Study of Card Payments process in digital banking

Name: Study of Card Payments process in digital banking
Rating: 3.7 (51 reviews)

This course explains about PIN,CVV,BIN,PCI DSS, chargeback mechanism, interchange fee, EMV card, etc

Created byBhavishya Sri Perumal

Last updated 2/2025

English

What you'll learn

cards
Working mechanism of cards
Digital banking
Fintech

Course content

4 sections • 26 lectures • 1h 38m total length

Introduction0:22
Explore the basics of cards and the working mechanism of card payments within digital banking, building foundational knowledge for secure and efficient transactions.
BIN5:28
Explore how the 16-digit card number encodes the issuing bank via the major industry identifier and bank identification number, reveals card type, and uses a check digit.
BIN MCQ3:10
Explore the role of the bank identification number (BIN). Learn how BINs route transactions, identify issuing banks, and support fraud risk assessment and targeted offers by card type.
PIN6:07
Discover how a personal identification number provides an extra security layer for electronic transactions and debit card withdrawals, with a length of four to twelve digits.
CVV6:09
Explore how CVV and other card verification codes secure digital payments, detailing CVV, CVC, and card validation concepts across Visa, MasterCard, Discover, and Amex, with OTP authentication.
Types of CVV6:50
Explore the types of cvv in card payments, including cvv1 on magnetic stripe and cvv2 for online transactions, and examine dynamic cvv3 that changes per transaction using a cryptographic key.
CVV FAQ3:27
Explore the cvv basics, including what cvv means, where to find it, why it secures online transactions, and how it differs from pin and other card verification codes.
Luhn Algorithm4:52
Explore the Luhn algorithm and how it validates credit card numbers with a check digit to speed up electronic payments.
Luhn Algorithm MCQ2:36
Explore the Luhn algorithm through mcqs that validate credit card numbers, explain doubling every second digit from the right, and verify the total modulo ten.
Magstripe card3:01
The magnetic stripe on plastic cards stores data magnetically and is swiped to identify and approve transactions, but it remains vulnerable to skimming and is being replaced by EMV microchips.
EMV card2:07
Explore EMV chip technology as a global, interoperable standard for secure card payments. See how EMV reduces fraud and counterfeit cards in card present transactions and supports not present transactions.
Card present and card not present transaction4:28
Learn about card present transactions where the customer physically interacts with a card reader. Compare with card not present transactions, where card data is entered online or via apps.
card network2:28
Explore card networks, or associations, regulating payment card transactions, with examples like Visa, MasterCard, American Express, Discover, and China UnionPay. Understand how issuing and acquiring banks and networks process transactions.

Application of credit card3:52
Explore the credit card application process in digital banking, including where to apply, required documents (identity, address, income proofs), and how banks verify authenticity and handle rejection.
Embossed vs unembossed card6:06
Explore embossed cards with raised front data for legacy imprinting and compare them to unembossed laser-printed cards used with magnetic stripes and EMV chips.
Issuing bank,Acquiring bank,Merchant3:45
Identify the key players in a card payment: cardholder, merchant, acquiring bank (merchant bank), issuing bank, and card schemes. Networks handle authorization and settlement, while disputes are arbitrated.
Authorization1:17
Trace the card payment authorization flow: from the cardholder to the acquiring bank, then via card schemes to the issuing bank for approval, with the authorization returning to the merchant.
Transaction submission4:41
Explain how credit card payments submit to the acquiring bank, how merchant and acquirer reconcile, and how settlement and card schemes follow after successful reconciliation.
Clearing3:00
Explore clearing and the flow of transaction data between issuing and acquiring banks, with authorization engines. Understand the transaction states—clean, bad, and great—and how clean transactions appear on monthly statements.
Settlement1:14
Settlement manages the exchange of funds between the card issuer and the acquiring bank. The issuer incurs risk from unsecured credit, covered by interchange fees shown on the statement.
Settlement-20:45
Follow the settlement process in digital banking: send approved authorisations to the acquiring bank, clear with the card network, reconcile with the issuer, and transfer funds to the acquirer.
Summary2:19
Explore how a card payment flows from cardholder to merchant acquirer, through the card network and issuer, to authorize, clear, settle, and bill the cardholder, and generate a monthly statement.

PCI DSS3:58
Ensure card payment security and trust by complying with the globally recognized PCI DSS framework, established to protect cardholder data across merchants and service providers.
PCI DSS-25:05
Explore PCI DSS 12 requirements for protecting cardholder data in digital banking, including firewall configuration, encryption, access controls, malware protection, secure systems, and policy documentation.

MDR,Switching fees3:20
Explore how digital card payments involve paying customers, merchant banks, issuing banks, card networks (Visa, MasterCard, Amex, RuPay), and PSPs, with merchant discount rate, switching fees, and interchange fees.
Chargeback Mechanism8:11
Chargeback transfers funds from the merchant to the customer via the issuing bank when a dispute arises, commonly in ecommerce, for both card present and card not present transactions.

Requirements

Description

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 bank account.

Physically, a bank card will usually have the client's name, the issuer's name, and a unique card number printed on it.

It will have a magnetic strip on the back enabling various machines to read and access information. Depending on the issuing bank and the preferences of the client, this may allow the card to be used as an ATM card, enabling transactions at automatic teller machines; as debit card, linked to the client's bank account and able to be used for making purchases at the point of sale.

Cards can be classified on the basis of their issuance, usage and payment by the card holder. There are four types of cards (a) debit, (b) credit, (c) prepaid, and (d) electronic.

Debit cards are issued by banks and are linked to a bank account. Credit cards are generally issued by banks and a couple of non-banks, but can also be issued by other approved entities. Prepaid cards are issued by banks / non-banks against the value paid in advance by the cardholder and stored in such cards which can be issued in the form of cards or wallets

A card can be swiped (Magnetic-Stripe card), dipped (Chip based card) or tapped (Contactless Near Field Communication {NFC} Card) at a PoS terminal.

This course discusses about the working mechanism of cards. Read all the attached documents for better understanding

Please go through the course thoroughly before purchasing.

Who this course is for:

students and professionals

Study of Card Payments process in digital banking

What you'll learn

Explore related topics

Course content

Basics of cards13 lectures • 51min

Working Mechanism of cards9 lectures • 27min

PCI DSS2 lectures • 9min

Charges associated with cards2 lectures • 12min

Requirements

Description

Who this course is for: