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What are various categories of plastic cards?
Currently, plastic cards being in use worldwide can be classified upon various features:
- As to their type – credit, debit or chip cards;
- As to the class - maestro / electron, standard / classic, gold, platinum and virtual cards;
- As to holders – for individual and corporations, club / organization cards;
- As to geographic coverage – local and international cards;
- As to benefits associated with use of the card – bank, discount and bonus cards;
- As to issuer – bank and non-bank cards;
Servicing of transactions being carried with the cards is done through a number of systems. Such systems can be either local or international. Currently, two payment systems, and namely these are Visa Int. and Master Card Int. are largest ones with respect to scope of coverage, number of holders and members. Currently, these two companies occupy 86% of the worldwide market.
Along with the above, there are also internationally operating companies, providing their customers with a variety of benefits for getting a discount from a number of shopping facilities, benefiting from advantages when going on a leisure trip, using the services of a number of prestigious hotels, restaurants, rent-a-car’s, using the services of special VIP lounges in international airports, etc.. These include the most popular cards issued by Diners Club International, International Airline Passengers Association (IAPA), Countdown, European Travel Network, Hotel Express International (HEI). Holders of these cards, like any other card, can use their card for cash withdrawal purposes.
How to use a card
The following rules are designed to ensure safe and convenient use of the card. By following these rules, you may turn your card into an integral part of your everyday life and ensure the safety of your money.
- Validity term of the card is shown on its face.
- Important note: irrespective of the date of issue of the card, validity of the card will be until the end of the same month in the following year.
- If you loose your card, first of all notify your Bank! Once you pay a penalty for lost card, a customer can block a lost card. To do that, a card holder should answer certain questions asked by the expert of the Customer Services Department of the Bank for the purpose of identification of the card holder. Thereafter, upon wish of the customer, he can order a new card tied to the same card account. Where a customer along with the main card, uses an additional card, he will have a chance to use the additional card for the duration of its validity term.
- It is not advisable to write your PIN on the card, to keep information on PIN together with the card, or to disclose your PIN to another person. Otherwise, any person getting hold of your card can use money from your card account.
- Maximum number for incorrect PIN entries is 2. After the 3rd incorrect PIN entry, the card will be automatically blocked. Furthermore, if at that time the card is in ATM, the machine can “swallow” your card. In any event, you should notify the bank of blocked card.
- Do not allow any electro-magnetic, heat or mechanical impact upon your card.
- Important note: do not allow contact between the card and items with strong magnetic fields. It is not advisable to put your card on TV, computer and any other electronic device – otherwise, the card can be re-magnetized!
- When using ATMs and POS terminals, do not forget to take your card back. When doing so, make sure the card is yours and is not damaged.
- Where there is any dispute with respect to the amount stated on the receipt issued by ATM and POS terminal, contact your bank. Retain a copy of your payment slip, and reconcile it with the statement on your card account.
- When making purchases by card on the Internet, please keep the following in mind:
- When transacting, leave providing the information on the card to the last stage!
- First of all, collect detailed information on the site you are going to use.
- Make sure that information on details on the company selling goods or services, and contact information on the site is accurate, familiarize yourself with terms and conditions applicable to the payment for and delivery of the purchase goods or services.
- When you reach the page requiring submission of card information, please review Terms of use Agreement. These Agreement may contain important provisions on copyright and other important issues, and failure to take due note of such provisions, may, in future, cause you various problems.
- When making a purchase in shops, restaurants, hotels, leisure centers, please give due regard to the following:
- When making a card payment for the goods or services, require the card transaction to be carried in your presence. This will help you to avoid any unauthorized transaction and will protect you from negative situations.
- POS terminals issues two receipts. Once you check the identity of two slips and verify the accuracy of information printed therein, sign both receipts. Once that has been done, both slips should be signed by the cashier. You retain one slip, and the second is being taken by the seller.
- Do not sign a receipt which does not show the amount! Otherwise, any amount can be written in later and as a result you may end up with funds written off from your account.
- To periodically obtain information on the status of the card and transactions performed with the card, get card account statements. You can do this either by contacting branches and office of the bank, or by using Internet banking facility.
- If you have any questions related to any kind of matters associated with the use of the card, please get in touch with our Customer Services Department.
Note: to avoid some of the above mentioned problems and to get answers to your questions on how to use ATMs and POS terminals, please refer to the section on use of ATMs and POS terminals.
How to use ATM / Bank Dispensers
What is an ATM?
Bank Dispenser, or ATM, is an electronic device dispensing cash through use of a plastic card.
Main transactions which can be performed with ATM.
- Cash withdrawal.
- Receiving information on current status of the card account.
- Payment for services.
- Some ATMs will give you a chance to top up your card account.
ATM’s parts.
Various banks use various models of bank teller machines. However, irrespective of the model used, any such machine has the following parts:
- Card verification device.
- Cash dispensing device.
- Monitor (in some models a monitor will become operational only once you insert your card).
- 2 groups of buttons:
- 1st group – these are located at both sides of the monitor (without no printing on such buttons).
- 2nd group – buttons with numbers – these are located at the monitor panel. These buttons have digits and special signs printed thereon.
- Receipt issuing device.
Before you insert your card to ATM, consider the following.
- Make sure that the machine is operational (the machine is supplied with electricity, signal lamps are on and display is working);
- If your card is an international one, make sure the ATM you are about to use is accepting cards from VISA or Master Card systems;
- Make sure you insert your card correct way.
How to use ATM?
- Correctly insert your bank card to the verification device of the machine. Note: near the card verification device you can see the instructions on how you should insert the card into the device.
- Select menu language by using buttons situated to the right of the window (Azerbaijani, English or Russian).
- Use the digital buttons board to enter your PIN. While you type your PIN, it will appear on the screen in a star format, therefore, please make sure you concentrate on the buttons board. Once your PIN is entered, please push “Enter” button.
Note: When typing your PIN, please be careful. You have got just 3 chances to enter a proper PIN. If you 3 times in a row enter an incorrect PIN, the card will become blocked (it will be “swallowed” by the machine).
- Use buttons to the right of the monitor to select the category of the transaction or the type of the currency you wish to withdraw (AZM, US Dollar or EUR).
- Use the buttons situated to the right and left of the monitor and push the appropriate button to select the amount of the cash you desire to withdraw from options appearing on the monitor. Where you do not see on the monitor an amount you wish to withdraw, select “Other”. Thereafter, once you see a message asking you to type the amount you wish to withdraw, enter the desired amount and press “Enter”.
- You will be asked whether you want information on the balance of your account to be printed on a slip or to be simply displayed on the monitor. Make your selection and decide whether you want a printed slip or otherwise.
- You will see one of the following message on the monitor:
- If you see on the monitor «Your request has been accepted, please wait», it will mean that the machine is preparing the amount requested by you for dispensing.
- «Sorry, banknotes you requested are not currently available»
- «You do not have sufficient funds in your account»
Once you see on the monitor messages shown under heading (b) and (c), please take your card and perform another operation by making the necessary changes or postpone your operations related to ATM.
- Please collect your cash from the dispenser within 30 seconds, otherwise, the banknotes will be taken back by the machine
Note: By using 'Cancel' button on the board, you can, at any time, cancel your transaction.
Attention !!!
- Maximum amount you can withdraw from ATM in one operation is USD 250, USD 250 or AZM 1.000.000. If you wish to withdraw a larger amount, you will have to repeat the transaction.
- Please collect your card from the machine within 30 seconds of its return. Otherwise, the card will be “swallowed” by the machine.
- Unless you collect your cash and payment slip within 30 seconds from the time of dispensing or return fro the machine, your cash or card will be “swallowed” by ATM.
In which case ATM may refuse to dispense the amount you requested?
- If your card expired
- If your card is damaged
- If you do not have sufficient funds in your account
- If there is not sufficient cash in ATM
- If there is your requested cash in ATM (for example, if you wish to withdraw AZM 75.000, but ATM has got only AZM 5.000 notes)
- If you exceed the amount constituting the limit for ATM
- If ATM is temporarily unavailable
Note: if your operation with the bank teller machine is unsuccessful, but the fund were written off from your account, you must report the appropriate information to your Bank.
Safety rules for ATM use.
- If ATM is situated in a dark or lone place, do not risk and use some other machine.
- Make sure that no one standing in the queue is following how you enter your PIN or the amount.
- Remember! If you enter your PIN incorrect 3 times, your card will become blocked and sometimes may lead to the withholding of the card by the machine.
- Do not count your cash in front of ATM, take your card, cash and slip and leave ATM. If the amount you got is not correct, please contact your Bank.
- If you have any doubts, cancel the operation and leave ATM. Contact your Bank to make sure the operation was duly cancelled.
- If you are about to use ATM situated in a closed room and you must, for that, open the door with your card, make sure that no stranger enters the room along with you.
- If you are about to use ATM situated along the road, close the car’s door and windows. Do not leave your keys and other valuable in the car while you go to withdraw your cash, and turn off the engine.
- Take your printed slips with you.
If you face any problems or confusion while using ATM, please contact Customer Service Section in any branch of our Bank.
History of cards
The history of modern cards takes its roots from the beginning of the 20th century. Various cards issued by a number of US hotels, petrol companies and shops were pursing the 2 main purposes – to have control over an individual account of each customer and to arrange a system of registration of purchases by each customer. Some other companies, by issuing special cards to their rich customers and by thus offering certain benefits (discounts, payment in installments, free delivery, etc.), were trying to tie these people to their shops, and to form a sense of loyalty in their customers. Along with all that, it was the introduction of the card system which created grounds for the development of the system of payment for the goods during certain long period of time and in installments. Later, success of the card system caused some other areas as well, for example, card and air transportation industries, to introduce a card system.
In the beginning of 20s, some petrol stations operators started the issue of special advantageous cards - «courtesy cards». With such cards, air travelers were able to make purchases in any office of the company. Gradually, as a result of the competition, some large companies expended large amounts of money to replace customer cards with credit cards.
The foundation for introduction of modern credit cards was laid back in 1949 with the establishment of Diners Club. During spring of 1949, Alfred Bloomingdale, Franc McNamara and Ralph Snyder presented a plan for the new category of cards. Unlike shopping cards which one was able to use in the specific sector only, new cards were universal and availed their holders of the chance to make payments at any shopping and service facilities throughout the country. Another significant feature of the plan, was the role of intermediary (Diners Club) in the sale and purchase transaction between the buyer and the seller.
For the purpose of financing of the project, initially, Diners Club was taking from participant companies 7% fee in form of discount from the price of the goods, while card holders had to pay a monthly fee.
During the first stage, there were certain problems facing the project:
- Potential customers were awaiting the increase of the number of participant companies and were not in a hurry to get a card
- Companies, witnessing low level of demand, were not willing to join the program
- Companies were not satisfied with the level of discount
- Airlines, petrol companies and other large trading companies, who issued their cards before, were also opposing the idea. While being dissatisfied with the need to pay fees to a third party, they were worried, that by selling “outside” cards to the their clients, relations between them will deteriorate.
However, the activities of the Diners Club were expanding. It was followed by a company operating in Travel & Entertainment sector. 1958 saw the entrance to the market of American Express, engaged into the issue of travel checks, and of Carte Blanche, issuing universal credit cards.
In the same year, the largest US bank – Bank of America and Chase Manhattan Bank started carrying out transactions with credit cards. However, as a result of the competition, in 1962 Chase Manhattan had to sell its business. The main problems associated with the card business of that period were problems in information exchange, large number of forgery and improper use, and what was the most important aspect – the lack of a single national network, all of which were creating serious obstacles on the way of development of small banks concentrated on the local card market. In 1966 Bank of America made the first step towards the solution of this problem and issued a number of banks with the license to carry out operations with Bank Americard cards. In an answer, other banks established the second national card system - İnterbank Cards Association.
Fast development of the card system witnessed increase in the number of companies willing to joint these two national systems. As a result, banks, which were independently operating in this segment, also decided to join one of these systems. By 1978 more than 11 thousand local banks were a part to one or both systems.
In 1970’s, a number of laws was enacted in US for the regulation of use of cards and card business (Fair Credit Billing Act in 1972, Federal Privacy Act in 1973, Equal Credit Opportunity Act in 1977).
In 1976, to accelerate its worldwide recognition, BankAmericard changed its name to «VİSA». And 1979 saw the establishment of the successor of Master Charge - «Master Card». During 1969-1981 number of banks joining Master Card increased from 4.461 to 12.504, and number of banks joining VISA increased from 3.751 to 12.518. By the end of late 1980s, VISA was leading its main competitor already by 3 times.
It is interesting, that initially VISA and Master Card prohibited banks to issue both VISA and Master Card. However, later, following a number of court suits filed for the breach of anti-trust legislation, the bank were availed of such an opportunity.
Competition in T & E card industry was also increasing. Within this market, the positions of American Express were especially strong. Later, to be able to further compete, despite the acquisition of Diners Club and Carte Blanche by City Bank, AMEX is leading the other two combined systems by 12 times.
Development history for payment cards
- 1950 - Diners Club introduces the first payment card
- 1958 - Bank of America issues the first bank card
- 1965 - EUROCARD International is established in Belgium
- 1967 - US banks establish Interbank Card Association – İCA
- 1968 - EUROCARD International and İCA create an alliance
- 1974 - Establishment of Eurocheque International
- 1976 - Bank Americard is reorganized into VİSA International
- 1979 - İCA is reorganized into Master Card International
- 1988 - Master Card becomes the shareholder of EUROCARD International & EPSS
- 1992 - EUROCARD İnt . & EPSS and Eurocheque İnt . establish Europay International
- 2002 - Merger of Master Card Int. and Europay International
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