Credit card

IMPORTANCE AND USAGE OF CREDIT CARDS

1. credit card

2. content Introduction Credit card Eligibility for getting card Components of credit card Types Advantages of credit cards Disadvantages of credit cards Safety tips Conclusion

3. what is credit cards? Pre-approved credit which can be used for the purchase of items now and payment of them later.

4. credit card Credit Card Also known as plastic money, it is a means of deferred payment. A credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them.   T he credit card is invented in 1887 by Edward Bellamy.

5. Eligibility for getting the card Person should have a savings current account in the bank. His assets and liabilities on a particular date are reported to bank. A statement of annual or monthly income. He is considered credit worthy up to certain limit depending upon his income, assets and expenditure.

6. Name of the customer Account number 16-digit card number Validity date The VISA logo Contactless chip Name of the issuing bank Signature period Magnetic strip PIN

7. 1. The Standard Credit Card: These are general purpose credit cards with revolving balance. 2. Reward Credit Cards: These cards offer several rewards programs in the form of cash, points or discounts, and are intended to influence your spending. 3. Secured Credit Cards: Also known as pay-as-you-go cards, their primary purpose is to give people with bad credit history a chance to re-establish credit. 4.Charge Credit Cards: Charge cards do not have a present spending limit and balances must be paid in full at the end of each month. Types of credit cards

8. Advantages of credit cards To Cardholders : Simple, convenient and can be substituted for cash. Convenient method of payment. He need not approach a bank for taking credit. Credit cards issued by leading banks are acceptable in many countries. Holders can withdraw cash from any branch of major banks worldwide. Issuer of card provides 24 hrs customer helpline available across the world in case of any emergency.

9. To Merchants/ Shopkeepers : Guaranteed payment. Lessens the security risk of holding the cash. Overseas visitors may purchase more, providing new market for retailer. To credit card companies/ Banks : Source of revenue - Joining fee - card renew fee - services charges from retailers - Interest charged to customer

10. Disadvantages of credit card To cardholders : - Loss or stealing of card To Merchants/ Shopkeepers : - Retailers are required to pay a certain fee and service charges at an agreed percentage of their credit card sales. To credit card companies : Risk of bad debt Risk of fraud

11. Credit card usage 2.8 billion credit cards in use worldwide. 1.06 billion credit cards in use in the United States of America. 60% of Americans believe the US will soon become a cashless society . In June 2020, there were over 323 thousand ATM transactions and 125 million point-of sale transactions made via credit card in India. The credit card transactions had decreased significantly in the previous three months due to the COVID-19 pandemic.

12. Safety tips Sign card with signature. Do not leave cards lying around. Close unused accounts in writing and by phone, then cut up the card. Do not give out account number unless making purchases. Keep a list of all cards, account numbers, and phone numbers separate from cards. Report lost or stolen cards promptly.

13. conclusion