Plastic Cards: peculiarity of using in Kazakhstani and foreign practice

 

CONTENT: 

Introduction Theoretical aspects of plastic cards…………………………………………...5 Analysis of actions with plastic cards………………………………………..12 The development of plastic cards market in the Kazakhstan………………..21 Conclusion References

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

INTRODUCTION 

     Economic development of any country today is impossible without a highly efficient system of  money and the use of modern payment mechanisms. Billing mechanism - the structure of the economy, which mediates the "metabolism" in the economic system. Payment methods can be divided into cash and noncash. Cashless payments are gradually replacing the cash payments in the monetary systems of different countries. The main share of non-cash settlement accounts for commercial banks. To them belongs to the most important settlement and the payoff  function in the payment system of the state. Today's payment systems allow the bank to expand the scope of services, covering it unprofitable for cash transactions and translating them into profitable for a  non-cash.

     With the development of economic ties is the process of integrating the economies of individual countries and the development of payment systems, in particular, towards the development of non-cash forms of payments, which, in turn, have been widely used in today's world. One of the instruments of cashless payments is a plastic card. In most economically developed countries, a plastic card is an essential attribute of trade and services. Transactions using payment cards show the degree of integration of the banking system and society. Suffice it to say that non-cash payment for goods and services in industrialized countries is 90% of the total money transactions.

     If you compare bank card deposit accounts, as a mechanism to attract public funds, the cards are less effective, because the interest rate on the card account balance may be significantly lower than the interest rate on the deposit. But interest in the card is still retained, as it is due not so much interest, many other factors: ease of use, automatic provision of bank credit, ability to defer repayment of the debt, the regular receipt of information on transactions.

     Introduction of the settlement system based on bank cards has advantages for the bank:

• overcome spatial constraints on attracting and servicing customers;
• attracting new business and private customers;
• increase in current assets;
• reducing overhead costs.

     Obvious advantages from the use of bank cards trade and service enterprises. This decrease in the cost of collection, transportation and "cashing out" means the possibility of reducing prices in the sale of "currency" of goods, the simplification of the calculations with the buyer (no deposit and counting of money the buyer and the cashier), and the advertising company.

     With regard to industrial enterprises, the occurrence of a payment system enabling them to significantly reduce the dependence of the delayed payments from the state budget or the slowness of its business partners.

     State's interest in the implementation of settlement by bank cards are also obvious:

• down a whopping cost of collection of cash and issuance of banknotes and coins;
• simplified accounting of money movement and collection of taxes.

     Technology without payment of cash helps reduce the crime rate around companies with cash, the introduction of these calculations will help to smooth and to some extent reduce the rate of inflation.

     The situation in the market of plastic cards in our country, certainly different from the situation in developed countries. Cashless payments for such countries - is the norm. In Kazakhstan, people trust only in cash.

     The diversity and complexity of changes occurring in the banking sector in Kazakhstan, calls for the development of effective approaches to the mechanism of realization of functions of banks.

     Lack of a uniform technical policy in the infrastructure for widespread use of cards to trade and retail banking operations, hinders the development of the most popular worldwide banking product, not to take advantage of cashless payments and increases the cost of the process of service cards for banks.

     In this regard, conducting research in the field of plastic cards in the interests of all participants is currently very relevant, has a theoretical and practical significance. The newness and relevance of this topic is beyond doubt, as in the future this type of settlement will be familiar to most people in Kazakhstan.

     Recently, many commercial banks have undergone great changes, in order to be competitive in the growing banking competition. Many heads thinking, at the proper level to serve each customer and providing him with a package of necessary services to prevent the loss of clients and its outflow to the competition. Legal research motives of choice customers of banks shows that in the first place they put the quantity and quality of services, etc. - the price of such services in the bank and other banks, the speed of operation and more.

     The aim of this course work is to examine the organization of the bank with plastic cards as a method of implementing a market strategy of the bank and find peculiarity of using plastic cards.

     Subject of  research: plastic cards as a payment instrument.

     Object of study: operations with plastic cards to commercial banks.

     To achieve this objective were as follows:

     - Comprehensively and systematically investigate the system of cashless payments, to reveal its contents and the basic principles of the organization;

     - To study the regulatory framework in the field of legal regulation of non-cash settlements in the Kazakhstan;

     - To consider the types of plastic cards as the basis of customer relationships and the bank;

     - To give the notion of plastic cards provided by commercial banks;

     - To evaluate the organization of work with plastic cards;

     - Explore methods of operations with plastic cards;

     In the process, widely used in scientific methods and techniques of knowledge: logical statements, analysis, grouping, and a systematic approach.

     Were used textbooks, articles of economists, published in leading economic journals. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

     I.  Theoretical aspects of plastic cards 

     Banking - one of the oldest occupations of mankind. Today there are many services provided by banks to their customers. One of the fastest growing types of services is the simulation of plastic cards.

     Plastic card - a tool for non-cash payments and a means of obtaining credit.

     The plastic card - this is a personalized payment tool that provides a person the opportunity to enjoying card cashless payment for goods and / or services and obtain cash at branches of banks and automated teller machines (ATMs).[1.]

     The plastic card as a means of cashless payments was introduced in the U.S. at the turn of the 50s. Few people at that time imagined that it will produce a revolution in banking. However, at present it is quite obvious. Today more than 200 countries use credit cards in payment transactions. It is in most cases they are the key element of the electronic banking systems. Plastic cards confidently occupy leading positions in the organization of monetary turnover of industrialized Western countries, gradually replacing checks and checkbooks.

     Operations with plastic cards have opened up new prospects for financial services clients and correspondingly increased the possibilities of obtaining banking profit due to fees charged to card transactions, increasing the number of clients by providing services to a new type, etc.

     In our country first credit card infiltrated with foreign tourists and businessmen in the late 60s.  Like virtually every transaction involving currencies, work with the cards was strictly regulated, and was under the watchful eye of the public. Within the country the cards were issued - all the work to them restricted to a settlement with the cards of international systems that have been adopted in some hard-currency shops and hotels. [2.]

     The plastic card is a plate, made ​​of special resistant to mechanical and thermal effects of plastic that has the following geometric parameters:

• width -85,595 ± 0,125 mm;
• height - 53,975 ± 0,055 mm;
• thickness -0,76 ± 0,08 mm;
• radius of the circle at the corners of -3.18 mm;

     On the front side of credit cards cause a financial institution logo, trademarks, payment systems, card number, cardholder name, card expiry date. In addition, there is usually a card with a hologram of the character specified payment system, may also attend a special element, visible only under ultraviolet light. On the front side of the chip card is a chip, its location is strictly defined by the standard 1807816-1. On the back of the card are the magnetic strip (which is also a place strictly defined by the standard), signature panel and damage the printing method of the text of the bank. In some payment systems are allowed in a particular field (most often - on the back of the card) to put photo holder. [1.]

     In preparation for the production of graphics card is undergoing, the physical and electrical personalization.

     Under the graphic personalization is sometimes understood to apply to the card printing means a financial institution's logo - the issuer, usually the same - the application using special printers personal information about the holder.

     Physical customization is to be applied to personal data card: the card number, name and owner name, validity period, and sometimes some additional information (e.i. name of the agent bank, which issued the card directly to the client, or an organization that operates the holder) .

     The number of payment cards is a sequence of digits, usually 13 to 19, most - 16. In payment systems, bank card number starts with 6 digits, called the BIN (Bank Identification Number). Ends with a check digit card number, which is calculated from the previous figures with the help of a simple algorithm.

     Embossing (stamping) - a method of physical personalization. Embossed characters - convex, dyed special paint (usually silver, black or gold). Embossing is necessary for visual identification of the cashier or teller of personal data about the holder and to transfer them from the card to slip (invoice-notification).

     "E" cards and the rules are accepted only in electronic devices (ATMs, cash registers, POS terminals).[1.]

     Embossing of cards produced in a special way, the so-called personalization in which the symbols are obtained not convex, and how to print on a typewriter on a sheet of paper, almost flat. Imprinter is not in a position to move personalization on the card text on the slip, which does not perform surgery without the use of electronic devices. Sometimes, instead of printing personalization used the same data graphic printer.

     When personalization is encoded magnetic stripe or the recording of information in the chip.

     Electric personalization allows you to identify the card and its holder, and also to verify the solvency of cards when taking her for payment or issuance of cash. Access to the recorded data is protected by a coded password (or PIN-code).

     PIN-code - a personal identification number - a sequence of digits (usually 4-6, but can be up to 12) is used to identify customers. Due to the fact that the PIN-code is designed to identify and authenticate the client, his knowledge must be known only to the client.

     The bank provides the client with a card, which is associated with a certain amount. This sum or through a loan from the bank, either through their own contributions customer card holder can spend. Realization of payment is that when you buy it on the map shop, "writes" for the customer debt in the amount of the payment. A bank received from the store a document, is deducted from customer's account by that amount in the store.

     There are also POS-terminals, or trading terminals designed for transaction processing in financial settlements with the use of plastic cards with magnetic stripe and smart cards. The use of POS-terminals to automate maintenance operations cards and significantly reduce maintenance time. Capabilities and integration of POS-terminals vary greatly, but typical modern terminal is equipped with devices like reading a smart card and magnetic stripe cards, non-volatile memory, ports for PIN-keyboard, printer, connect to a PC or an electronic cash register . [1.]

     ATMs (automated teller machines) - a special device respectable size and weight, are placed both indoors and outdoors, and some of them are working around the clock. Designed for the issuance and encashment of cash for operations with plastic cards.

     ATM is equipped with card reader, and for users to interact with the card holder as a display and keyboard. Additionally, ATM allows the card holder to receive information about the current state of the account, as well as, in principle, to conduct operations to transfer funds from one account to another. Because ATM is a repository of cash, most models are designed to work in on-line-mode cards with magnetic stripes, but there were also devices that can work with smart cards and off-line-mode.

     Banknotes from an ATM located in the cassette, which, in turn, are in a special vault. Number of tapes determines the number of denominations of banknotes issued by the ATM. Dimensions cassettes are regulated, which makes it possible to charge virtually any ATM bills.

     When purchasing goods, payment for services or work, if the amount of money for settlements is insufficient, then the cardholder will be asked to take a different form of payment. In the absence of funds in the account at all card will be placed in the stop-list (list of blocked numbers are not accepted for processing), its action will be suspended, discontinued operations. [3.]

     Also in stop-list are recorded lost or stolen cards, that eliminates any possibility of unauthorized or malicious use.

     In international practice, the responsibility for any expenditure of money in lost card (provided that the owner reported the incident to the bank) has issued the card bank, not its owner. In Kazakhstan, requirements of banks are inother. First, the loss of card you need to tell the bank not only verbally but in writing. Second, the bank's liability to the owner of a lost card can not concretized. Therefore, you should take care of in advance to this point has been settled in the contract as detailed as possible and specifically.

     The plastic card is a document in the form of cards from an inflexible plastic, non-transferable and helps its holder to send goods and services and money from the account.

     There are many signs by which one can classify cards.

     1. By the material of which they are made:

     - Paper (cardboard);

     - Plastic;

     - Metal.

     At present, almost ubiquitous plastic cards received. However, for the identification of the holder (owner) cards are often used paper (cardboard) cards, sealed or molded in plastic. This laminated card. Lamination is fairly simple, cheap and easily available procedure, and therefore, if the card is used for calculations, then in order to improve security against counterfeiting are more advanced and complex technology of manufacturing of plastic cards.

     In contrast to the metallic plastic cards can be easily heat-treated and pressure (embossing), which is very important to personalize the card before issuing it to the client.

     2. By way of recording information on a map:

     - A graphical recording;

     - Embossing;

     - Bar codes;

     - Encoding the magnetic stripe;

     - The chip;

     - Laser recording (optical card).

     The earliest and simplest form of recording information on the card was and is a graphic. It is still used in all maps, including the most technologically sophisticated. Initially applied only to the card name, cardholder's name and information about its issuer. Later in the universal banking cards had provided a sample signature, name and surname are embossed (mechanically embossed).

     Embossing allowed to execute the operation much faster card payments, making the impression on her slip. The information embossed on the card, immediately transferred to a carbon paper to slip. In order to combat fraud slips may be used without copying the layer, but a way to transfer the information embossed on the card essentially remained the same - mechanical pressure.[1.]

     Embossing is not completely replaced the graphic image. Moreover, with the advent of systems based on paperless, card number and name of the holder were again applied to the card using a graphical method Officers.

     Bar-coding. Record information on the card with the bar-coding was used before the invention of the magnetic strip and the payment systems of distribution did not receive. However, cards with bar codes, similar to those applied to goods that are quite popular in the special card programs do not require calculations. This is due to the relatively low cost of cards and reading equipment. In addition, for better protection of the bar codes are covered by an opaque layer to the naked eye and reads in infrared light.[3.]

     The invention in the late 60's automatic cash dispenser machines have revolutionized and in the card business. In order for such a device could use the card holders, on the back of cards began to stick a strip of magnetic tape.

     On the magnetic stripe bank cards are usually stored in encrypted card number, expiration date, and cardholder's PIN.

     Magnetic recording is one of the most popular to date methods of applying information on plastic cards. But after 15-20 years, it became clear that the magnetic strip will not provide the required level of information protection against fraud and counterfeiting. Then, experts started looking for a better way of recording information. It proved to be a chip (from the English, chip - a crystal with integrated circuit) or microchip. Cards with a chip is also very often called smart cards.

     Despite the obvious benefits of chip cards has so far been limited. The reason is simple - this card is much more expensive than a card with a magnetic strip. Only in recent years, when the damage from the fraud and card in international payment systems has become alarmingly high and rising, it was decided that a gradual transition to chip cards.

     Not all chip cards, strictly speaking, are the chips that have a microprocessor. Experts divided them into two categories: memory cards and microprocessor cards properly. Memory cards come in one time (write once / read many), and allowing multiple overwrites. At the same time greatly exceeds the amount of memory cards with a magnetic strip and also allows you to better protect recorded information. In most cases bank card programs, including a Kazakhstan based on smart cards, used it "protected memory" as giving the best price / security.

     In principle, other possibilities open up the real microprocessor cards, because they have their own internal logic and, in fact, is a microcomputer.

     In 1981 Dzh.Dreksler was invented by an optical card. Writing and reading of information from the card is a special apparatus using a laser. The main advantage of such cards - the ability to store large amounts of information. Such cards are already used for pocket "medical history", but in banking technologies and distribution have not yet received due to the high cost of both the cards and reading equipment.

     3. On a common purpose:

     - The identification;

     - Information;

     - For financial transactions (accounts).

     In principle, this distinction is not mutually exclusive. For example, a large company may issue to each of its employee card that:

     1) a pass authorizing (limiting) passage to certain areas of the enterprise (identifies function);

     2) on the same map can be written in a coded form of a "case history", or any other important information about the card holder (information function);

     3) In addition, this card can be used also for calculations in the dining and shops of this company (design feature).

     System using multi-function cards really exist abroad, and it is clear that the trend of combining many functions into a single plastic card are very promising, since such a versatile and easy-to card issuer and the holder.

     4. For issuers:

     - Bank (universal) cards issued by banks and financial companies;

     - Private (private) cards issued by commercial companies for settlements in trade and service network of the company.

     It may seem that the companies in order to increase the volume and variety of transactions with their cards should strive to make them more universal, uniting in emissions from other companies, and even better with banks. This is only partially true. A significant portion of cards issued and will be issued by companies themselves.

     5. Banking and other cards used for the calculations:

     - Stand-alone "electronic purse";

     - "Electronic purse" with duplicate accounts with the issuer;

     - "Key to account" - a means of identifying the owner of the account maintained by the issuer.

     The vast majority of bank cards are the identifier, not a purse. These are all the cards "VISA", "Eurocard / MasterCard", "American Express", Kazakhstann "Union Card" and "STB Maps."

     It should be noted that magnetic stripe cards are seldom used as a "purse", as the magnetic stripe does not provide an acceptable level of protection for the issuer's written on her information. Generally as "electronic wallets" are applied to the chip card.

     From this perspective, the term "plastic money" is not quite correct in relation to the majority of magnetic cards used by customers.

     6. By category of clientele targeted by the issuer (in international payment systems, it is kinds of cards or food):

     - Normal card;

     - Silver card;

     - Gold Card;

     - An electronic card.

     For simplicity and brevity, we can say that the usual card is designed for the average customer. This "Classic Visa" and "Mass (Standard) Eurocard / MasterCard".

     Silver Card is a business card (Business Card) and is not intended for individuals and for employees of organizations (companies) authorized to spend in certain funds within the company.

     Gold Card is designed for the most affluent, wealthy clients.

     In addition, Visa and European systems have cards that can only be used at ATMs for cash withdrawals and electronic terminals: "Electron Visa", "Cirrus / Maestro". They operate within the balance in the account for them, as a rule, the credit card holder is not available, so they can be granted to any customer, regardless of its level of security or credit history. 

     Table 1 - Banks - participants of the system "MasterCard - Europay" 

Area	Number of banks
Canada      Europe      Latin America      Middle East / Africa      Asia / Oceania	626      7691      339      96      314
TOTAL:	21 747

 
 

     7. In Kazakhstan there was a separation of corporate and personal cards, and sometimes even produce "salary" cards: the issuer enters into a contract with the organization, and holders of cards is its employees as individuals.

     Externally, this classification was adopted in similar international systems, but in reality it is based on the legal status of a client with whom the issuer enters into a contract on the issue and service cards. Their difference is confirmed in practice. Very often in the Kazakhstan standard card is issued as an enterprise, and, conversely, there are cases when the business card given individuals who believed that they were on the status of "put silver card."

     In the international classification is still more important set of services that is provided in a package with a particular card. For example, the monthly limit of not less than $ 5,000 for a gold card or issue a new card to replace the lost within 24 hours anywhere in the world, or insurance against loss of business documents and delay transport.

     In the cards with bar code as an identifying element of the bar code is used, a similar code applicable to labeling.

     Cards with magnetic stripes are by far the most common - are in circulation for over two billion cards of this type. However, this type of card is vulnerable to fraud with respect. In the United States in 1992, the total damage from the fraud with credit cards with a magnetic strip (without loss of ATM) has exceeded one billion dollars. However, the existing infrastructure using their payment systems and the lack of world leaders to "card" business - companies VISA and Europay – full sized standard for more than a perspective view of cards - smart cards - are the cause of the intensive use of cards with magnetic stripe today.

     In smart cards, the information carrier is already a chip. In the simplest of the existing smart cards - Memory Card - Memory can have a value ranging from 32 bytes to 16 kilobytes.

     Card with a microprocessor are essentially microcomputers and contain all the relevant key hardware components.

     Supersmart card. An example is the multi-purpose card company Toshiba, used in the system VISA. In addition to all the usual features of microprocessor cards, this card also has a small display and keypad for data entry. This card combines credit, debit and prepaid cards, as well as serves as a clock, calendar, calculator, currency conversion exercises, can serve as a notebook, etc. Because of the high cost supersmart card are not widespread now, but their use is likely to grow.

     In 1981, J. Drexler was invented by an optical card. Optical memory cards have a higher capacity than the memory card, but the data on them can be written only once. In these maps using WORM-technology (write once - read many). Writing and reading information from a map by a special apparatus with a laser (hence the other name - laser card). The technology used in the charts, similar to that used in laser discs. The main advantage of such cards - the ability to store large amounts of information. Such cards in the spread of banking technologies have not yet received due to the high cost of both the cards and reading equipment. 

     II.  Analysis of actions with plastic cards 

     Economic development of any country today is impossible without a highly efficient system of money and the use of modern payment mechanisms. Practice shows that the everyday problems of funding, lending to the economy, budget, and the problem long term, can successfully solve the rapid development of various forms of cashless payments.

     Billing mechanism - the structure of the economy, which mediates the metabolism of the economic system. Payment methods can be divided into cash and noncash. Cashless payments are gradually replacing the cash payments in the monetary systems of different countries. The main share of non-cash settlement accounts for commercial banks. To them belongs to the most important settlement and the payoff function in the payment system of the state.

     The close relationship bank accounts and bank deposits Treatment involves consider the essence of bank accounts, primarily through the determination of their place in the clearing system.

     Calculations carried out by a commercial bank can be defined from different points of view: firstly, in terms of the settlement technique, and secondly, depending on the particular organization of settlements and, thirdly, the economic essence of banking.

     Clearing system is a set of principles of organization of settlements, their requirements, forms and methods of calculation. "This definition describes not only the system of cashless payments, and payment systems created by the bank for their conduct.

     In economic science has developed an ambiguous understanding of the principles of non-cash payments. Traditionally, these principles are as follows: making all payments by enterprises and organizations through the establishment of banks, payments are made, usually after the shipment of goods, services, works, or maturity of financial, credit and other financial obligations, the payments are made ​​if funds are available for the payer's account or credit it to the right, there is agreement of the payer to withdraw funds from his account. [4.]

     Entrenched principles of non-cash payments are divided into general economic principles and specific. To general economic principles of efficiency and differentiation attributed cashless payments. Specific guidelines are divided into two groups. The first group makes the organizational aspects of the calculations. The second group, revealing the economic basis of payment transactions, "includes such principles as the target character, maturity, security of payment." This definition reflects the closeness of the principles of cashless payments and lending.

     Its position on the principles of non-cash payments made ​​by the participants of the International Conference on Banking in Kazakhstan. The recommendations of the conference pointed out that the fundamental principles of the calculations is the equality of all payments made ​​by them with the consent of taxpayers.

     In spite of the in homogeneity to define the principles of non-cash payments include the following, the most common in the works of local economists:

• obligatory deposit of funds in credit institutions;
• the principle of consent of the payer to withdraw funds;
• the principle of payments within its own funds and credit;
• principle of optimum speed of non-cash payments;
• the principle of periodic payment order;
• principle of cost-effectiveness of doing non-cash transactions.

     The principle of cost-effectiveness of doing cashless payment cuts across all other principles of non-cash payments. And this is natural: the principle, as well as other principles, based on the categories of time and every time gains can not be overestimated.

     Clearing system is created and not regulated by the Central Bank and commercial organizations: international payments - the governing bodies of the respective settlement systems (e.i., SWIFT), payments by plastic cards - bodies of payment systems, settlement of stock market participants - regulators of this market. In addition, they have quite a significant technological features. [4.]

     These components are now available in almost any country in the world, except in the most underdeveloped. So have we. It must be borne in mind that each component is usually not a single thing, and consists of a set of interacting entities, technological systems, rules, protocols, etc. Typically, an exception to this is the system of the Central Bank, but we have it yet united only in terms of affiliation: CBR is a legal entity and all its institutions are units of the entity. In CBR systems are one of the only rules that payments approved by the departmental instructions. Same technology, procedures and hardware and software systems, according to many members of the Central Bank, even now are a pretty motley "zoo."

     The essence of non-cash payments and payment systems based on plastic cards lies in the definition of money and its functions. From an economic point of view of the nature of cash and cash is the same. Creating a bank payment systems based on plastic cards do not give them the opportunity to receive the share premium, it remains the prerogative of the state.

     A credit institution shall have the right to issue bank cards the following types: bank cards, credit cards and prepaid cards. Payment card designed to make operations of the holder within the established credit institution - the issuer the amount of money (spending limit), settled by cash at the expense of the customer. Located on its bank account or credit extended by a credit institution - the issuer pursuant to the customer's bank account funds (overdraft). [5.]

     A credit card is intended to carry out its holder transactions settled by the expense of funds provided by the credit institution - issuer client within the limit set in accordance with the terms of the loan agreement.

     1. Prepaid card is designed to carry its holder transactions settled by the credit institution - the issuer in its own name, and satisfies the requirements of the right holder of a prepaid card to a credit institution - the issuer for payment of goods or issuance of cash.

     2. A credit institution shall issue payment cards and credit cards to individuals, legal persons and individual entrepreneurs, Prepaid Card for individuals.

     3. A credit institution may undertake in the territory of the Kazakhstan, the issuance of bank cards issued by other credit institutions - issuers and issuers of payment cards - whether foreign companies that are not foreign banks.

     4. Specific conditions for the grant of funds for settlement of transactions committed through the use of payment cards, credit cards, the order of return offered by cash and accrual and payment of interest on such funds may be determined in agreement with the customer.

     5. On the territory of the Kazakhstan carried out calculations of credit institutions with organizations on trade operations carried out with the use of payment cards, and give out cash cardholders who are not clients of these credit institutions.

     6. A credit institution shall have the right at the same time to issue bank cards, acquiring of payment cards, as well as the distribution of payment cards.

     7. Internal regulations approved by the governing body of a credit institution authorized by its charter, and shall be binding on all employees of the credit institution.

     8. In making the client - individual transactions using prepaid card bank account agreement with an individual is not.

     9. When performing operations with payment card credit institution must identify the holder.

     To consider directly the existence of legal characteristics of non-cash payments based on plastic cards need to understand the nature of legal relations arising from the implementation of the settlement, payment and other transactions. It is important to determine the extent of the rights and obligations assumed by their subjects, the limits of liability as well as features of an object.

     In the broadest sense, the object of any relationship is understood that, about which actors come into relationship, ie, something about which they have become carriers of reciprocal rights and duties. By the law of the “Monetary system settlements between legal entities, as well as calculations involving citizens connected with their business activities carried out on a cashless basis "(paragraph 1 of Art. 861 Civil Code).

     The object of legal settlement is money to be paid for work performed, products delivered, services rendered.

     By itself, a way of cashless payments based on plastic cards as not to create new means of payment - "non-cash", which should be included in the concept of object relations calculated. [6.]

     The development of technology has resulted in new terms – “e-money " and " electronic payments ". Related to this next evolutionary step of monetary circulation, and the object of such calculations are still the same non-cash money." Electronic money "is a subspecies of non-cash and have all the characteristics inherent in non-cash money. Signs of the cost, as reflected in the electronic media, are directly dependent not only on the special subject - the bank, but on the whole system for their traffic, including the technical means for receiving, processing and storage of information (computers, databases, data, special software to support payment transactions, links and such means of payment and settlement operations, such as ATMs, POS terminals and plastic cards.) emergence of digital media value generated new legal problems with the continued economic nature of newly minted money. These issues lie at the area of money laundering of the shadow economy and human rights. There is a special intergovernmental commission on financial transactions (Financial Action Task Force, FATF) of the representatives of 26 countries in exploring the use of electronic money to launder illicit proceeds. She wants to make sure that you create a system of electronic money will banks to identify suspicious transactions and report them.

     In contrast to the banking regulations that reinforce the mandatory nature of relations in the implementation of cashless payments, HA has expanded the possibility of the parties to establish the rights and responsibilities at its discretion.

     The legislation does not set specific rules for the establishment, operation, management, determination of liability in the payment systems. All relationships in the payment systems are contractual in nature. Definitely one the right space, developed in this area will be solved. [7.]