How credit cards work?, Other Subject

How credit cards work?

Credit cards are issued after an account has been accepted by the credit supplier, after which cardholders can use it to formulate purchases at merchants accepting that card.

When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder indicates his/her consent to pay, by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a Personal identification number PIN). Also, many merchants now agree to verbal authorizations via phone and electronic approval using the Internet, known as a 'Card/Cardholder Not Present' (CNP) transaction.Electronic confirmation systems let merchants to confirm that the card is applicable and the credit card customer has enough credit to cover the pay for in a few seconds, allowing the confirmation to occur at time of obtain. The confirmation is performed using a credit card payment terminal or Point of Sale (POS) system with a communications relation to the merchant's acquiring bank. Data from the card is obtained from a magnetic stripe or chip on the card; the later system is in the United Kingdom(UK) and Ireland commonly known as Chip and PIN, but is more strictly an EMV card.additional variations of confirmation systems are used by eCommerce merchants to conclude if the user's account is applicable and able to recognize the charge. These will usually involve the cardholder given that extra information, such as the security code printed on the flipside of the card, or the address of the cardholder.

every month, the credit card user is sent a statement representative the purchases undertaken with the card, any exceptional fees, and the sum amount owed. After getting the declaration, the cardholder may argument any charges that he or she thinks are wrong (see Fair Credit Billing Act for fine points of the US regulations). or else, the cardholder must pay a definite minimum amount of the bill by a due date, or may select to pay a higher amount up to the whole amount payable. The credit supplier charges attention on the amount payable (typically at a much high rate than most other forms of debit). a number of financial institutions can organize for routine payments to be deducted from the user's bank accounts, thus avoiding late payment in total as long as the cardholder has enough funds.

Posted Date: 10/12/2012 9:28:15 AM | Location : United States







Related Discussions:- How credit cards work?, Assignment Help, Ask Question on How credit cards work?, Get Answer, Expert's Help, How credit cards work? Discussions

Write discussion on How credit cards work?
Your posts are moderated
Related Questions

Problem: (a) "Schools do not have to be in geographic vicinity to create networks to achieve synergy for transformation" (Brian Caldwell). Critically analyse the extent to wh

A husband suspects an online affair John and Sally "meet" on a bulletin board provided by a commercial network operator and then begin corresponding through e-mail. The operator h

Security key In early 2007, PayPal initiate an optional security key as an supplementary safety measure against fraud. A user account attached to a security key has a customize

In this essay, explore how the passage of time is perceived by humans. Is this a top-down process, a bottom-up process, or both? Is this sense innate, or do we rely on environmenta

The NPV decision rules says that an investment with a NIL Net Present Value should be accepted.WHY?Example

Language Spanish is the most commonly used language in many Latin American countries. Portuguese is the main language of Brazil, and even French is spoken in some small parts

I Have to do a 5 minute presentation on Subculture in policing. I just don''t know how to start it. What should I talk about?

Use the table below to answer the following questions. a) Use the information in the Table above, what is the throughput time for the process, assuming that the Call Cente

Digital Signatures Digital signatures are based on a grouping of the conventional idea of data hashing with public key-based encryption. Most hash functions are like to encrypt