All credit cards

Credit card is a small-sized card made of plastic. It contains a scanned image of the user and bears an identification number. The user need not make immediate payment to his creditor . Debit card is different from credit card it withdraws cash immediately from the users account.

There are many brands of credit cards such as Visa, Master Card, etc. All credit cards have some common features. Credit facility is issued to the user only after verifying the authenticity of the card . Usually after providing the credit facility to the user, the creditor issues a receipt to the user that contains details about the amount payable and other personal details. There are many parties involved to issue a card to an applicant .

Cardholder is the person who processes the credit card. These cards are issued by the banks who are also involved in other activities like collecting the cash, bearing the risks of the cardholders such as theft etc. The merchants render services or products to the card bearers and accept payments from them. Acquiring banks are those banks who accept the payment from the cardholders on behalf of merchants . Sometimes these banks delegate the services to the sales organization and hence they receive payments on behalf of organization.

All credit cards are verified by the merchant through the means of electronic verification whether the card is valid or not. He can also access whether the user has sufficient balance to borrow .

The procedure for obtaining a credit card is usually lengthy. The applicant before being issued a credit card is sanctioned a limit for usage . He cannot make use of the credit card if the balance of the card exceeds the specified limit .

The credit card user is usually receives a statement on monthly basis to his residence. He must clear his dues before the due date or else he should pay a certain amount of penalty to his creditor.

Today mostly all credit card industries are offering to their users attractive offers due to the intense competition in the market.

justify.There are two types of credit cards . Secured credit card and unsecured credit card . Under secured credit card, the cardholders deposits 100 percent or 200 percent of the total credit limit sanctioned .

But the terms and conditions differ from card to card. All credit cards do not bear the same interest rate . The grace period also varies from card to card . When the due date of payment is over, there are some grace days allotted to the user . Grace period is the period before the interest or penalty charges are implied .

If a card is stolen, usually in the Nordic countries the payment is made by the bank after verifying the identity of the user. The users in these countries are already issued with a Nordic ID card as a security . Such cards contain information such as users PAN number, TIN number, driving license number etc.