(i) Closed Loop
1. In closed loop cards, money is metaphorically stored on the card in the form of binary-coded data.
2. Closed loop cards are issued by a specific merchant or merchant and can only be used to make purchases from specific place. e.g. chennai metro rail travel card.
(ii) Open loop (multipurpose)
1.Open loop cards can be used to make debit transaction at variety of retailers.
2. It is also called as prepaid-debit cards.
3. It can be used anywhere the branded cards are accepted. e.g. Visa gift cards.

1. Unconditional - the beneficiary will receive funds regardless of whether he fulfills his obligations to the buyer or whether he would deliver the goods or perform a service of a quality consistent with the order.
2. Irrevocable - a correctly processed transaction cannot be reversed andits money cannot get refunded (theso-called settlement finality).

1. Electronic Funds Transfer (EFT) is the "electronic transfer" of money over an online network.
2. The amount sent from the sender's bank branch is credited to the receiver's bank branch onthe same day in batches.
3. Unlike traditional processes, EFT saves the effort of sending a demand draft through post and the inherent delay in reaching the money to the receiver.
4. Banks may charge commission for using this service. EFT is a widely used method or moving funds from one account to another in B2B business models.

1. Electronic cash is (E-Cash) is a currency that flows in the form of data.
2. It converts the cash value into a series of. encrypted sequence numbers, and uses these serial numbers to represent the market value of various currencies in reality.

1. CVV - Card Verification value
2. CVC - Card Verification code
3. It is a 3 digit code usually printed to the left of signature pane validates the card.