Now a days the fastest mode of payment is e-money. People find it risky and inconvenient to carry cash with them when they have to go for a big purchase. If we talk of mode of payment then it can be anything like debit card, credit card or charge card. Credit card and debit card both work in different fashion.
A credit card is a mode of payment issued to users of the system. A credit card is different from a debit card in that it does not remove money from the user’s account after every transaction. In the case of credit cards, the issuer lends money to the consumer. Whenever the customer has to pay at any shop he can do payment with credit card.
Credit card is also called as plastic cards. Credit card holder has a limit to within which he can purchase goods. If the card has met its limits then you cannot make more purchases.
While doing payment of goods and services the merchant communicates with the concerned bank to check the card whether it is valid or not. Then he checks the amount available in card is sufficient for payment or not. Then he takes signature of the customer and do further transactions regarding payment.
A plastic card bearing an account number assigned to a cardholder with a credit limit that can be used to purchase goods and services and to obtain cash disbursements on credit, for which a cardholder is subsequently billed by an issuer for repayment of the credit extended at once or on an installment basis.
Credit cards are of much use. People feel safe while using it. Using credit cards mean you are free from counting your cash all the time when you are out. It also reduces headache when you desire to purchase any item and you run short of cash. In all sense using credit cards are good all the time.