Master card credit cards
A credit card is a small plastic card in which name with or without picture and signature at the back of the card for identification of the user, are mentioned.
It is issued to the user by distinct banks on the condition of some rules and regulations like a certain percent of interest for forwarding the balance for next payment by the consumer. Basically, its a type of a retail transaction system in which a consumer can pay the certain amount at one time and can revolve the remaining balance at the cost of some interest charged by the issuer or the bank. A credit card is different from a debit card in terms of settlement of amount of purchase. Like, the consumer need not to pay the full amount at one go.
Depending on ones convenience, one can carry forward the amount for the next settlement. On the other hand, in case of debit card, the money gets deducted from the users account after every transaction.
It is believed that the use of such cards was first started in the US at around 1920s, and the use flourished during World War II with a rapid pace.
According to experts, majority of U.S. citizens have at least one credit card -- and usually two or three. From this it there would be no exaggeration to say that credit cards have become important sources of day to day living. But if you want to have a big purchase, you really need a major credit card with an excellent balance in it. Most of the credit cards have almost same numbering scheme in which the cards starting
numbers (Six digits for Master Card and Visa Cards) determine the bank to which it belongs. These numbers are generally known as bank identification number. And rest of the ten digits are the personal account number of the individual. It also have the date of issue of the card with the expiration date and security codes.
Some benefits of credit cards over cash/check
Today millions of American and British consumers prefers to pay by credit card instead of carrying cash with them. There are several reasons for this change which can be summarized as follows :
1. First reason, it is because of the convenience at the time of payment. It eases them to handle transactions without having headaches of carrying cash or going to an ATM.
2. Second, it also let them avoid the time spent for digging their pockets for counting the money and sorting out the exact change.
3. With the increasing convenience of this mode of payment, users are opting to use the service as most of the businesses now accept such kind of payment. Consumers, even do not hesitate to give a certain percentage of extra charge on this type of payment as they find it quite worthy to use cards instead of cash or check.
4. Moreover, Cash or checkbooks are difficult to carry as compared to cards and are more prone to be pick-pocketed or lost.
5. Card payment also works as an assurance for the business people who needs some surety of payment and with checks, the time taken to clear it from the bank, doest not suit to them as it does not reach them on time.
DIFFERENT COSTS PAID BY THE USER FOR A CREDIT CARD
Operating costs:- All the steps involved from printing the plastic cards to providing the services to the customers are charged as an operating cost.
Extra charge on stolen card :-If a card is stolen, user is charged with a certain amount of money to re-issue the card.
Interest on outstanding balance :- A user has to pay a particular amount of interest if he/she does not pay the full amount at one time. And the interest will be charged on the actual amount.
Extra charge on crossing the purchasing limit of a credit card:- If a user crosses the limit of purchasing of a card (either intentionally of unknowingly), a certain percent of interest will be charged to the user.
Membership fee:- Users also pay some amount as a member of the credit card. Cash Removal by using the card:- If user use a card for withdrawing money from the ATM, then again they have to pay a good interest on this also. History It was first in 1887 when Edward Bellamy showed the use of a card in his novel and slowly and gradually, 1920s, people started using these cards to sell fuel to the automobile companies. Then in 1958,Bank of America card created the Bank Americard which later on evolved into Visa system. Now the need of a card was also felt outside the USA and in 1966, the UK launched its credit card.
Different Credit Card Networks
American Express Bankcard China UnionPay Diners Club Discover JCB MasterCard VISA Now there is no denying the fact that credit card has become an indispensable part of everybody's life. From buying a book to a flat,it's use can be seen with so much of faith and people are trying hard to get at least one to make their lives easier to live. They find a card an attractive,easy to carry, affordable and see it a \'Must Have\'commodity in furnishing their life style. And not only GenX is looking towards it,but also, what we call them- Older people, donot like to remain behind in this age of high technology with so much of advancement. But one thing should be kept in mind that excessive use of anything can prove fatal and therefore it is our own responsibilty to have a good control over the usage of credit cards with only must done purchasing from them.
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