Smart Card

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A smart card is the next step in the evolution of plastic payment cards. Each smart card has an integrated circuit chip embedded into it, which gives it the power to perform many different functions. Thus, having a smart card is like having a PC in your wallet. With their ability to store up to 80 times more information than magnetic stripe cards, smart cards will allow Card Companies to deliver more personalized products and services providing consumers with custom-tailored cards to suit their individual lifestyle.

With a smart card, consumers will have the capability to carry multiple currencies when travelling; make secure purchases over the Internet anytime, anywhere; pay for public transportation and public phone calls; as well as make traditional credit and debit purchases – all with significantly fewer cards.



Eg : Petrocard introduced by Bharat Petroleum. One billion smart cards in use all over the world.

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Cash is always riskier to carry, besides the limit to the amount you can carry in your wallet. That's where credit cards come handy. Not only can you spend upto your given credit limit without having to worry about carrying cash, nowadays you can also issue cheques against your card limit and order drafts over the phone.

A credit card, as the name suggests, gives you credit - obviously for a charge. The days of credit one gets could range from 20 - 50 days depending on the date when one made the purchase. You can choose to pay your entire dues at one go, or stagger them after paying the minimum amount due every month. Besides this, it entitles the member to plethora of benefits like travel discounts, discount on retail loans.

A charge card is pretty similar to a credit card with one major difference. With a charge card you have to pay the entire dues within the credit period and cannot carry over any balances like a credit card.

A Debit card is basically like an ATM card on the move (or like your bank account on the move). It enables you to access your bank account for payment. When you make any purchases using a debit card, then your bank account is instantaneously debited to the extent of the purchase amount.



Visa, Master Card and Amex are the main three types of cards in India.

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How to avail a Credit Card

Get in touch with an issuing bank like Standard Chartered, Citibank, or Bank of Baroda and ask for an application form. Submit the application form along with documents that basically verify your income, age and place of stay. If the bank is satisfied with your credit worthiness, the bank will send you your card by mail. You need a salary of at least Rs. 70,000 per annum for an ordinary card and Rs. 1,80,000 per annum for a gold card.

The basic cost involved in applying for a card comprises the joining fee and the annual fee. Typical joining fees (a one time payment) vary between Rs 100 and Rs 1,000. The annual fee is levied each year to continue membership on the card.

&& The insurance cover can very between Rs 50,000 to Rs 500,000 depending on the issuing bank and the type of credit card owned.

&& A bank can issue a single credit card which you can use throughout the world - the global card. Credit limit will be based on the basic travel quota (BTQ) entitlement/ RBI norms. One can obtain notes upto US$ 500 or its equivalent when going abroad.

&& PIN or the Personal Identification Number is unique to every card and is a combination of numbers. It is normally a 16 digit number. If you lose the PIN get in touch with the bank as soon as possible. The bank will replace your credit card and issue a new PIN against a prescribed fee.

&& Inform the bank immediately in the event of losing your credit card. The bank then immediately freezes your card to prevent any fraud.