Meaning of 'Credit Card' :-
'Credit Card' is also called as 'Plastic Money' 'Credit Card' is any card that may be used repeatedly to borrow money or buy products and services on credit. It is issued by banks, savings and loans, retail stores and other businesses.
'Credit Card' is issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Credit cards charge and interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made and borrowing limits are pre-set according to the individuals credit rating. Credit cards have higher interest rates (around 19% per year) than most consumer loans or lines of credit. Almost every store allows for payment of goods and services through credit cards. Because of their wide spread acceptance, credit cards are one of the most popular forms of payments for consumer goods and services in the U.S.
'Credit card' is a standard size plastic token, with a magnetic stripe that holds a machine readable code. Credit Cards are a convenient substitute for cash or check, and an essential component of electronic commerce and internet commerce. Credit card holders (who may pay annual service charge) draw on a credit limit approved by the card issuer such a bank, store, or service provider (an airline, for example). Card holders normally must pay for credit card purchases within 30 days of purchase to avoid interest and/or penalties.
A credit card is a system of payment named after the small plastic card issued to user on the system. A credit card is different from a debit card. In that it does not remove money from the user's account after very transaction. In the case of credit cards, the issuer lend money to the consumers (or the user). A debit card requires the balance to be paid in full each month. In contrast credit cards allow the consumers a continuing balance of debt, subject to interest being charged.
A credit card also different from a charge card/cash card which requires the balance to be paid in full each month. In contrast, a credit card allows the consumer to 'revolve' their balance, at the cost of having interest charged cash card is used like currency by the owner of the card. Most credit cards are issued by banks or credit unions, and are the shape and size specified by the ISO/IEC 7810 standard as ID-1. This is defined as 85.60 x 53.98 mm in size.
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.
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