subject: A Credit Card Is A Method Of Payment. [print this page] The issuer of the credit card awards a line of credit which means a facility to the consumer to borrow money for payment to a wholesaler or as a cash advance to the user.
Credit cards permit the consumer a continuing balance of debt. This debt is subject to interest.
Usually credit cards are issued by banks and credit unions. The usual size of a credit card is 85.60 x 53.98mm. Read more Scrapbooking papir
Once an account has been approved by the credit card issuer a credit card is issued.
Once issued, a credit card can be used to buy things at merchants accepting that card.
As soon as a purchase is made, the card user agrees to pay the card issuer.
The card holder signs a receipt with a record of the card details and indicating the sum to be paid. Also there is a much easier way that the card user indicates consent to pay. This method is by entering a personal credentials number. In general this is called the PIN.
A verbal authorization system too is accepted now and this is known as a card holder not present or CNP.
When dealing with credit cards the merchant has to validate that the card is valid and that the customer has sufficient credit to cover the purchase.
Each month the credit card user receives a announcement indicating the purchases undertaken with the card and the outstanding fees, and the entire amount owed.
Most credit card issuers disregard interest charges if the balance is paid in full each month.
If the balance is not paid in full the card issuer charges and interest on the amount owed. Read more Maler Koebenhavn
More than other systems of payment, a credit card transaction is often more secured for merchants.
Credit card payment is safer for the merchant for the reason that the issuing bank commits to pay the moment the transaction is authorized. This commitment does not change even if the consumer defaults on the credit card sum.
The client the card issuing bank or the financial institution or other organization that issued the credit card to the holder, the merchant, and the gaining bank are some of the parties involved in using and issuing a credit card.
To avert counterfeiting most credit cards have a water mark that will flame under ultraviolet light. Read more Pladebukning
