Money, money circulation and credit
Шрифт:
Integrated circuit card (smart card) – memory card. Instead of magnetic stripe it has a built in microcircuit (microprocessor) which itself keeps an information about holder’s banking account current status and confirms availability (or absence) of required sum. As a result the speed of such cards authorization in passing through a terminal station is much higher – 5-10 seconds. Their information capacity is much bigger than the cards with magnetic stripes have but they are more expensive.
One of modifications of smart cards is «an electronic wallet». The conception of its creation is quite new and only high-powered card systems make its issue. Unlike the common plastic cards the electronic wallets are not linked to the client’s current banking account absolutely. It is «charged» on a definite sum of money thus the settlements made with its help do not require any authorization.
During an electronic wallet purchase in bank in the form of a definite type of card it is «empty». It could be purchased by a some money place to a common account which wouldn’t be refilled before the full write-off this sum. This sum is an amount of an electronic wallet’s «charge», i.e. this sum is at holder’s disposal during the purchases of goods and services. When the sum will be exhausted an electronic wallet could be «charged» again.
As can be seen from the above it plays role of a sort of a money vault electronically. Due to its limited capacity its loss doesn’t result any heavy losses thus it doesn’t require any costly systems of protection and holder identification, i.e. it is anonymous.
Nowadays magnetic cards are most popular. But experts say that smart cards are future. Recently a substantial increase of exactly this type of cards usage as a mean of payment is observed.
Cards could be separated according to identification information spread method (card holder name, number, term of validity, etc.). These data could be inserted by an embossed print (pressed) by a special machine (embosser) and this card is called embossed.
On non-embossed cards this information is burned out and as a rule such cards are intended only for an electronic usage.
According to the functional characteristics banking cards are separated on credit cards and debit cards. Credit card allows its holder to receive a definite credit during the payments for goods or services the cost of which is higher than a bank account balance pegged to the card (card account).
The debit card owner can make payments for the purchased goods and services and to cash it in the cash machines only up to the amount available on the card account. In the USA the credit cards prevail, in Kazakhstan – debit cards which consist the bigger part of all payment cards.
Both credit and debit cards can be individual and corporate. The individual cards (Customer cards) are issued only to private persons and corporate – only to companies (enterprises).
Corporate card is linked to a companies’ account and can be issued only on a companies’ employee for payment of expenses coming from his business activity and official trips.
In a frame of cards classification on individual and corporate to a separate type the family cards could be divided. They are issued as individual only to private persons but also as corporate could be issued separately for every family member of a card account owner. Family cards in some specified sense are analogue to corporate – the right of making payments under the fixed limits is allowed to the card’s holder family members. Whereby the additional users are supplied with separate personalized cards.
Banking cards could be either separated according to payment systems or Card Associations in frames of which services are rendered. The most widely spread in the world are the cards of the following systems: VISA, EuroCard/MasterCard and American Express (AMEX). One card could be supported and served only by one payment system.
One more type of cards issued in the frame of payment systems is electronic cards. Many payment systems have them. In VISA for example it is VISA Electron, in MasterCard – Maestro. As was mentioned before such cards are non-embossed and intended only for electronic application. They could be cashed in cash machines and used for making payments for the goods and services purchased in the points of sale equipped with special electronic terminals. There are electronic cards which are intended only for getting cash money in cash machines, for example in MasterCard system the card Cirrus.
Virtual money is a special type of electronic money and its appearance is linked to the Internet opportunities. Nowadays there are a vast number of different services rendered in the Internet and paid by cybercash.
Thus it is possible to make shopping in the cybershops, to visit a cyber casino, to take up the shares, to use the analytical information, to get the consulting services, etc. For the goods and services payments via Internet there are some cyber payments systems intended for quick and secure settlements between the numerous of users. Money in these systems are represented by digits, thus it is called digital money.
Digital money could be kept on a computer hard drive or on a memory of smart cards (microprocessing plastic cards). The emission of digital money is also performed by bank which serves the cyber payment system. The issued digital money are provided by the means kept on the client’s banking account. Special security measures and tariff policy make the usage of these cards cost effective and reliable.
Nowadays throughout the entire world the co-branded plastic cards are very popular. Recently they are actively implementing into the CIS countries. Co-branded credit and depositary cards are the cards issued by banks and some companies collaboratively. They allow not only making payments of the goods and services but either give an opportunity to receive discounts and bonuses form a company- partner of the bank.
Abroad the co-brands constitute the best part of all plastic cards. Thus in Europe every fifth card is co-branded and in USA – every second.
The most successful and numerous cards are the cards which are issued in cooperation with the gross trade networks and supermarkets, they consist about 60 % of all the co-brands in the world. On the second place are the projects with the airline companies (about 10 %), then the projects with the petrol station chains and cellular service providers follow (5 % of each).
The most attractive in such cards for consumers is «cashback» – bonuses calculation for each purchase, usually it is 1-2% from the goods cost. The amount accrues gradually and in the end of the year the client can get it.
As to the co-brands with the airline companies here the client gets not only a money interest but the bonus miles either which in following can allow to get a free of charge ticket, to upgrade a service class or to book a hotel room.
Such projects require a heavy spending, large marketing work and motivation of both sides. It is not enough only to issue the card, it is necessary to implement it into the market actively. Herein it should be noted that the usage of co-branded plastic cards is very profitable form of sales. According to the statistics the turnover of these cards in the sales and service networks is on 30 % higher than of common.