What is a card payment service?

Card payment services are systems that allow individuals and businesses to conduct transactions for goods and services using bank cards instead of 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 point-of-sale (POS) terminals, automated teller machines (ATMs), and online payment platforms.

Card payment services are cashless payment methods that utilize payment cards on bank POS terminals located at card-accepting businesses and individual entrepreneurs. Credit card holders only need to perform one simple "swipe" to quickly pay for all goods and services. Daily spending becomes easier and more convenient. Instead of carrying cash, you can now simply "swipe" your 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 now and repay it later within a specified period, usually 20-45 days, without interest. If repayment is not made on time, interest will be charged.

Debit Card: A debit card is directly linked to a user's bank account. Spending via debit card is deducted directly from the user's account balance.

Prepaid Card: A prepaid card that is not directly linked to a bank account. Users must load money onto the card before use. This type of card is often used for spending control or gifting.

Illustrative image of card payment services. (Source: VP Bank)

3. Card payment process

The card payment process typically follows these steps:

Step 1: Purchase: Users buy goods or services at a point-of-sale (POS) terminal or on an online payment platform.

Step 2: Enter card information: Users enter their card information, including card number, expiration date, and CVV/CVC code (security code) for online transactions.

Step 3: Transaction Verification: The payment system will verify 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 from their credit card.

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

Card payment services are a modern and convenient financial tool, offering many benefits to users in shopping and financial management. However, to maximize these benefits and avoid risks, users need to 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