Credit Card | History of Credit Card | Definition of Credit Card - Everything

CREDIT CARD

Topic covered

•Definitions            

•Size of Credit Card

•History

•Function of Credit card

•Types of Credit card      

•Benefits of Credit Card

•Features of Credit Card

Definitions:

A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for the amounts plus the other agreed charges.

A credit card is different from a charge card, which requires the balance to be repaid in full each month.

A credit card also differs from a cash card, which can be used like currency by the owner of the card.

A credit card differs from a charge card also in that a credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date.

Size of Credit Card

The size of most credit cards is 85.60 mm × 53.98 mm (​3 3⁄8 × ​2 1⁄8  inches) and rounded corners with a radius of 2.88–3.48 mm, conforming to the ISO/IEC 7810 ID-1 standard, the same size as ATM cards and other payment cards, such as debit cards.

 

Function of Credit Card

Following below are the functions of the Credit card- 

Economy in the use of money

Easy exchange and remittance

Promotion of trade especially foreign trade

Expansion of bank credit

Benefits to consumers

Credit to the government sector

Stability

Benefits of a Credit Card

Here are some benefits of Credit card:-

Credit Score

Secure Alternative to Cash

Emergency Cash

Increased Purchase Power

Interest-Free Credit

Grace Period

Reward Points

Welcome Benefits

Tracking purchases

Features of a Credit Card

Cash Withdrawal

SMS Alert

Customer Services

Balance Transfer

Equated Monthly Installments

Add-on Credit Card

Utility Bill Payment

Worldwide Acceptance

Draft or Cheque Issuance

Online Accessibility