Aula 22 - Cartão de crédito e débito - Curso BNB
Introduction to Debit and Credit Cards
In this section, the instructor introduces the topic of debit and credit cards, highlighting their importance in daily life and mentioning that the focus will be on definitions and key concepts.
Definition of Debit and Credit Cards
- Debit cards allow users to make immediate deductions from their bank account balance.
- Transactions with debit cards require entering a PIN in a system called "points of sale" (POS).
- Nowadays, payments can also be made using NFC (Near Field Communication) technology for contactless transactions.
- Credit cards allow users to make purchases without having the money upfront.
- Credit card transactions are paid later, usually on a monthly basis.
- Banks may set credit limits higher than an individual's income, leading to potential financial difficulties if not managed properly.
Differences between Debit and Credit Cards
- Debit cards deduct funds directly from the user's bank account at the time of purchase.
- Credit cards allow users to pay for purchases after they have been made.
- Credit card debt can accumulate quickly due to high interest rates, often reaching 400% per year in Brazil.
- Failure to pay credit card bills can result in entering a cycle of revolving credit with increasing debt.
Card Features and Security Measures
This section discusses additional features and security measures related to debit and credit cards.
Card Features
- Most modern debit and credit cards contain a chip for enhanced security.
- Older cards had only a magnetic stripe on the back for transaction processing.
- The CVV (Card Verification Value) is a three-digit code located on the back of the card used for online payments.
Five Participants Involved in Card Transactions
- Cardholder: The person who possesses and intends to use the card for purchases.
- Establishment: The business or company that accepts card payments.
- Acquirer: The entity responsible for facilitating communication between the establishment and the card network.
- Card Network: The company that handles transaction communication between the acquirer and the card issuer.
- Card Issuer: The bank or financial institution that issued the debit or credit card to the cardholder.
Communication Flow in Card Transactions
This section explains the flow of communication in card transactions, involving different participants.
Communication Flow
- The establishment communicates with the acquirer regarding a transaction.
- The acquirer communicates with the card network on behalf of the establishment.
- The card network communicates with the card issuer to authorize or decline the transaction.
Timestamps are provided for each section to help locate specific information in the transcript.
Understanding the Role of Card Brands
This section explains the role of card brands in facilitating transactions between acquirers and card issuers, as well as standardizing cards and technologies for universal acceptance.
The Function of Card Brands
- Card brands are responsible for communicating transactions between acquirers and card issuers.
- They also ensure standardization of cards and technologies to enable their use at any accepting establishment.
Identifying Card Brands
- Common card brands include Visa, Mastercard, American Express, Diners Club International, and more.
- The brand can be identified by looking at the first six digits of the card number, known as the BIN (Bank Identification Number).
The Issuer of the Card
- The issuer refers to the financial institution or card administrator that determines credit limits, approves transactions, issues statements, charges fees, and offers additional services.
- Typically, banks are the ones issuing cards.
Services Offered by Card Issuers
- Card issuers provide various services such as insurance coverage for the card, installment payment options for bills, loans on the credit card, additional cards for authorized users, and rewards programs.
- Rewards programs allow users to earn points that can be redeemed for various benefits like airline tickets or purchases.
Benefits of Using Credit Cards
This section highlights some advantages of using credit cards wisely.
Participating in Rewards Programs
- By using credit cards responsibly, individuals can participate in rewards programs offered by card issuers.
- These programs allow users to accumulate points that can be used for various purposes like purchasing goods or booking flights.
Flexibility with Points
- Points earned through rewards programs can often be used for a wide range of purposes including travel bookings and purchases at different establishments.
Summary
- Card brands play a crucial role in facilitating transactions between acquirers and card issuers, as well as ensuring standardization of cards and technologies.
- Common card brands include Visa, Mastercard, American Express, Diners Club International, and more.
- The issuer of the card is typically a financial institution or card administrator that determines credit limits, approves transactions, issues statements, charges fees, and offers additional services.
- Card issuers provide services such as insurance coverage for the card, installment payment options for bills, loans on the credit card, additional cards for authorized users, and rewards programs.
- By using credit cards responsibly, individuals can participate in rewards programs and earn points that can be redeemed for various benefits like airline tickets or purchases.