Essay on Usage Of Plastic Cars Like Debit And Prepaid Cards
The card originated providing customers to access to their accounts through automatic teller machine (ATM). This is a way for bank to automatically update themselves while reducing the cost, as well as it will benefit the customer.
Initially the card actually carried out account balance information 's and balances. The card holder would get the card into a branch and bank official would “load” money in the card, based on the balances of customers actual account. The customer could then use the card at an ATM which would update the info on the card as money was withdrawn. This method had many problems. It was too susceptible to fraud, it could not handle multiple accounts.
The online automatic teller machine offered a solutions to the problem of the early automatic teller machine cards. Since the ATM was connected to the bank, it was not required to maintain account balances on the card itself, which removed a major source of fraudulent activity. Also, access to different accounts became possible, as an additional services by the bank.
Once banks started purchasing and installing online automatic teller machine, they quickly analyzed that it is very expensive to maintain a huge number of ATMs. Yet customers started…