Bank cards are plastic cards issued by financial institutions that allow cardholders to access their bank accounts, make purchases, and withdraw . They come in various forms, including debit cards which are directly linked to the cardholder's bank , allowing for immediate access to available funds. Credit cards enable users to borrow money up to a certain to make purchases, with repayment typically required monthly, often with interest. Prepaid cards are loaded with a specific amount of money in advance and until the balance is depleted.
A key feature of bank cards is their security, often equipped with chips for enhanced security against fraud. They are widely accepted at millions of merchants globally for in-store and online purchases. Many credit cards offer cashback, points, or other for transactions. Conversely, magnetic swipe cards, which feature a magnetic stripe on the back, are commonly used for various financial transactions. The magnetic stripe contains encoded information about the and the card itself, though due to the ease of skimming, most modern bank cards now utilize chip and pin technology.
When a magnetic swipe card is swiped through a reader, the device reads the encoded data on the . The information is transmitted to the payment processor, which verifies the details and authorizes the . However, magnetic swipe cards have disadvantages, including security vulnerabilities as they are more susceptible to fraud, such as card skimming and . This form of electronic fraud captures and clones the information stored on the magnetic stripe, allowing criminals to exploit the data for unauthorized purchases.
In contrast, chip and PIN technology enhances security by requiring the cardholder to enter a Personal Identification Number (PIN) to complete a . This method generates unique transaction codes for each purchase, making it extremely difficult for fraudsters to . It is widely accepted and recognized, particularly in Europe and parts of Asia, providing consumers with greater peace of mind when making purchases.
