The second step in understanding the rules is to understand how the wagers are placed. First the banker places his stake. If any player wants to match the entire stake he says "Banco". In this event no other player places any bet. If there is no "Banco" call then the players place their individual stakes. The sum total of the player’s wagers may be less or more than the banker’s wager. If it is less then any player can make up the difference by increasing his wager. If it is more then the banker has the option of making up the difference or of refusing the extra bet amount.
The third step in understanding baccarat rules is to understand how the winner is decided. After the wagers are placed the two cards are dealt to the player and two to the banker. All cards are dealt face down. The player and the banker see their cards. If any of their hands has a value of 8 or 9, he announces that value. The cards are then turned face up and the one with the higher value is the winner. If neither the player nor the banker are in have a value of 8 or 9 then the game proceeds as follows. If the player’s hand value is 4 or less he has to accept a third card. If the player’s hand value is 6 or 7 he has to refuse a third card. If the player’s hand value is 5 then he has the choice whether or not to accept a third card. After the player has completed his move the banker decides if he should take a third card. Unlike the player, the dealer can make a free choice. Finally the two hands are compared and the one with the higher hand value wins. In the case of equal hand values there is a tie.
The fourth step in understanding baccarat rules is to understand the payouts. In baccarat, one player plays against the banker. The remaining players wager either on the player or the banker. If they wager on the winner they are paid out at 1 to 1. If they wager on the loser they lose their bets. In case there is a tie their wagers are returned to them.