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PROS AND CONS OF USED BANK CARDS BY POPULATION
X.S. Tillayev, lecturer Tashkent financial institute (Uzbekistan, Tashkent)
Abstract. Bank cards: Credit card and Debit card are two essential things in our daily life. Both cards help us in different ways. Credit cards are useful for people who able to settle down the appropriate money monthly and manage the card properly. Debit cards are good for people who able to manage their life with the budget. If we compare these two cards, I recommend you to get the debit card because credit card put you in trouble in some way and debit card not do so.
Keywords: bank, plastic card, transactions, payments, electronic terminals, debit card, credit card.
A bank card is typically a plastic card issued by a bank to its clients that performs one or more of a number of services that relate to giving the client access to funds, either from the client's own bank account, or through a credit account. It can also be a smart card [1].
Plastic card is the personified payment tool provides the owner the possibility of cashless payment for goods and services, to withdraw cash at offices (branches) of banks [2].
Plastic cards can make payments for goods and services in supermarkets, shops, service industries, cellular companies, air and railway ticket offices, petrol stations, pay a monthly fee for telephone, long distance and international telephone calls and make payments for utilities. You can pay at any retail outlet equipped with electronic terminals for acceptance of payments by plastic cards.
For maintenance of plastic card installed terminals across the country, which are available in retail outlets, post offices, gas stations, mini-branches of banks and savings cash-boxes, as well as at points of reception of payments for services, including cellular.
In 1995, for the first time in Uzbekistan
were introduced into circulation credit and debit payment plastic cards in national currency. Within the framework of the Republic of Uzbekistan Cabinet of Ministers Resolution № 445 "On measures for further development of settlement systems based on plastic cards", adopted on 24 September 2004, the Unified Nationwide Processing Center (EOPTS) was created, which allows to carry out in a single mode of banking transactions in all outlets regardless of which bank is served by the organization of trade or the service sector or the owner of a plastic card. Currently EOPTS comprises 25 commercial banks, will issue the soum plastic cards. The Center established interbank payment clearing system for Soum plastic cards Uzkart.
Uzbekistan is now quite widely developed system of non-cash payments based on plastic cards. It has an extensive network of information and reference terminals of mass selfservice, allowing the clock to provide services cardholders, organized after-sales service for repair of terminals, ATMs and kiosks in all regions.
Figure 1. The number of bank cards issued into circulation in Uzbekistan (January 1) [3]
Taken together, debit cards (including prepaid and non-prepaid cards), credit cards, ACH credit transfers, ACH debit transfers, and checks compose a core set of noncash payment types commonly used today by consumers and businesses in the United States. These core noncash payment types are used both in traditional ways, such as in-person purchases, payroll deposits, and bill payments, and in relatively new ways, such as mobile payments, e-commerce payments, and online bill payments.
The data for 2015 as well as previous survey years show an inverse relationship be-
tween the number and value of payments across the payment types (figure 2). Debit cards held the largest share of payments by number but the smallest share by value. Credit cards were the second largest by number and the second smallest by value. At the other end of the distributions, ACH credit transfers held the smallest share by number but the largest share by value. ACH debit transfers were the second smallest by number but the second largest by value. Finally, checks now lie in the middle of both the number and value distributions.
Number (In billions) Dollar value {in trillions)
Figure 2. Distribution of core noncash payments by type, number, and value in USA [4]
Really needful in the Emergency situation - Credit card always the best solution for your emergency situations. Let's say, sudden-
ly you admitted in a hospital and you have to pay a big amount in order to start treatments. But you don't have enough money in your
wallet or debit card. Such these situations credit cards will help you much. Whenever you worry about the shortage of money, a credit card is the best solution on that occasion.
Transfer credits - This is a good advantage for all people, especially for small business people. Because small business people put all money into their business and end of the day they struggle to pay for the credit card. In these situations, if you get a new credit card, that will help you in a different way. If your new credit card offers one-year transfer free facility then you can transfer all that card money to your old credit card and pay little by little to the new credit card every month.
Convenient to use in a wide range - You can use your credit cards anywhere and everywhere. So you don't need to think about cash or checkbook as long as the credit card in your wallet. So simply you can save your time and trouble.
Build your credit line - Maintaining a good credit score is always essential not only for applying for credit cards but also for applying for loans, some jobs and for buying things on a contract basis. A Credit card is the best thing which helps you to increase your credit score as long as you pay your bills and make an appropriate payment to the credit card in each month.
Blowing your budget - The biggest disadvantage is, the credit card suppliers encourage you to spend money. When some people get a credit card, they think like got a jackpot. They never think about the future. So they spent from their credit card without any limitation. Some credit card suppliers give 1-year interest-free facility, so spending does not affect much in the beginning but definitely your future will be in big trouble.
High-interest rate - Credit card companies charge a high amount of interest on each balance that you don't pay off at the end of each month. This is how credit card companies earning money at the same time this is how most if the people around the world get into debt.
Chances to diminish your credit score - a Credit card is a good way to increase your credit score as long as you pay their monthly
outstanding. If you do not pay the appropriate amount monthly then there are more chances to affect your credit score. So be aware and keep your credit score in a good position.
No headache since the money is yours -One of the biggest advantages of having a debit card is you don't need to push yourself under pressure since the money is yours. Credit cards encourage you to spend money, but debit cards encourage you to earn money.
Easy to get - Unlike credit cards, debit cards are easy to get from the bank. Just do some paper works and you will get your debit card in 1 or 2 weeks once you are eligible to use.
Protection - having a debit card is protect you in some way. There is some everyday ATM withdrawn limit which is good for you. if someone steals your card, they won't withdraw all amount from you card in a day. Next day bank will deactivate your card as soon as you inform them. Also, most of the countries not allow you to use your debit card abroad unless you inform them before flying to abroad.
Not help in an emergency situation - As I mentioned earlier, in emergency situations credit card give you a hand while debit card does not do so unless you maintain a good balance on your debit card. If you don't have money in emergency situations it will push you to distress.
No benefits like a credit card - Debit card means whatever you earn can spendable and no more. You won't get any benefits from your debit cards. But some banks like Natwest bank in the UK provides debit cards, named Platinum or Silver or Gold. If you get one of these cards, you will get some benefits but you need to pay some extra money monthly to the bank.
If you want to enjoy the benefits of credit cards while avoiding their pitfalls, it helps to keep a few simple tips in mind. First, always pay off your balance in full to avoid interest payments. Second, avoid fees whenever possible. Keep a close eye on your account to avoid being late with your payments or going over your credit limit, and steer clear of cash advances and balance transfers.
References
1. https://en.wWkipedia.org
2. https://xb. uz/eng/info/plastic-cards
3. Central Bank of Uzbekistan. http://cbu.uz
4. The Federal Reserve Payments Study 2016. https://www.federalreserve.gov
БАНКОВСКИЕ КАРТЫ: ПРЕИМУЩЕСТВА И НЕДОСТАТКИ
Х.С. Тиллаев, преподаватель Ташкентский финансовый институт (Узбекистан, г. Ташкент)
Аннотация. Банковские карты: кредитная карта и дебетовая карта - две существенные вещи в нашей повседневной жизни. Обе карты помогают нам по-разному. Кредитные карты полезны для людей, которые могут ежемесячно размещать соответствующие деньги и правильно управлять карточкой. Дебетовые карты хороши для людей, которые умеют управлять своей жизнью с помощью бюджета. Если мы сравним эти две карты, я рекомендую вам получить дебетовую карту, потому что кредитная карта в определенной степени помешает вам, и дебетовая карта не делает этого.
Ключевые слова: банк, пластиковая карточка, транзакции, платежи, электронные терминалы, дебетовая карта, кредитная карта.
