The bank payment card is a type of an electronic payment instrument and it is a plastic card on which information is encrypted in an electronic way. The bank card is issued attached to a bank payment account and it is used for a remote access to the funds on this account and/or to a preliminary determined credit limit agreed between the holder of the bank account and the bank-issuer of the card. The bank card gives possibility for withdrawing cash through terminal devices ATM (cash teller machines) and POS /POS in a bank/, payments of services and commodities through ATM and POS /POS at merchants/, transfers between accounts through ATM as well as other references, payment and non-payment operations performed on the basis of agreement with the bank and in accordance with the offered by the bank services related to the bank account.
Operations with a bank card can be performed only in person by the card holder.
The Law on Funds Transfers, Electronic Payment Instruments and Payment Systems and Ordinance №16 on Electronic Payment Instruments give definitions of bank debit and credit cards. According to these definitions the debit card allows its holder an access to the funds in amounts equal to the availability in his/her bank account which may also presume an overdraft agreed between the client and the bank-issuer. The credit card allows its holder to have an access to funds within a preliminary agreed loan between the client and bank-issuer.
Bank cards can be local and international. Local bank cards can be used on the territory of the country where they are issued. International bank cards should have the brand of the respective international card organization and they can be used at terminal devices possessing that brand all over the world.
Bank cards can be issued only by banks or branches of foreign banks in the country that have been given a license by the BNB. In order to issue international bank cards the bank should have a license by the respective card organization.
PIN is an abbreviation from Personal Identification Number. It is a four digit number serving as a password for access to the card and identification of the client. PIN code can be changed by the card holder and it should be kept in secret in order to prevent its misuse. At first the PIN code is generated automatically when the card is issued and it is given to the card holder in a sealed envelope and the card holder should take the necessary measures the PIN code not to be revealed by other persons. The automatically created as well as the subsequently changed PIN code should be known only by the card holder.
Transactions with bank cards are performed through terminal devices ATM and POS, installed on the territory of Bulgaria or in abroad. Terminal devices ATM and POS serve for a remote access through a bank card to the funds on the account to which the card is issued. The performance of payment operations through ATM and POS is confirmed by introducing the respective PIN code of the bank card. Payments with bank cards can be made at ATM and POS devices.
ATM (cash teller machine) is a device for withdrawing cash, payments of services, transfer of funds between accounts, performance of references and payment and non-payment operations. The daily limit of ATM is the maximum amount up to which the card holder may withdraw cash from 0.00 a.m. to 12.00 p.m. or up to 24 hours from the respective transaction performed through the ATM.
The POS device serves for non-cash payments of commodities and services at merchants as well as for withdrawing cash if the device is in a bank. The seven day limit on POS is the maximum amount up to which the card holder can make withdrawals or payments through POS for a period of time of seven days.
Payments of commodities and services via Internet can be performed through virtual POS, through ATM or digital telephones by using a bank card in on-line regime.
Electronic money (e-money) is cash in an electronic form stored on an electronic money instrument, which is accepted as a means of payment by parties different than the e-money issuer. In Bulgaria e-money issuers can be banks and the Central bank.
Electronic banking (e-banking) includes bank services and operations performed through a remote access of the client to his/her account as they are serviced and realized through electronic channels (e-channels) for registering and banking. E-channels according to the type of client’s access are as follows: banking through personal computer (PC), phone banking, Internet banking and mobile (GSM) banking.
Usually, the client himself/herself can perform the same bank services and non-cash operation through e-banking as those performed in the bank offices. However, it is possible, some bank services and products to be available only through e-banking but there are also some bank services and products, which can be done only in the bank offices.