Things to Know About e-Payment Cards
What is an e-payment card?
What type of e-payment cards are available?
Can the same bank account have more than one e-payment card associated with it?
Can store cards be considered to be e-payment cards?
Where can I obtain Visa cards in Nigeria?
Where and how can I use my Visa cards in Nigeria?
Who is a merchant?
What does it take for a merchant to accept Visa card payments?
What type of e-payment cards are available?
Can the same bank account have more than one e-payment card associated with it?
Can store cards be considered to be e-payment cards?
Where can I obtain Visa cards in Nigeria?
Where and how can I use my Visa cards in Nigeria?
Who is a merchant?
What does it take for a merchant to accept Visa card payments?
- What is an e-payment card?
- An e-payment card is a payment instrument, usually in the form of a plastic card, provided by the “issuer” (issuing institution) to the cardholder so that he/she by accessing a telecommunications network and based on the account associated with the card, may purchase goods or services, make payments, withdraw cash and/or conduct other transactions.
- The e-payment card allows the holder to validate the transaction that he/she wishes to carry out.
- What type of e-payment cards are available?
- Debit card : This card is associated with a current/savings account. When the cardholder uses it for payments, cash withdrawals at ATMs or transfers, the corresponding amount is debited from the holder’s current/savings account. This means that there is an equivalent reduction in the demand deposit account balance. This type of card is best described by its debit function.
A debit card allows its holder to buy now and pay now. It is therefore more convenient and safer to carry than cash or cheques. - Credit card : This card is associated with a “card account” and a credit line.. When the cardholder uses this card to make payments or obtain cash advances, he/she benefits from a credit line extended by the issuer (which may or may not be a bank). Therefore this type of card is best described by its credit functions.
A credit card allows its holder to buy now and pay later. - Prepaid card : This card is equipped with a Chip that allows the cardholder to load money unto it. Usually it is limited to a pre-set maximum amount. When it is used, there is a corresponding reduction in the available amount. This type of card is best described by its prepaid functions. A typical example is ValuCard e-purse.
A pre-paid card allows its holder to pay now and buy later. - In terms of capabilities, an e-payment card can be a single or a multi-function card.
a) Single function card: This card performs exclusively a single type of function, which according to the classifications above can be debit, credit or prepaid.
b) Dual or multi-function card: This card type combines more than one type of function and this may be associated with more than one account. For instance, this type of card can combine in the same piece of plastic a credit as well as a health insurance card, or a payment card tied to a loyalty programme. - By their physical attributes, e-payment cards can be Magnetic Stripe or CHIP Card.
Magnetic stripe card : This type of card, often times called Magstripe Card, stores the cardholder’s data on a black band of magnetic material on the back of the card. The magnetic stripe is read by physical contact by swiping the card through a reading device popularly referred to as zip-zap machine.
Chip card : A Chip card is a plastic card whose cardholder data is stored in a miniature integrated circuit material embedded on the front face of the card. It has various tamper-resistant properties, which makes it more secure than the Magstripe card. It is popularly referred to as “smart card”.
- Chip cards can store encrypted confidential information such as account data, which is almost impossible to copy. Alongside its function of being used as a credit or debit card, it can also be used as an Access Control, Health, and/or a Social Insurance card, amongst other functionalities.
- An example of Chip card is V-Pay, a Visa debit card now being issued in Europe and Nigeria.
- Debit card : This card is associated with a current/savings account. When the cardholder uses it for payments, cash withdrawals at ATMs or transfers, the corresponding amount is debited from the holder’s current/savings account. This means that there is an equivalent reduction in the demand deposit account balance. This type of card is best described by its debit function.
- Can the same bank account have more than one e-payment card associated with it?
- Yes. It depends on the membership agreement established between the cardholder and the issuer. For instance, a family head may request his bank to issue Visa cards to one or more members of his family, linked to his card account. Also, a company can request several corporate or travel cards for its officers’ use, all linked to the company’s account.
- Yes. It depends on the membership agreement established between the cardholder and the issuer. For instance, a family head may request his bank to issue Visa cards to one or more members of his family, linked to his card account. Also, a company can request several corporate or travel cards for its officers’ use, all linked to the company’s account.
- Can store cards be considered to be e-payment cards?
- No. Cards issued exclusively (e.g. supermarket chains and oil companies) are not e-payment cards. These are store cards or retailer cards, which allow payments only at the stores issuing them. They cannot be used at ATMs or other merchants’ Point of Sale terminals. Their use may translate into discounts and/or credit for the cardholder.
- How do I identify an e-payment card
- They are usually branded, the most popular in the world being Visa cards.
- No. Cards issued exclusively (e.g. supermarket chains and oil companies) are not e-payment cards. These are store cards or retailer cards, which allow payments only at the stores issuing them. They cannot be used at ATMs or other merchants’ Point of Sale terminals. Their use may translate into discounts and/or credit for the cardholder.
- Where can I obtain Visa cards in Nigeria?
- V-Pay , the only Chip and PIN-protected domestic debit card in Nigeria and the latest in the Visa card family, may be obtained from any Visa member bank in Nigeria.
- Other classes of Visa cards would be available in due course.
- Where and how can I use my Visa cards in Nigeria?
- You can use your V-Pay or any other Visa card at merchant outlets where you see the Visa acceptance sign. You can also use it at ATMs where the Visa acceptance sign is displayed, to either withdraw cash or make certain kinds of payments such as paying for your electricity bill or water rate.
- For V-Pay, it is also possible to use it to make payments over the Internet to merchants within Nigeria, while for other Visa cards, you can use them to make Internet payments to merchants abroad.
- Other ways you can use your V-Pay or other Visa cards include using it to recharge the airtime on your phones or to transfer funds from your account to someone else’s account, or from your card to another person’s card.
- Who is a merchant?
- A merchant is any business outfit that accepts Visa card for payment.
- A merchant is any business outfit that accepts Visa card for payment.
- What does it take for a merchant to accept Visa card payments?
- Simple! The prospective merchant simply signs up with ValuCard Nigeria Plc, so that ValuCard can deploy the Point of Sale device to his/her outlet.
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ValuCard Nigeria Plc.
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ValuCard Nigeria Plc.
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