Stripe AND NFC What is the EMV Chip? EMV stands for Europay, MasterCard, and Visa . It is a global standard for credit and debit cards with chip-based technology . The EMV chip is a small, square microprocessor embedded in a card. Unlike the magnetic stripe, the chip uses secure encryption to store and process data. How does it work? When you use a card with an EMV chip , the chip generates a unique code for each transaction. The chip is difficult to clone , as it uses dynamic encryption . This means each time the card is used, a different cryptogram (transaction code) is generated, making it harder for fraudsters to copy or steal card information. Key Features of EMV Chip: Security : The chip provides better security because it uses encryption and generates a unique transaction code, reducing the risk of fraud. Authentication : The chip is used in "ch...

Embossing Name Most credit cards allow 20–25 characters, including spaces, for the cardholder's name. Some issuers may allow 26–28 characters, depending on their policies. If the cardholder's name exceeds the allowed length, the bank shortens it. Example: If the name is "Avul Pakir Jainulabdeen Abdul Kalam", it will appear as "A P J Kalam" on the card. If the name is "Avul Pakir Jainulabdeen Abdul Kalam", it will appear as "A P J Kalam" on the card Credit Card Number A credit card number is usually 16 digits long, but it can be between 12 to 19 digits, depending on the bank or card network. Formally, it is called the Primary Account Number (PAN). The number is unique to each card and is printed on the front. Note: Some newer cards, like metal cards, only show the embossed name on the front, with all other details on the back. A 16-digit credit card number is divided into...

  A credit card is a type of payment card issued by a bank or credit card provider. It allows you to buy goods, services, or withdraw cash on credit. When you use a credit card, you borrow money that needs to be repaid later. In simpler terms in banking language: A credit card is a credit facility provided by a bank or credit card issuer. It comes with a pre-approved credit limit based on your financial credibility. This limit allows you to make purchases, complete online transactions, and repay the amount within your billing cycle each month. Nowadays, many banks offer a variety of credit cards. These cards can be made of plastic or even metal, depending on their type. A credit card typically looks like this: Anatomy of a credit card A credit card has two sides, front and back. Each part is as important as your password. Front Side Card holder Name: The name of the card owner printed on the card. Known as the "embossed name" in payment terminology. Car...