Paying with a Card

Paying with a Card

What’s on a Credit Card?

The front of a typical credit card:
1.Issuing bank logo
2.EMV chip
3.Hologram
4.Credit card number
5.Card brand logo
6.Expiry Date
7.Cardholder’s name

The reverse side of a typical credit card:
1.Magnetic Stripe
2.Signature Strip
3.Card Security Code

Types of credit card

Definition of a credit card A card that allows holders to buy or pay for goods or services, even if they do not have sufficient funds in their bank account at the time. The money will be charged for by the day as set out in the contract (usually by the end of the month).

Credit cards issued by Banks Credit cards are sometimes issued by banks in partnership with a corporation, club or institution. The mechanism is the same but it has two particularities:

• The commission that the bank charges to the seller is split between the bank and the partner
• Holders showing/using the credit card are giving publicity to the corporation/club, chosen by them.

Credit Card Issued by a Megastore/Department Store Its use is restricted to their shops. Sometimes offers additional discounts and/or benefits, e.g. free parking.

Debit card This is a card that allows holders to buy/pay only if they have enough in their bank account at the time. So, it is more a means of payment than a credit instrument.

Using an ATM Usually both credit and debit cards allow users to withdraw money from ATM.

Revolving credit card Similar to a credit card, but allows the user to defer the payment through a flat amount, as if it was a loan for the holder. Monthly repayment frees more credit for future withdrawing.

Prepaid card A card that allows buying up to the limit of the money that has previously been loaded on it - frequently received as a gift (children, friends, employees, etc.)

Virtual credit card Issued by some banks to prevent frauds on the use of cards on the internet - a prepaid credit card (no plastic), that allows buying up to the limit loaded on it and sometimes with a very short expiration date.

How use credit cards through internet (link to Dolceta Financial Services)

Consumers should be aware of the following technical and legal advice:

• Ensure visualisation of the padlock in the browser bar
• The direction of the page web (URL) that appears in the navigation bar must begin by “https”, not “http”
• Important to read and verify the privacy policy of the web through which the transaction is being conducted
• Read the credit card contract very carefully to know your rights and liabilities that would arise from an unauthorized use of your credit card
• Review your credit card statement monthly to verify that all the charges are correct.
• Procedure - see Financial Services section for more information (Financial Services - Means of Payment: Debit and Credit Cards)
• Introduce the name of the person who is buying (and other contact information if needed)
• Introduce the name of the holder of the credit card who is going to pay (not always is the same; parents buying for their children, for instance)
• Give the number and the expiration date of the card
• Additionally, in order to increase the transaction safety, two more data could be requested:
• Security number from the back of the card
• Before ending the transaction, the web page will ask for your mobile number. An additional code will be sent immediately to your mobile, code that you have to include in order to finish the transaction. This system reduces the possibility of fraud.

Where a credit card be used?

A credit card can be used in any establishment where its use is accepted as means of payment. The key point is you see the logo of your credit card, not the necessarily the Bank that issued it. So, you can use your credit card in shops, restaurants and hotels around the world, or to book airline tickets, concert tickets, books and clothes, even if your credit card is linked with a local bank.

Cross-border problems

In the case of problems with transactions made in foreign countries, you can be helped firstly by your Bank and, if it does not work, by the existing national complaint schemes for financial services, joined together in a co-operation network: the cross-border out-of-court complaints network for financial services (FIN-NET) http://ec.europa.eu/internal_market/fin-net/index_en.htm

For Further Information

National Consumer Agency www.itsyourmoney.ie

European Consumer Centre Ireland www.ecic.ie

Fact sheet: Making a Complaint

Dolceta Financial Services (Means of Payment: Debit and Credit Cards)

Dolceta Teachers Corner - Lesson Plan: Shopping Online (Post Primary)

Fact Sheet in Word/PDF:

Paying with a Card

Dolceta Glossary:

Link to Glossary