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Contents

What Does Credit Card Mean? How credit cards work? Features: Benefits to customers: Grace period: Parties involved: Security problems and solutions: Fraud: EXAMPLE: Promotion: Credit card numbering: Design: The Manufacturing Process:

Quality Control: Advantages: Disadvantages: Transaction steps: PROCESS OF CREDIT CARDS:

Basic Background about Credit Card Numbers and How They Work: The Future: Credit card companies love college students: Lowes project card overview:

What Does Credit Card Mean?


A credit card is a small plastic card issued to users as a system of payment. It allows its holder The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. A card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Credit cards charge interest and are primarily used for short-term financing. according to the individual's credit rating. Interest usually begins one month after a purchase is made and borrowing limits are pre-set

to buy goods and services based on the holder's promise to pay for these goods and services.[1]

How credit cards work?


Credit cards are issued by a credit card issuer, such as a bank or credit union, after an account has been approved by the credit provider, after which cardholders can use it to make purchases at merchants accepting that card. Merchants often advertise which cards they accept by displaying acceptance marks generally derived from logos or may communicate this and Z)", or "We don't take credit cards". When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder indicates consent to pay by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a card not present transaction (CNP). Electronic verification systems allow merchants to verify in a few seconds that the card is valid and the credit card customer has sufficient credit to cover the purchase, allowing the verification to happen at time of purchase. The verification is performed using a credit card payment terminal or point-of-sale (POS) system with a communications link to the merchant's acquiring bank. Data from the card is obtained from a magnetic stripe or chip on the card; the latter system is called Chip and PIN in the United Kingdom and Ireland, and is implemented as an EMV card. For card not present transactions where the card is not shown (e.g., e-commerce, mail order, and telephone sales), merchants additionally verify that the customer is in physical possession of the card and is the authorized user by asking for additional information such as the security code printed on the back of the card, date of expiry, and billing address. orally, as in "Credit cards are fine" (implicitly meaning "major brands"), "We take (brands X, Y,

Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, any outstanding fees, and the total amount owed. After receiving the statement, the which limits cardholder liability for unauthorized use of a credit card to $50, and the Fair Credit Billing Act for details of the US regulations). Otherwise, the cardholder must pay a defined minimum proportion of the bill by a due date, or may choose to pay a higher amount cardholder may dispute any charges that he or she thinks are incorrect (see 15 U.S.C. 1643,

up to the entire amount owed. The credit issuer charges interest on the amount owed if the balance is not paid in full (typically at a much higher rate than most other forms of debt). In issuer may impose a "late fee" and/or other penalties on the user. To help mitigate this, some financial institutions can arrange for automatic payments to be deducted from the user's bank accounts, thus avoiding such penalties altogether as long as the cardholder has sufficient funds. addition, if the credit card user fails to make at least the minimum payment by the due date, the

Features
As well as convenient, accessible credit, credit cards offer consumers an easy way to track expenses, which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes. Credit cards are accepted worldwide, and are available with a large variety of credit limits, repayment arrangement, and other perks (such as rewards schemes in which points earned by purchasing goods with the card can be redeemed for further goods and services or credit card cash back). Some countries, such as the United States, the United Kingdom, and France, limit the amount for which a consumer can be held liable due to fraudulent transactions as a result of a consumer's credit card being lost or stolen.

Benefits to customers
The main benefit to each customer is convenience. Compared to debit cards and cherubs, a credit card allows small short-term loans to be quickly made to a customer who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card. Credit cards also provide more fraud protection than debit cards. In the UK for example, the bank is jointly liable with the merchant for purchases of defective products over 100 Many credit cards offer rewards and benefits packages, such as offering enhanced product warranties at no cost, free loss/damage coverage on new purchases, and points which may be redeemed for cash, products, or airline tickets.

Grace period
A credit card's grace period is the time the customer has to pay the balance before interest is assessed on the outstanding balance. Grace periods may vary, but usually range from 20 to 50 days depending on the type of credit card and the issuing bank. Some policies allow for reinstatement after certain conditions are met.

Usually, if a customer is late paying the balance, finance charges will be calculated and the

grace period does not apply. Finance charges incurred depend on the grace period and balance; with most credit cards there is no grace period if there is any outstanding balance from the previous billing cycle or statement (i.e. interest is applied on both the previous balance and new transactions). However, there are some credit cards that will only apply finance charge on the previous or old balance, excluding new transactions.

Parties involved

Cardholder: The holder of the card used to make a purchase; the consumer. Card-issuing bank: The financial institution or other organization that issued the credit card to the cardholder. This bank bills the consumer for repayment and bears the risk that the card is used fraudulently. American Express and Discover were previously the only card-issuing banks for their respective brands, but as of 2007, this is no longer the case. Cards issued by banks to cardholders in a different country are known as offshore credit cards.

Merchant: The individual or business accepting credit card payments for products or services sold to the cardholder. Acquiring bank: The financial institution accepting payment for the products or services on behalf of the merchant. bank. Merchant account: This could refer to the acquiring bank or the independent sales organization, but in general is the organization that the merchant deals with. Credit Card association: An association of card-issuing banks such as Visa, MasterCard, Discover, American Express, etc. that set transaction terms for merchants, card-issuing banks, and acquiring banks. Independent sales organization: Resellers (to merchants) of the services of the acquiring

Transaction network: The system that implements the mechanics of the electronic operate multiple networks.

transactions. May be operated by an independent company, and one company may

Affinity partner: Some institutions lend their names to an issuer to attract customers of the balance for each card issued using their name. Examples of typical affinity

that have a strong relationship with that institution, and get paid a fee or a percentage partners are sports teams, universities, charities, professional organizations, and major retailers.

Security problems and solutions

This is the age of plastic money. It's not uncommon for the typical consumer in the western world to go weeks at a time without ever handling a coin or bill. Everything we need is available to us with the simple "swik-swik' sound of a credit card sliding through a reader. Supplies for the office, flowers for the wife, meals and drinks out, and an endless supply of be seen. useful products available for sale through the Internet can all be bought with naught a cent to

The big question is: "How safe is all this plastic?" Cash has its obvious benefits. When you buy a sandwich for $2.95 and you hand the cashier a $5 bill, you know you haven't been ripped off when he hands you $2.05 right then and there. But when you and your card to a waitress at the local chain restaurant, how do you know she hasn't taken a moment to sneak into the office and copy your card number and signature? You don't, and the implications of this question are having a serious effect on credit card companies and the merchants they do business with.

In response to these issues, the big credit card companies have developed more secure ways to do business. MasterCard International and Visa got together and came up with a set of guidelines called the Payment Card Industry Data Security Standards. This is a list of 12 guidelines that imposes strict regulations on all transactions taking place between the card company and the merchants it trades with. While these standards have been in place since 2005, merchants are taking some time to catch up to them. However, in the past year there has been marked improvement, and both credit card companies have stepped up their tactics to the point where merchants may be experiencing losses of service if they do not fall in line soon. (You can read the 12 guidelines and the details of this plan on the homepages of Visa or MasterCard.) Discover Card has responded to the pressure for more secure methods with it's own program. They call it the Secure Online Account Number program. Anytime you use your Discover card in" for the one on your card. You then send this number to the merchant in place of the real number. When the number is verified with Discover Card, it will link to your account and the account number. Only you and Discover Card have access to it. Once the transaction is result in denial. A security method that online merchants are employing is the requirement of a shipping address that matches the billing address on your credit card. This is to guard against thieves who may steal your account number but will have no access to your billing address. This way, prospective thieves will have to pick up their orders from your mailbox, not something the average anonymity-seeking thief will want to do. There are also third party systems in place for ensuring online credit card security. VeriSign's SSL (Secure Sockets Layer) technology is the leader in the field. VeriSign will give each merchant it conducts business with 2 "keys" (like coding alphabets), a public key and a private key. The public key is used to encrypt information, and the private key is used to decipher it. VeriSign's technology now offers this encryption in 128- to 256-bit encryption, which provides a nearly un-guessable number of possible combinations of codes. if your card is stolen, it can only be used to make purchases that will ship to your address. Any purchase is charged to you. The benefit of this system is that the merchant never sees your true completed the randomly generated account number is no longer valid, so any attempts to use it to purchase a product online, their program will generate a random account number to "stand-

Fraud

In relative numbers the values lost in bank card fraud are minor, calculated in 2006 at cost of fraud was over 500 million.[19] When a car is stolen, or an unauthorized duplicate made, most card issuers will refund some or all of the charges that the

7 cents per 100 dollars worth of transactions (7 basis points).[18] In 2004, in the UK, the

customer has received for things they did not buy. These refunds will, in some cases, be at the expense of the merchant, especially in mail order cases where the merchant cannot claim sight of the card. In several countries, merchants will lose the money if no ID card was asked for, therefore merchants usually require ID card in these countries. Credit card companies generally guarantee the merchant will be paid on legitimate transactions regardless of whether the consumer pays their credit card bill. Most banking services have their own credit card services that handle fraud cases and monitoring and investigation are often placed in Risk Management, Fraud and monitor for any possible attempt at fraud. Employees that are specialized in doing fraud Authorization, or Cards and Unsecured Business. Fraud monitoring emphasizes minimizing fraud losses while making an attempt to track down those responsible and contain the situation. Credit card fraud is a major white collar crime that has been put into practice in some countries to prevent cases such as these. Even with the implementation of such measures, credit card fraud continues to be a problem. around for many decades, even with the advent of the chip based card (EMV) that was

EXAMPLE

False Affiliation with Visa/MasterCard through telecalling.

"Im calling from the Credit Card Security Centre of First Capital, regarding the security on your VISA/MC accounts. There is no need to be alarmed, however due to an increase in computer related frauds we have made some very important changes to our policies, and we are trying to reach all cardholders ASAP. My job here today is simply to inform you of these changes and update our files. We have you at [address]. Id like to issue you the new 1-800number to call in the event your card is lost or stolen or if an unauthorized charge appears on your statement."

"Verification"
Finally, First Capital directs its telemarketers to "transfer" the cardholder to a "Verification Officer," who then ostensibly records the cardholders "verification" of his or her authorization and assent to purchase First Capitals program.

"The last step to complete this process is to speak with a security verification officer. He or she will make sure you understand everything."

In fact, First Capital fails to make sure cardholders "understand everything," in that its

"confirmation" or "verification" omits materials terms of the deal and fails to rectify false impressions and half-truths introduced earlier in unrecorded portions of the telemarketing call.

ILLUSTRATIVE RECORDED TELEMARKETING CALL


The following is taken from an audio tape of a telemarketing call on August 17, 1999 between First Capital and a witness cooperating with the FBI. Shane Douglas: Shane: "Maam this is Shane Douglas from First Capital Visa MasterCard. Its regarding the security on your account. Weve had a problem with computer fraud." "And youre also going to be issued your verification number by a verification officer. So I do need you to get one of your cards, a pen and a paper while I hold on for you maamI will verify one of your accounts to be sure you are the proper cardholder and you are in good standings." Cooperating Witness ("CW"): Shane: Shane: CW: "Yes, yes, we have that information maam." "You wanted me to read you your number maam, beginning with the 4? Is that what you meant? Yes. "Youre going to tell me what my number is."

Shane: CW: Shane: Shane: CW: Shane: Shane: CW: Shane: CW: VOICE IN BACKGROUND: Shane:

"Okay. That is against the law maam. Until I know I am speaking to the proper cardholder." So I need to read it to you? "Yes. There is a federal law, maam." "And youre speaking with Officer Shane DouglasFirst Capital is the Fraud Division of Visa MasterCard." "Thats called First Capital?" "Yes. We are the Fraud Division of Visa MasterCard." "So you want the address of the Fraud Division?" "Right." "Okay. I am going to just okay that with my supervisorAnd it will take a half a second." Alrighty. "Make one up. Make one up." "Yes, maam? Im sorry about that. I had to speak with a supervisor to make sure that information can be authorizedOkay? I am prepared to give that to you now." All right. I've got a pencil. "Okay. The offices are 1143Patrick Street, Buffalo, New York and that is Suite 502." "I feel real nervous about giving you my number over the phone. Cant I mail it to you or something?" through---" "Ah, its a simple verification process, maam which all cardholders must go

CW: Shane (giving incorrect address): CW: Shane:

CW (after

requesting a supervisor): Christopher Johnson (supervisor):

"Im kinda nervous about giving my number over the phone just cause I dont know who you are"

"Well, its information we already have, we just have to make sure we verify it. I would love to be able to authorize him to read you the card number for youbut by federal law were, were just not required to do it, we cant do itBut if its any consolation to you at all, unless youre signing a sales draft, you cannot be held liable for any chargesIts a simple verification process; it just goes into the computer to verify the information we already have."

CW: Chris: CW: Chris:

"Are you an officer as well?" "Yes, maam." "But wouldnt an officer work for a Sheriffs Department or something--" "No, you see, what happens is we go through a rigorous process over which they check everything out and you are issued a federal badge number at the end of it all. And thats it. And we investigate fraud for Visa and MasterCardWere MasterCard office there." actually in Buffalo, New York. Were the office right next door to the Visa and

CW: Chris:

"And then if I give you my number you send me what?" "Okay. We send you your package. Okay? Which basically gets you your 100% coverage back again, but you have 30 days before making any final decision on anything anywayIts a zero-risk policy, maam; no one can make you take it." "But we are required by federal law to tell you that you do not have your 100% protection any more. As we did every other Visa and MasterCard holder." "When did it expire?" "Last December Visa and MasterCard decided they would no longer be covering for computer fraud for the simple reason that they can no longer financially support it. Its just -- its so bad now."

Chris CW: Chris:

Chris:

"right now you are 100% liable on all charges unfortunately. See we want to

get you your 100% coverage back again. You are protected for 30 days for free while you are reviewing the package and making your decision whether you wish to keep it or notAnyway, like I said, the package comes to you in 10 days after verification by courier, at which point your 30 days of free coverage begins while you go through it and decide whether you want to keep it or notAnd thats it. Youre under no obligation whatsoever." CW: Chris: "Well, it sounds good and I would like to do it but Im just, Im just too afraid to--" "I totally understand maam, but like I said, it cannot be used against you any shape, way or form, were the same company that has been protecting you all these years. We have been doing it for Visa and MasterCard for 13 years. I mean we are your security service. Its a simple verification that cannot be used against you in any way. Just-- we just have to make sure your the authorized cardholder before we can you out your package." Chris: CW: Chris: Chris: CW: Chris: "A credit card is basically nothing. I mean, ah, you know, just the number--" "Oh, well how come they--how come they always say make sure and rip up your receipts" "No, as, as long as you dont sign it youre fine." "Well, when hackers penetrate the database, maam, theres not very much you can do about that." "But I thought I wouldnt be responsible anyway." "Up until December that was trueup until last December, if you were defrauded, you simply called a number on the back of your card and then Visa MasterCard would fax it over to us, we would investigate it for 48 hours at which point we would turn it over to the insurance company and they would take care of itIts just that they wont cover it anymore." CW: Chris: "If I could mail you the money in or you could mail me something that would be great, but I really dont feel" comfortable giving my number over the phone. "Like I said, maam, its a simple verification that cannot be used against you in any way."

CW: Chris:

"Yeah, but this way I dont have to stay awake at night worrying about it --" "-- because unfortunately without going through verification it does go in as a decline and in the event you are defrauded it basically says that you have been explained everything and you are assuming 100% liability on all charges."

Promotion

Promotional purchase is any purchase on which separate terms and conditions are set on each individual transaction unlike a standard purchase where the terms are set on the cardholders account record and their pricing strategy. All promotional purchases Balance. that post to a particular account will be carrying its own balance called as Promotional

Credit card numbering


The numbers found on credit cards have a certain amount of internal structure, and share a common numbering scheme. The card number's prefix, called the Bank Identification Number, is the sequence of digits at the beginning of the number that determine the bank to which a credit card number belongs. This is the first six digits for MasterCard and Visa cards. The next nine digits are the individual account number, and the final digit is a validity check code. In addition to the main credit card number, credit cards also carry issue and expiration dates (given to the nearest month), as well as extra codes such as issue numbers and security codes. Not all credit cards have the same sets of extra codes nor do they use the same number of digits.

Design
Credit cards are designed with complex security features to prevent the possibility of fraud. These features involve the card's account number, its signature panel, and its magnetic stripe. The card's unique account number is the key piece of information needed to conduct a

financial transaction and must be carefully protected. To prevent someone from using a wrong account number, or from making up a phony number, companies rely on the laws of statistics for protection. By using long account numbers they make it unlikely that a number can be faked. For example, the Visa card has 13 digits, American Express has 15, Diners Club 14, and MasterCard has 20. Mathematically, nine digits would provide one billion unique account numbers (000000000, 000000001, 0000000002, and so forth up to 999999999) which would be enough for all the customers of a given company. (The largest companies, Visa and

MasterCard, only have about 65 million customers.) If only 65 million numbers are assigned out of a possible 10 trillion possibilities, it is unlikely that anyone will be able to mistakenly use another account number. If an incorrect account number is mistakenly entered by a store clerk, it will almost certainly not be accepted. This statistical security gives companies confidence that someone is not making up a number when conducting business over the phone. Of course, this security measure does not help if someone obtains a real number and uses it fraudulently. Another security design feature involves the signature panel on the back of the card. The signature is intended to document the owner's handwriting so a forged signature on a receipt can be detected. To prevent criminals from erasing the back panel of a stolen car and putting on their own signature, the panel is printed with a fingerprint design that is difficult to

duplicate and that will come off when the original signature is erased. If the signature is erased, this design will disappear too leaving a white spot, which instantly indicates the card has been tampered with. Some card manufacturers imprint the word VOID beneath this panel, which is revealed upon erasure.

The magnetic stripe on the back of the card is a third security feature. The stripe is an area coated with particles of iron oxide that can be encoded with binary information, which identifies the card as authentic. It is difficult to determine exactly what information is coded on the strip because for security reasons companies do not wish to discuss this. However, it is likely that the card's expiration date is one fact recorded on the strip because automatic teller machines (ATMs) will retain cards that have expired. It is unlikely that information like credit limit, address, phone number, employer, is recorded on the stripe because banks do not reissue cards when this type of information changes.

Finally, some cards feature special features that make them hard to duplicate, such as complicated holograms.

The Manufacturing Process


The manufacturing process consists of multiple steps: first the plastic core and laminate materials are compounded and cast into sheet form; then the core is the printed with sheet is cut into individual cards. appropriate information; next the laminates are applied to the core; and finally the assembled

Plastic compounding and molding

1 The plastic for the core sheet is made by melting and mixing polyvinyl chloride

acetate with other additives. The blended components are transferred to an extrusion molding apparatus, which forces the molten plastic through a small flat orifice known as a die. As the sheet exits the die, it goes through a series of three rollers stacked on top of each other that pull the sheet along. These rollers keep the sheet flat and maintain

As the sheet exits the die, it goes through a series of three rollers stacked on top of each other that pull the sheet along. These rollers keep the sheet flat and maintain the proper thickness. The sheets may then pass through additional cooling units before being cut into separate sheets. The proper thickness. The sheets may then pass through additional cooling units before being cut into separate sheets by saws, shears, or hot wires. The cut sheets enter a sheet stacker that stacks them into place and stores them for subsequent operations.

2 The laminate films used to coat the core stock are made by a similar extrusion process. These thinner films may be made with a slot cast die process in which a molten plastic film is spread on a casting roller. The roller determines the film's thickness and width. Upon cooling the films are stored on rolls until ready for use.

Printing

3 The plastic core of the card is printed with text and graphics. This is done using a variety of common silk screen processes. In addition, one of the laminate films may also magnetic stripe may be added by a hot stamping method. The magnetic heads used to code and decode the iron oxide particles can only operate if the magnetic medium is close to the surface of the card, so the metal particles must be placed on top of the laminating layer. Upon completion of the printing process, the core is ready to be laminated. undergo subsequent operations where it is imprinted with magnetic ink. Alternately, the

Lamination

4 Lamination helps protect the finish of the card and increases its strength. In this are located above and below the core stock. These rolls feed the laminate into the

process, sheets of core stock are fed through a system of rollers. Rolls of laminate stock vacuum shoes along with the core stock. The vacuum holds the three pieces of plastic together while they travel to a tacking station. At the tacking station a pair of quartz with reflectors to focus the radiant energy onto a narrow area of the films, which optimizes a smooth bonding of the film to the core stock. The laminate films are then fully bonded to the core stock by pressing with metal plates, which are heated to 266 F infrared heat lamps warm the upper and lower plastic films. These lamps are backed

(130 C) and applied with a pressure of 166 psi/sq inch. This lamination process may take up to 3 minutes.

Die cutting and embossing

5 After lamination has been completed, the finished assembly is cut and completed by die cutting methods. Each assembly yields a sheet, which is cut into 63 credit cards. This Each of the seven sections is then cut and trimmed to form nine credit cards. In is achieved by first cutting the assembly longitudinally to form seven elongated sections. subsequent operations, the card is embossed with account numbers. The finished cards are then prepared for shipping, usually by attaching the card to a paper letter with adhesive.

Quality Control
Key quality issues are associated with the compounding of plastic and colour matching of the inks. The American National Standards Institute has a standard for plastic raw materials (ANSI specification x4.16-1973). As with any compounding procedure, ingredients must be properly weighed and mixed and blended under the appropriate temperature and sheer conditions. Similarly, the molding process must be monitored to avoid defects, which could cause the cards to crack or break. The final quality check is to make sure the correct numbers are stamped on the cards during the embossing process. Advantages: 1. They allow you to make purchases on credit without carrying around a lot of cash. This allows you a lot of flexibility. 2. They allow accurate record-keeping by consolidating purchases into a single statement. 3. They allow convenient remote purchasing - ordering/shopping online or by phone. They allow you to pay for large purchases in small, monthly instalments.

4. Under certain circumstances, they allow you to withhold payment for merchandise which proves defective.

5. They are cheaper for short-term borrowing - interest is only paid on the remaining debt, not the full loan amount. 6. Many cards offer additional benefits such as additional insurance cover on purchases, cash back, air miles and discounts on holidays.

Disadvantages:
1. You may become an impulsive buyer and tend to overspend because of the ease of using really afford. 2. Credit cards are a relatively expensive way of obtaining credit if you don't use them carefully, especially because of the high interest rates and other costs. 3. Lost or stolen cards may result in some unwanted expense and inconvenience. 4. The use of a large number of credit cards can get you even further into debt. 5. Using a credit card, especially remotely, introduces an element of risk as the card details Fraudulent or unauthorized charges may take months to dispute, investigate, and resolve. may fall into the wrong hands resulting in fraudulent purchases on the card. credit cards. Cards can encourage the purchasing of goods and services you cannot

Transaction steps

Authorization:
The cardholder pays for the purchase and the merchant submits the transaction to the acquirer (acquiring bank). The acquirer verifies the credit card number, the transaction type and the amount with the issuer (Card-issuing bank) and reserves that amount of the cardholder's credit limit for the merchant. An authorization will generate an approval code, which the merchant stores with the transaction.

Batching:
Authorized transactions are stored in "batches", which are sent to the acquirer. Batches are typically submitted once per day at the end of the business day. If a transaction is not submitted in the batch, the authorization will stay valid for a period determined by the issuer, after which the held amount will be returned to the cardholder's available credit (see authorization hold). Some transactions may be submitted in the batch without prior authorizations; these are either transactions falling under the merchant's floor limit or ones where the authorization was unsuccessful but the merchant still attempts to force the transaction through. (Such may be the case when the cardholder is not present but owes the merchant additional money, such as extending a hotel stay or car rental.)

Clearing and Settlement:


The acquirer sends the batch transactions through the credit card association, which debits the issuers for payment and credits the acquirer. Essentially, the issuer pays the acquirer for the transaction.

Funding:
Once the acquirer has been paid, the acquirer pays the merchant. The merchant receives the amount totalling the funds in the batch minus either the "discount rate," "mid-qualified rate", or "non-qualified rate" which are tiers of fees the merchant pays the acquirer for processing the transactions.

Chargebacks:
dispute relating to the transaction. Chargebacks are typically initiated by the A chargeback is an event in which money in a merchant account is held due to a

cardholder. In the event of a chargeback, the issuer returns the transaction to the acquirer for resolution. The acquirer then forwards the chargeback to the merchant, who must either accept the chargeback or contest it. Credit card processing occurs every second of every minute of every hour of every day. Can you recall a time when we did not have credit cards and werent applying them all the time? They are so accessible that it is almost impossible to live without one; or three. All you have to do is leap

online, find something you want, enter some details and press a button. It is that simplified and we do not even stop to think about how it is done, or how hiring someone to do this process for us could improve our business and take away some of the tension and worry about money. It is only too common that while something is as easy as making a payment via credit card that we genuinely do not stop to think about how it is done and what happens when something goes incorrect, who is liable and worry about it while we sit back and unwind. what will happen to our money and product? That is why we ought let the professionals

PROCESS OF CREDIT CARDS

Credit card processing involves a company checking the credit card details and funds, making sure they are not insufficient and whether or not that credit card might have been stolen. This only takes a second and your purchase will either be accepted or declined right in front of your very eyes. If it is accepted then the money will be put into the merchants account via a company like flo2cash. If it is declined, then you better put some money on your credit are so many different ways that credit card processing can be done that it is a tad mind card or else no more purchases for you. See, it is not that difficult to understand, however there boggling. You never really think that one little bit of plastic could be the centre of so much technicality and technology ; that is why we should let someone else take care of it for us. So what are these different processes that are offered through these companies? Well, there is Web2pay (e-commerce), this accepts payments through your website either from your shopping cart or direct from an invoice. We all know what an online shopping cart is right? We go onto a site and add our products into a virtual cart that is waiting for us when we proceed to the checkout. Although, sometimes we can get a little crazy and when we get to that checkout we cannot afford it all. Luckily in cyber space there is no one to see us dump out a few products like there is when you are at an actual store surrounded by other shoppers and check out people. Another way is phone2pay (IVR), accept payment on the spot on completion of a job/service or straight from an invoice. This can be looked at as the ultimate alternative to mobile EFTPOS. A modern process offered by Flo2cash is VT2Pay. VT in VT2Pay represents Virtual Terminal. Virtual Terminal allows you to take credit card payments on-line, real-time via a secure interface. It is fundamentally an online version of the credit card swipe machines used in great result if you run a call centre or process mail orders or telephone orders manually. Credit card processing comes in all shapes and sizes and truly helps us understand what goes on when we swipe our cards or make those online purchases. If we take time out of our day to consider how companies could help handle our dealings and make our business run a bit be the most effective one you and your business will ever make. If you have always wondered what went and how it can benefit you and your company, give the professionals at a buzz right away! smoother with a lot of payment alternatives, we might be making a important decision. It could stores. They are very easy to use, and available to anyone with a Flo2Cash account. This is a

Basic Background About Credit Card Numbers and How They Work

Rather than ask you to take out a credit card out of your wallet to examine it, I've provided a picture of a prototypical card - in this case, it's a Visa credit card. While different card types States have 16 primary numbers on the front face of the card. Visa, MasterCard, and Discover cards all have 16 digits. American Express is the only major credit card issuer in the U.S. with is still guided by the same Luhn validation formula, the mathematical check sum equation that makes all valid credit card numbers error free. one less number - at 15 digits. Regardless of the length of numbers, their numerical sequencing offer different lengths of numerical digits, most major credit card issuers popular in the United

As you can see from the picture of the Visa card above, the very first 6 credit card number sequence is known as the issuer identification number (IIN) or bank identification number (BIN). These first 6 numerical digits denote the credit card network and the banking institution the card is a member of. The issuer identifier number also incorporates the card type's special identifying numerical prefix.

All typical 16 digits Visa account credit card numbers start with a prefix of 4. All 16 digits MasterCard account numbers start with a prefix of 5. All 16 digits Discover account numbers start with a prefix of 6011. All 15 digits American Express credit card numbers start with a prefix of 37.

There is less randomization during this initial set of 6 digits as the numbers are determined purely by the card issuing source. Validation systems that want to go the extra mile in verifying authenticity oftentimes scan this first numerical sequence to match the known bank and issuing location of the card with the provided customer billing address for further validation accuracy. The lone digit at the very right end of the complete 15 or 16 digit credit card number sequence is known as the "check digit", which often is the final number that is computer generated to satisfy the mathematical formulations of the Lehn check sum process. Meanwhile, in between the first 6 digits and the last single check digit is the actual personalized account number - the 8 or 9 digit sequence given by the card issuer. For more basic background information about about the embossed and printed information found on your typical plastic credit card. credit card numbers, check out this credit card features brochure for more useful knowledge

The Future

Future credit card manufacturing processes are likely to evolve in three key areas. First,

continued improvements in plastic chemistry and molding technology are likely to allow cards to be made increasingly cheaper and easier. Second, breakthroughs in digital technology are likely to improve the way credit cards are kept secure with advanced magnetic coding. One recent advance is the use of a new generation of magnetic stripes which are harder to duplicate. This improvement combats the trend toward duplicating card information and copying it to phony cards. Perhaps even more importantly, new generations of credit cards will carry integrated computer chips, containing a variety of useful information. For instance, these future cards will be able to operate a frequent flyer program on the same card as a debit or with merchants, including storing hotel reservation preferences. Financial institutions may credit account. Other services will allow users to participate in frequency or loyalty programs develop partnerships with local mass transit systems so public transit could be paid for with these "smart" cards in various cities throughout the world. Third, marketing initiatives resulting from these advances in card technology are likely to make credit cards even more pervasive in society. For example, American Express has just launched a new Blue card that is expected to reach new levels of worldwide acceptance.

Credit Card Companies Love College Students

College students are a credit card companys prime prospect. (If you havent seen the

documentary Maxed Out, rent it before you step foot on campus.) They like to get you while you out if you run up your credit card bill. Second, you have a long credit life ahead of you. That means lots of years of interest payments for the credit card companies.

youre young for a couple of reasons. First, they have a strong hunch that your parents will bail

Credit card companies are so hungry for college students, they approve applications even then students don't meet the criteria. For example, a college student can get a credit card with no job, no verifiable income, no credit history, and even without a co-signer.

Banks are getting more aggressive and creative in their efforts to pitch credit cards to college students by hawking cards near college campuses and striking exclusive partnerships with college alumni associations, according to a growing body of research.

Banks have also increasingly forged credit card partnerships with colleges. No national numbers are available on these deals. But by 2006, each of the largest 10 colleges and universities through their alumni or athletic associations had partnered with a bank to issue co-branded credit cards to alumni and students, earning the colleges up to millions in access at campus events. Colleges defend these partnerships as a way to offset severe cuts in state funding. But consumer groups worry that these alliances are encouraging students to sign up for products with high interest rates or fees, making it easier to get mired in debt. annual fees, the paper found. Banks often receive student information and exclusive marketing

Most students who responded to US PIRG's latest survey 1,584 students from 40 schools

were randomly surveyed on campus from October through February favored some form of card reform on campuses. Specifically, 38% of students supported a ban on schools or student groups receiving money from banks in exchange for the right to market credit cards on companies. advertising. Here are five tips to assist you reach your possible consumers: campus, while 67% opposed schools selling or sharing student information with credit card

LOWES PROJECT OVERVIEW

The Lowes Project Card is offered by GEMB. This card offers an unprecedented 0% APR for every new project window opened. During this time, interest does not accrue at all. You make monthly payments and if the project isnt paid off in 6 months then the interest starts to apply. In order to open a project window, you have to spend $1,000 at Lowes. Once your project window is open, you cannot open another one for 6 months. You can, after the six months are up, start a new project window at 0% APR while making payments on an existing project.

The interest rates for the Lowes Project Card are interesting. Rates start at 7.99% for your first project window. If you pay it off before opening another project window, then your new interest rate will still be 7.99%. If, however, you open a second project window while still paying on your first project window, then your second project will have an interest rate of 9.99% after the 6 months are at a single time up. The highest interest rate is 17.99% and that is if you have 4 or more project windows open