What is a Credit Card?

by David Smythe

For many of us, ordinary people, going shopping is a pleasure. Moreover at the end of it, no matter if a woman or a man goes shopping, we all enjoy the benefits of electronic payment because it has a lot of advantages. Cash is less and less carried inside our wallets nowadays and each part of the world has modernized the payment system because of the development of the transaction business through plastic money.

Cash is now considered “old news” in the field and that is why most of the people have credit cards. Transactions, meaning payments, are concluded with the help of that useful piece of plastic in most countries on most continents. The small card, which we call credit card, has replaced the cash in your wallet, as well as the stress of carrying it around. Plastic card means the permission an individual is granted to borrow money from the company which has supplied it, to pay for his/her transactions.

As soon as you charge something, the bank or financial institution will send a bill to the consumer for transactions or purchases done. You as a consumer have options to either pay the full amount of your bill or pay a partial amount but unless you pay the amount in full, some interest rates will be charged to you according to the agreement you signed earlier.

When you have this powerful plastic card, you can pay for purchases and transactions without hassles. Shopping in malls and department stores and even online shopping is made much easier because to make a payment, the cashier at the checkout counter will just have to swipe your card into a special processing machine. If you are shopping online, you just need to enter your details like account number and expiry date on the merchant’s website. After it is verified, your purchases and transactions are already paid.

Eight main credit card organizations are operating to cater to the needs of customers worldwide. This includes the American Express, Discover, Citi, Diners Club, JCB, VISA and MasterCard. Of the eight organizations, the most popularly used worldwide are Master card and VISA. In addition, there are hundreds of establishments who are also credit card suppliers but they have tie-ups with various banks and organizations to issue cards on their behalf.

If you need a credit card, compare and decide which company suits your needs best and go for it. Complete the application forms and then sign the agreement, meaning the contract between you and the bank, containing the rules to be applied in this activity. If you get a positive answer, that means that your credit electronically encoded card is on its way.

You can then use your plastic money to make payments when you go shopping in stores or order items online. However, you can only use your cards if the particular merchant or shop you are going to buy something from accepts transactions through it.

There is another advantage for the use of credit cards. It is that you can get cash in your wallet through the credit card, in case you need it. All you have to do is use an ATM machine. There is no problem in doing it since they can be found everywhere.

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