Credit Card and Debit Card
The Credit Card products are in most instances linked
to one of the two major international card associations,
Visa and MasterCard, with American Express and Diners
Club also being represented. Fleet Card, Petrol and
Garage Card products bear domestic labels of the individual
banks and are not linked to central clearing agencies.
A Credit Card is essentially a payment instrument through
which purchases can be made utilising credit provided
by the issuing bank. A Debit Card provides the same
purchasing capability but purchases are made from funds
held by the customer at the bank.
A Credit Card purchase is mandated (approved) by the
customer through signature on the card slip, whereas
a debit card transaction is mandated through a PIN keyed
in by the customer. Garage and Petrol cards are hybrid
cards with special application for paying car expenses.
Debit Cards in South Africa are cleared (exchanged)
on a real time basis through Payment System Operators
and settled once a day in batch.
Credit Card payment transactions are approved through
the PCH System Operators on a real time basis but clearing
and settlement happens in the largest number of cases
in a batch mode directly between the participating banks.
The Card types described above are all facilitated
in one Payment Clearing House Participant Group know
as the Card PCH PG.
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