Function of credit cards
Posted on May 4, 2008 - Filed Under Loans |
Before talking about credit cards, just have an idea about the cards. Credit cards mean a procedure of payment through a small plastic card. The credit cards are different from debit cards, as after every transaction your money will not be removed from the account. Against any purchase card holders are allowed to make the payment to the merchants. Most of the credit cards are of same size, and the general size is 85.60 x 53.98 mm. After the customers get the approval of an account, the credit cards are issued to them by the bank. The payment mode is very simple; after making any purchase if the merchant accept credit cards, the card holder gives the card to swap.
The merchant gives a receipt to the card holder where he/she needs to do signature. By entering the personal identification number, amount will be deducted from the card holder’s account. Nowadays, it often happens that if you are not present at the spot, then your verbal authorizations will be accepted over phone, or through internet. It just takes a few seconds to verify the customer’s account, whether the credit cards are valid, or not. The credit cards have a magnetic chip through which data is obtained. The card provider sends a statement to the consumer every month, which contains the record of purchases, or any outstanding fees. Card holders do have an opportunity to claim any dispute, if not then he/she needs to pay the bill by the due date. Banks are mainly the provider of credit cards, and the customers are charged an interest on the billed amount, and the rate of interest is quiet high. There is nothing to be scared; if you use them carefully then you do not have the tension of getting highly charged.
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