The rise of insecurity and the migration from analog to the digital world in many countries led to the introduction of the cashless transaction. What is this cashless transaction? How is this transaction carried out? What is the importance of these cashless transactions? Well, let’s find out.
Digital migration has pushed the government to impose different measures to curb the use of cash in the economy of any country. The objective of the government is to promote digital devices for payment including prepaid cards and instruments. The reduction of using the money to transact and use digital ventures to transact is what is known as Cashless transaction. Notably, inflation or rather a shortage of cash in a country does not define Cashless transaction; the cashless transaction is the digital way to transact.
In able to achieve money moving electronically rather digital purchase, Visa Card came into the picture. Visa Card since its introduction has enhanced the spread of cashless transaction. Visa Inc is the company behind the branding of prepaid, credit and debits card. Any individual or business entrepreneur is entitled to a Visa Card. The creditworthiness of every consumer defines the different terms of each Visa Card.
Consumers with excellent credit are lucky compared to the ones with poor credit since Visa Card offer such users with rewards in cash form and reduce their interest rates, while the people with poor credit must load their cards before they start to use.
Various organizations, institutions have embraced the modern way of the transaction by offering consumers Visa Cards. Despite systems’ terms and conditions, Visa can be used at any commercial that accepts Visa Cards. Over 200 countries’ business entrepreneurs accept Visa Cards. Visa Inc made purchasing of valuables convenient and safer for the consumers thus boosting sales for the merchant. Visa Inc takes into account a small percentage of the whole sum of money from every transaction made by Visa Card.
ATM cards and Debit Cards offered by the banks are also used to refer to MasterCard or Visa Card. Some countries introduced Exit Visa. Exit visa in those countries is issued to tourist with a commercial visa when leaving the country. The Exit Visa is to ensure that the visitors have cleared all taxes on income earned while in that country. Notably, expired or overstaying visa attracts fines, jail term or deportation.
Visa USA operates a network for data processing by system namely BASE I and BASE II. The base I network is in charge of authorizing transactions, whereas the Base II is responsible for clearing and settling the transactions. In 1976, IT staff working with Bank of America created Base I alongside with Base II. The word BASE came from Bank of America System Engineering. It is also important to note that BankAmericaCard is the term used to refer to now VISA card.
Universal default ensures that card issuers lend money to individuals who are capable of paying back, and the interest rates are charged based on the risk posed by the customer. Late payment of Credit Cards attracts interest and card issuer reports the consumer to the credit bureaus. Every Visa Card has a penalty rate that is known as default APR. Default APR describes in details the interest rates that will be attracted if consumers delay the payment. Institution offering Visa Cards check credit report of their customers’ to foresee the possibility of risk lending money to the client. Bad credit reputation attracts elevated interest rate, degradation of the credit line of the clients or even when worse gets to the worst closure of the account of the client.
Visa Cards offer general purchase, but there are cards such as gift card or the single cards that limit the user. The single cards offer to buy in particular stores as indicated on the card. The close loops provided by different companies are limited to control payments that are processed by them. Besides, open loops are issued by institutions, but Visa processes the payment.
Every Visa Card has a visible 14 to 16 numbers on the card. These digits are known as primarily numbers that can be simplified to an account number. The very first number identifies the type of the card that is known as the major industry identifier. Four (4) is the major industry identifier for a Visa card. The association network of the credit card is identified by the six digits in the front while the last digit represents the check number that helps to curb fraudsters from creating credit card numbers. In the middle of the first six digits and the last digits, you will find the customer’s account.
For a transaction to be, authorized systems communicate with each other. The first step is to swipe the credit card or the merchant entering the details manually. The details are sent to the acquiring bank or rather the dealer’s bank, and then to the issuing bank. Visa will receive the information from the issuing bank and reply to the same network. The issuing bank will report back if the transaction is authorized or denied to the merchant’s bank. The number of the card, the date when the card is expiring, the billing address of the card consumer, security code, and book balance are key requirements for authorization of the transaction. Some of the issues that may lead a transaction denied are as follows;
Wrong information by the cardholder either intentionally or unknowingly when filling the details
A counterfeit card
Record showing stole or lost card
Over –exceeding the limit offered by the issuer.
In conclusion, there are several advantages of using Visa Card in today’s economy. Besides convenience, Visa Cards offers more scope for keeping records in transactions. The record keeping helps to account money and get rid of black money or unaccounted money. Also, payment done in a digital platform by Visa Card lessen the use and making of counterfeit money. Get Your Visa Card Today!!!