divided. They are issued as individual only to private persons but also as corporate could be issued separately for every family member of a card account owner. Family cards in some specified sense are analogue to corporate – the right of making payments under the fixed limits is allowed to the card’s holder family members. Whereby the additional users are supplied with separate personalized cards.
Banking cards could be either separated according to payment systems or Card Associations in frames of which services are rendered. The most widely spread in the world are the cards of the following systems: VISA, EuroCard/MasterCard and American Express (AMEX). One card could be supported and served only by one payment system.
One more type of cards issued in the frame of payment systems is electronic cards. Many payment systems have them. In VISA for example it is VISA Electron, in MasterCard – Maestro. As was mentioned before such cards are non-embossed and intended only for electronic application. They could be cashed in cash machines and used for making payments for the goods and services purchased in the points of sale equipped with special electronic terminals. There are electronic cards which are intended only for getting cash money in cash machines, for example in MasterCard system the card Cirrus.
Virtual money is a special type of electronic money and its appearance is linked to the Internet opportunities. Nowadays there are a vast number of different services rendered in the Internet and paid by cybercash.
Thus it is possible to make shopping in the cybershops, to visit a cyber casino, to take up the shares, to use the analytical information, to get the consulting services, etc. For the goods and services payments via Internet there are some cyber payments systems intended for quick and secure settlements between the numerous of users. Money in these systems are represented by digits, thus it is called digital money.
Digital money could be kept on a computer hard drive or on a memory of smart cards (microprocessing plastic cards). The emission of digital money is also performed by bank which serves the cyber payment system. The issued digital money are provided by the means kept on the client’s banking account. Special security measures and tariff policy make the usage of these cards cost effective and reliable.
Nowadays throughout the entire world the co-branded plastic cards are very popular. Recently they are actively implementing into the CIS countries. Co-branded credit and depositary cards are the cards issued by banks and some companies collaboratively. They allow not only making payments of the goods and services but either give an opportunity to receive discounts and bonuses form a company- partner of the bank.
Abroad the co-brands constitute the best part of all plastic cards. Thus in Europe every fifth card is co-branded and in USA – every second.
The most successful and numerous cards are the cards which are issued in cooperation with the gross trade networks and supermarkets, they consist about 60 % of all the co-brands in the world. On the second place are the projects with the airline companies (about 10 %), then the projects with the petrol station chains and cellular service providers follow (5 % of each).
The most attractive in such cards for consumers is «cashback» – bonuses calculation for each purchase, usually it is 1-2% from the goods cost. The amount accrues gradually and in the end of the year the client can get it.
As to the co-brands with the airline companies here the client gets not only a money interest but the bonus miles either which in following can allow to get a free of charge ticket, to upgrade a service class or to book a hotel room.
Such projects require a heavy spending, large marketing work and motivation of both sides. It is not enough only to issue the card, it is necessary to implement it into the market actively. Herein it should be noted that the usage of co-branded plastic cards is very profitable form of sales. According to the statistics the turnover of these cards in the sales and service networks is on 30 % higher than of common.
The most perspective sphere in Kazakhstan is telecommunications because nowadays the cellular service providers have one of the most numerous clients base, because today the mobile phones are available for almost all.
The comprehension questions
1. List the types of metal money circulation.
2. What three kinds of bimetallism do you know?
3. Explore the meaning and name the types of gold monometallism.
4. Explain the meaning of paper money and tell about their evolution.
5. What kinds of credit money do you know?
Section 3. MONEY CIRCULATION
1.3.1. The meaning of money circulation
Money plays an exclusively important role in the market economy. Market is impossible without money and money circulation. Money circulation is a monetary movement in an internal business volume in cash or non-cash basis which serves to the goods realization and also to non commodity payments in business.
Money circulation mediates the gross national product turnover including the incomings of different classes. Money circulation maintains the movement not only of the goods but of loan and fictitious capital.
In the conditions of commodity-money relations in the processes of trading in a commodity, rendering of services and also execution of various commitments in monetary form the payments and settlements appear. The whole complex of all the money payments forms a money turnover the bigger part of which the wire transfers of enterprises for the realized goods and services consist. Such payments also mediate a part of money incomes and expenses of population.
Money turnover represents a complex of cash-in-hand flow and cash wire movements. There is a tight fit between them both: money constantly transfers from a cash form into a cashless and otherwise. The correlation of these two constituents changes as settlement relations develop and improve.
With the commodity circulation and settlement relations development the structure of monetary stock and correlation between the cash and cashless spheres of money turnover changes. If to the end of XIXth century the cash settlements prevailed in a money turnover of any country but nowadays in the developed countries the vast majority settlements are made in cashless order.
The cashless money circulation prevails which is served by cheques, credit cards by means of transfer of sums against the invoices of banks and savings banks, electronic translations. Thanks to the settlements computerization drawn on the accounts money easily transfers from cashless into cash money circulation. Besides the money turnover is completed by the treasure bills, obligations, certificates which confirm bank inpayments of a definite sum or gold.
The different instruments of the bank current accounts and deposits usage appeared. Among them are credit cards of «now» accounts for payments against the orders of writing off of amounts from saving accounts, of accounts for money transfers to third persons, etc.
1.3.2. Cash-in-hand flow and its organization
Cash-in-hand flow is a cash money movement in the sphere of turnover and its performance of two functions: of the mean of payment and of the mean of circulation. Cash money is used for payments of goods, services and works; for settlements which are not connected with movement of goods and services (payment settlements of salaries, bonuses, allowances, stipends, pensions, their revenues, social payments, for housekeeping needs, for business trips, for representational expenses, for agricultural products purchases, etc.).
The cash money movement is performed by means of different types of money: banknotes, metal coins, other credit instruments (bills of exchange, cheques, credit cards). The emission of cash money is performed by the Central (as a rule State) Bank.
As was mentioned before in Kazakhstan it is the National Bank which issues cash money and withdraws it in case of its worn-out state and changes money onto the new samples of notes and coins either. There are the following normative legal documents which take a control of a cash money circulation in our country:
The board of directors of the National Bank of the Republic of Kazakhstan decision dated from March 3, 2001 № 58 «The regulation of cash and safe deposit transactions conducting in regard to an encashment of banknotes,