taxes accounting test

what percentage of US consumers rely on debit and credit

41%

what are the similarities between debit and credit cards

magnetic strips, expiration dates, and EMV chips

what is the difference between debit and credit cards

with a credit card, the cardholder is borrowing money from the bank, but with a debit card the cardholder is spending their own money

how long is the special digit number that reveals essential information about the card

16 numbers long 

what are digits 2-6?

the IIN (issuer identification numbers)

what do digits 7-15 refer to?

the account number of the cardholder

what does the 16th digit refer to?

the checksum digit which represents the validity of the card

what does a CVV represent

an algorithm only known to the bank as an extra security measure

what do most businesses use to manage their balance sheets

a double entry account

what occurs during a bank debit

money is taken out of the customer’s account and reduces the account balance

what occurs during a bank credit?

a payment is overpaid or an item purchased is refunded; increases the funds of an account balance 

debit cards spend what type of funds?

funds that are already in the account

uses of a debit card include:

withdrawing cash from an ATM, making online purchases, and point of sale transaction

what is a credit card a form of?

short term financing bc they are unsecured loans 

what are the 4 major credit cards?

Visa, Mastercard, Discover, and American Express

what is responsible for managing card transactions from the time a purchase or bill is made to make sure that money goes to the appropriate accounts?

card processing networks

what are the 4 types of debit cards?

standard debit cards, ATM cards, prepaid debit cards, and EBT cards

what are the two types of retail credit cards?

closed loop card and open loop card

what is shift differential?

extra pay received by employees for working an odd shift