Investor's wiki

Bank Card

Bank Card

What is a bank card?

A bank card is a payment card issued by a bank. Bank cards let customers access funds in checking or savings accounts or make purchases against a line of credit. ATM cards, debit cards, and credit cards are completely considered sorts of bank card.

More profound definition

Rectangular bank cards with unique serial numbers were first issued by Flatbush National Bank in Brooklyn in 1946, trailed by New York's Franklin National Bank in 1951. These early bank cards were limited to purchases at a short rundown of neighborhood retailers. The Diner's Club card was made in 1950 for a select group of top of the line caf\u00e9s, moving American Express to send off a comparable payment card for business travel expenses.
These early payment cards were made of cardboard, yet by the mid 1960s bank and charge cards were made of plastic, with raised serial numbers that worked with the utilization of carbon copy forms for enrolling payments. During the 1970s, magnetic strip technology was added to bank cards, and today essentially all bank cards are smart cards that incorporate microchips and data storage to verify users and transactions.
Bank cards for the most part carry the logo of the company that processes the payment, like Visa or Mastercard. ATM cards that are not debit cards or credits cards don't carry the such a logo, since customers can't involve them for purchases. Furthermore, banks may some of the time partner with different organizations to release co-branded and affinity cards, which bear a logo or a connected picture of the partner brand.

Bank card model

There are four categories of bank card:

  • ATM cards: These cards permit the customer to pull out, deposit, or transfer money from any automatic teller machines. Moreover, ATM cards let a customer get a cash advance, check her account balance, and make a loan payment.
  • Debit cards: Also called check cards, debit cards combine the usefulness of an ATM card and a check, debit cards let the account holder make purchases at retailers and furthermore function as ATM cards. At the point when utilized as a check, the funds automatically come out of the particular account.
  • Pre-loaded debit card: A pre-loaded debit card conveys a set amount of money and just permits the card holder to spend the balance on the card. When the money runs out, the customer must top off the card.
  • Credit cards: A form of revolving loan, credit cards let the customer make purchases against a credit extension. Assuming that the balance is taken care of before the month's end, no interest is charged on the loan. Balances held longer than one month bring about interest charges.


  • Most bank cards these days likewise have EMV chips for security purposes, notwithstanding the standard magnetic stripe.
  • Like different sorts of cards, bank cards can be utilized for web based business purchases and different sorts of spending, with the amount deducted straightforwardly from the account at the hour of transaction.
  • A bank card is a card that is linked to a depository account, including ATM cards and debit cards.