What is card payment service?

Card payment service is a system that allows individuals and businesses to make transactions to buy and sell goods and services using bank cards, instead of using cash. The most common types of cards include credit cards, debit cards and prepaid cards. This service is provided by banks and financial institutions, through a network of card acceptance points (POS), automatic teller machines (ATMs) and online payment platforms.

Card payment service is a non-cash payment method that uses payment cards on POS of banks located at card accepting units such as businesses and business households. Credit card holders only need to perform 1 "swipe" of the card and all bills for goods and services are paid quickly. Daily spending needs become easier and more convenient. Instead of having to carry cash, now you just need to "swipe" the card to complete all your transactions.

Types of payment cards

Credit Card: A credit card allows users to borrow money from a bank to spend first and pay it back later within a certain period of time, usually 20-45 days without interest. If the payment is not made on time, the user will have to pay interest.

Debit Card: Debit cards are linked directly to the user's bank account. The amount spent using the debit card is deducted directly from the user's account balance.

Prepaid Card: Prepaid cards are not directly linked to a bank account. Users must load money onto the card before using it. These cards are often used to control spending or give gifts.

Illustration of card payment service. (Source: VP Bank)

3. Card payment process

The card payment process usually takes place in the following steps:

Step 1: Purchase: The user purchases goods or services at a card acceptance point (POS) or on an online payment platform.

Step 2: Enter card information: The user enters card information, including card number, expiration date and CVV/CVC code (security code) for online transactions.

Step 3: Transaction authentication: The payment system will authenticate the card information and check the account balance or credit limit.

Step 4: Payment Processing: After verification, the transaction amount will be deducted from the user's account or debited to the credit card.

Step 5: Transaction Completed: The user receives the goods or services, and the transaction is recorded as complete.

Card payment service is a modern and convenient financial tool, bringing many benefits to users in shopping and financial management. However, to make the most of these benefits and avoid risks, users need to clearly understand how the service works, as well as the necessary security measures.

Cong Hieu

Source: https://vtcnews.vn/dich-vu-thanh-toan-the-la-gi-ar910930.html