Credit Cards Now Are of Various Types With Different Fees
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Credit cards now are of various types with different fees, interest rates and rewarding programs. When applying for
a credit card, it is important to learn of their diverse types to know the one best suited to their lifestyle and financial
status. Different types of credit cards available by banks and other companies/organizations are briefly described
below.
Standard Credit Card: This is the most commonly used. One is allowed to use money up to a certain limit. The
account holder has to top up the amount once the level of the balance goes down. An outstanding balance gets apenalty charge.
Premium Credit Card: This has a much higher bank account and fees. Incentives are offered in this over and
above that in a standard card. Credit card holders are offered travel incentives, reward points, cask back and other
rewards on the use of this card. This is also called the Reward Credit Card. Some examples are: airlines frequent
flier credit card, cash back credit card, automobile manufacturers' rewards credit card. Platinum and Gold,
MasterCard and Visa card fall into this category.
Secured Credit Card: People without credit history or with tarnished credit can avail this card. A security deposit
is required amounting to the same as the credit limit. Revolving balance is required according to the 'buying and
selling' done.
Limited Purpose Credit Card: There is limitation to its use and is to be used only for particular applications. This
is used for establishing small credits such as gas credits and credit at departmental stores. Minimal charges are
levied.
Charge Credit Card: This requires the card holder to make full payment of the balance every month and therefore
there is no limit to credit. Because of the spending flexibility, the card holder is expected to have a higher income
level and high credit score. Penalty is incurred if full payment of the balance is not done in time.
Specialty Credit Card: is used for business purposes enabling businessmen to keep their businesses transactions
separately in a convenient way. Charge cards and standard cards are available for this. Also, students enrolled in an
accredited 4-year college/university course can avail this benefit.
Prepaid Credit Card: Here, money is loaded by the card holder on to the card. It is like a debit card except that it is
not tied up with a bank account.
Credit Card Issuing Banks in India
If you are planning to get a credit, the first thing you should know is which are the credit card issuing banks in India.
There are several banks which provide credit cards in India. Given below is a list of Credit Card service providing
banks along with the various types of Credit Cards they offer.
Indian Banks offering Credit Card facility to its customers are:
Axis Bank
Bank of Baroda
Canara Bank
Corporation Bank
HDFC
ICICI Bank
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Indian Overseas Bank
Kotak Mahindra.
Punjab National Bank
SBI
Syndicate Bank
Union Bank of India
Vijaya Bank
Major Foreign Banks which offer Credit Card service in India are:
ABN Amro
American Express
ANZ
Barclays Bank
Citibank
Diners Club
HSBC
Standard Chartered
You should decide upon which credit card to go for only after doing a thorough research on different credit cards,
services offered by various banks to their credit card holders, interest rates etc... Choose the credit card which best
suits your need, has low interest rates and excellent reward schemes. Make sure you are well aware of any hidden
charge.
Advantages and Disadvantages of Credit Cards
Advantages Disadvantages
Convenience--Credit cards can save you time and
trouble--no searching for an ATM or keeping cash on-
hand.
Overuse--Revolving credit makes it easy to spend
beyond your means.
Record keeping--Credit card statements can help you
track your expenses. Some cards even provide year-end
summaries that really help out at tax time.
Paperwork--You'll need to save your receipts and check
them against your statement each month. This is a good
way to ensure that you haven't been overcharged.
Low-cost loans--You can use revolving credit to save
today (e.g., at a one-day sale), when available cash is a
High-cost fees--Your purchase will suddenly become
much more expensive if you carry a balance or miss a
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Who Invented Credit Cards?
A credit card is an automatic way of offering credit to a consumer.
Credit is a method of selling goods or services without the buyer having cash in hand. A credit card is only an
automatic way of offering credit to a consumer. Today, every credit card carries an identifying number that speeds
shopping transactions. Imagine what a credit purchase would be like without it, the sales person would have to
record your identity, billing address, and terms of repayment.
According to Encyclopedia Britannica, "the use of credit cards originated in the United States during the 1920s,
when individual firms, such as oil companies and hotel chains, began issuing them to customers." However,
references to credit cards have been made as far back as 1890 in Europe. Early credit cards involved sales directly
between the merchant offering the credit and credit card, and that merchant's customer. Around 1938, companies
started to accept each other's cards. Today, credit cards allow you to make purchases with countless third parties.
The Shape of Credit Cards
Credit cards were not always been made of plastic. There have been credit tokens made from metal coins, metal
plates, and celluloid, metal, fiber, paper, and now mostly plastic cards.
First Bank Credit Card
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The inventor of the first bank issued credit card was John Biggins of the Flatbush National Bank of Brooklyn in
New York. In 1946, Biggins invented the "Charge-It" program between bank customers and local merchants.
Merchants could deposit sales slips into the bank and the bank billed the customer who used the card.
Diners Club Credit Card
In 1950, the Diners Club issued their credit card in the United States. The Diners Club credit card was invented byDiners' Club founder Frank McNamara and it was intended to pay restaurant bills. A customer could eat without
cash at any restaurant that would accept Diners' Club credit cards. Diners' Club would pay the restaurant and the
credit card holder would repay Diners' Club. The Diners Club card was at first technically a charge card rather than
a credit card since the customer had to repay the entire amount when billed by Diners Club.
The concept of using a card for purchases was described in 1887 byEdward Bellamyin his utopian novelLooking
Backward. Bellamy used the term credit cardeleven times in this novel, although this referred to a card for spending
acitizen's dividendrather than borrowing.[4]
The modern credit card was the successor of a variety of merchant credit schemes. It was first used in the 1940s, in
the United States, specifically to sellfuelto a growing number ofautomobileowners. In 1938 several companies
started to accept each other's cards.Western Unionhad begun issuing charge cards to its frequent customers in 1921.Some charge cards were printed on paper card stock, but were easily counterfeited.
The Charga-Plate, developed in 1928, was an early predecessor to the credit card and used in the U.S. from the
1930s to the late 1950s. It was a 2 in 1 in rectangle of sheet metal related to Addressographand militarydog
tagsystems. It was embossed with the customer's name, city and state. It held a small paper card for a signature. In
recording a purchase, the plate was laid into a recess in the imprinter, with a paper "charge slip" positioned on top of
it. The record of the transaction included an impression of the embossed information, made by the imprinter pressing
aninked ribbonagainst the charge slip.[5]Charga-Plate was a trademark of Farrington Manufacturing Co. Charga-
Plates were issued by large-scale merchants to their regular customers, much like department store credit cards of
today. In some cases, the plates were kept in the issuing store rather than held by customers. When an authorized
user made a purchase, a clerk retrieved the plate from the store's files and then processed the purchase. Charga-
Plates speeded back-office bookkeeping that was done manually in paper ledgers in each store, before computers.
In 1934, American Airlines and the Air Transport Association simplified the process even more with the advent of
theAir Travel Card.[6]They created a numbering scheme that identified the issuer of card as well as the customer
account. This is the reason the modernUATPcards still start with the number 1. With an Air Travel Card,
passengers could "buy now, and pay later" for a ticket against their credit and receive a fifteen percent discount at
any of the accepting airlines. By the 1940s, all of the major domestic airlines offered Air Travel Cards that could be
used on 17 different airlines. By 1941 about half of the airlines' revenues came through the Air Travel Card
agreement. The airlines had also started offering installment plans to lure new travelers into the air. In October 1948,
the Air Travel Card became the first inter-nationally valid charge card within all members of the International Air
Transport Association.[7]
The concept of customers paying different merchants using the same card was expanded in 1950 by Ralph SchneiderandFrank McNamara, founders ofDiners Club, to consolidate multiple cards. The Diners Club, which was created
partially through a merger with Dine and Sign, produced the first "general purpose"charge card, and required the
entire bill to be paid with each statement. That was followed byCarte Blancheand in 1958 byAmerican Express
which created a worldwide credit card network (although these were initially charge cards that acquired credit card
features after BankAmericard demonstrated the feasibility of the concept).
However, until 1958, no one had been able to create a working revolving creditfinancial instrument issued by a
third-party bank that was generally accepted by a large number of merchants (as opposed to merchant-issued
http://en.wikipedia.org/wiki/Edward_Bellamyhttp://en.wikipedia.org/wiki/Edward_Bellamyhttp://en.wikipedia.org/wiki/Edward_Bellamyhttp://en.wikipedia.org/wiki/Looking_Backwardhttp://en.wikipedia.org/wiki/Looking_Backwardhttp://en.wikipedia.org/wiki/Looking_Backwardhttp://en.wikipedia.org/wiki/Looking_Backwardhttp://en.wikipedia.org/wiki/Citizen%27s_dividendhttp://en.wikipedia.org/wiki/Citizen%27s_dividendhttp://en.wikipedia.org/wiki/Citizen%27s_dividendhttp://en.wikipedia.org/wiki/Credit_card#cite_note-4http://en.wikipedia.org/wiki/Credit_card#cite_note-4http://en.wikipedia.org/wiki/Credit_card#cite_note-4http://en.wikipedia.org/wiki/Fuelhttp://en.wikipedia.org/wiki/Fuelhttp://en.wikipedia.org/wiki/Fuelhttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Western_Unionhttp://en.wikipedia.org/wiki/Western_Unionhttp://en.wikipedia.org/wiki/Western_Unionhttp://en.wikipedia.org/wiki/Addressographhttp://en.wikipedia.org/wiki/Addressographhttp://en.wikipedia.org/wiki/Addressographhttp://en.wikipedia.org/wiki/Dog_tag_(identifier)http://en.wikipedia.org/wiki/Dog_tag_(identifier)http://en.wikipedia.org/wiki/Dog_tag_(identifier)http://en.wikipedia.org/wiki/Dog_tag_(identifier)http://en.wikipedia.org/wiki/Typewriter_ribbonhttp://en.wikipedia.org/wiki/Typewriter_ribbonhttp://en.wikipedia.org/wiki/Typewriter_ribbonhttp://en.wikipedia.org/wiki/Credit_card#cite_note-5http://en.wikipedia.org/wiki/Credit_card#cite_note-5http://en.wikipedia.org/wiki/Credit_card#cite_note-5http://en.wikipedia.org/wiki/Universal_Air_Travel_Planhttp://en.wikipedia.org/wiki/Universal_Air_Travel_Planhttp://en.wikipedia.org/wiki/Credit_card#cite_note-6http://en.wikipedia.org/wiki/Credit_card#cite_note-6http://en.wikipedia.org/wiki/Credit_card#cite_note-6http://en.wikipedia.org/wiki/Universal_Air_Travel_Planhttp://en.wikipedia.org/wiki/Universal_Air_Travel_Planhttp://en.wikipedia.org/wiki/Universal_Air_Travel_Planhttp://en.wikipedia.org/wiki/International_Air_Transport_Associationhttp://en.wikipedia.org/wiki/International_Air_Transport_Associationhttp://en.wikipedia.org/wiki/International_Air_Transport_Associationhttp://en.wikipedia.org/wiki/Credit_card#cite_note-7http://en.wikipedia.org/wiki/Credit_card#cite_note-7http://en.wikipedia.org/wiki/Credit_card#cite_note-7http://en.wikipedia.org/wiki/Frank_X._McNamarahttp://en.wikipedia.org/wiki/Frank_X._McNamarahttp://en.wikipedia.org/wiki/Frank_X._McNamarahttp://en.wikipedia.org/wiki/Diners_Clubhttp://en.wikipedia.org/wiki/Diners_Clubhttp://en.wikipedia.org/wiki/Diners_Clubhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Carte_Blanche_(credit_card)#Carte_Blanchehttp://en.wikipedia.org/wiki/Carte_Blanche_(credit_card)#Carte_Blanchehttp://en.wikipedia.org/wiki/Carte_Blanche_(credit_card)#Carte_Blanchehttp://en.wikipedia.org/wiki/American_Expresshttp://en.wikipedia.org/wiki/American_Expresshttp://en.wikipedia.org/wiki/American_Expresshttp://en.wikipedia.org/wiki/American_Expresshttp://en.wikipedia.org/wiki/Carte_Blanche_(credit_card)#Carte_Blanchehttp://en.wikipedia.org/wiki/Charge_cardhttp://en.wikipedia.org/wiki/Diners_Clubhttp://en.wikipedia.org/wiki/Frank_X._McNamarahttp://en.wikipedia.org/wiki/Credit_card#cite_note-7http://en.wikipedia.org/wiki/International_Air_Transport_Associationhttp://en.wikipedia.org/wiki/International_Air_Transport_Associationhttp://en.wikipedia.org/wiki/Universal_Air_Travel_Planhttp://en.wikipedia.org/wiki/Credit_card#cite_note-6http://en.wikipedia.org/wiki/Universal_Air_Travel_Planhttp://en.wikipedia.org/wiki/Credit_card#cite_note-5http://en.wikipedia.org/wiki/Typewriter_ribbonhttp://en.wikipedia.org/wiki/Dog_tag_(identifier)http://en.wikipedia.org/wiki/Dog_tag_(identifier)http://en.wikipedia.org/wiki/Addressographhttp://en.wikipedia.org/wiki/Western_Unionhttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Fuelhttp://en.wikipedia.org/wiki/Credit_card#cite_note-4http://en.wikipedia.org/wiki/Citizen%27s_dividendhttp://en.wikipedia.org/wiki/Looking_Backwardhttp://en.wikipedia.org/wiki/Looking_Backwardhttp://en.wikipedia.org/wiki/Edward_Bellamy -
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revolving cards accepted by only a few merchants). A dozen experiments by small American banks had been
attempted (and had failed). In September 1958,Bank of Americalaunched theBankAmericardinFresno, California.
BankAmericard became the first successful recognizably modern credit card (although it underwent a troubled
gestation during which its creator resigned), and with its overseas affiliates, eventually evolved into theVisasystem.
In 1966, the ancestor ofMasterCardwas born when a group of banks established Master Charge to compete with
BankAmericard; it received a significant boost whenCitibankmerged its proprietaryEverything Card(launched in
1967) into Master Charge in 1969.
Early credit cards in the U.S., of which BankAmericard was the most prominent example, were mass-produced and
mass mailed unsolicited to bank customers who were thought to be good credit risks. But, "They have been mailed
off to unemployables, drunks, narcotics addicts and to compulsive debtors, a process President Johnson's Special
Assistant Betty Furness found very like 'giving sugar to diabetics'."[8]These mass mailings were known as "drops" in
banking terminology, and were outlawed in 1970 due to the financial chaos they caused, but not before 100 million
credit cards had been dropped into the U.S. population. After 1970, only credit card applications could be sent
unsolicited in mass mailings.
The fractured nature of the U.S. banking system under theGlassSteagall Actmeant that credit cards became an
effective way for those who were traveling around the country to move their credit to places where they could not
directly use their banking facilities. In 1966Barclaycardin the UK launched the first credit card outside of the U.S.
There are now countless variations on the basic concept of revolving credit for individuals (as issued by banks and
honored by a network of financial institutions), including organization-branded credit cards, corporate-user credit
cards, store cards and so on.
Although credit cards reached very high adoption levels in the US, Canada and the UK in the mid twentieth century,
many cultures were more cash-oriented, or developed alternative forms of cash-less payments, such asCarte bleue
or theEurocard(Germany, France, Switzerland, and others). In these places, adoption of credit cards was initially
much slower. It took until the 1990s to reach anything like the percentage market-penetration levels achieved in the
US, Canada, or UK. In some countries, acceptance still remains poor as the use of a credit card system depends on
the banking system being perceived as reliable.Japanremains a very cash oriented society, with credit card adoption
being limited to only the largest of merchants, although an alternative system based on RFIDs inside cellphones has
seen some acceptance. Because of strict regulations regarding banking system overdrafts, some countries, France in
particular, were much faster to develop and adopt chip-based credit cards which are now seen as major anti-fraud
credit devices.Debit cardsandonline bankingare used more widely than credit cards in some countries.
The design of the credit card itself has become a major selling point in recent years. The value of the card to the
issuer is often related to the customer's usage of the card, or to the customer's financial worth. This has led to the rise
of Co-Brand andAffinitycards, where the card design is related to the "affinity" (a university or professional
society, for example) leading to higher card usage. In most cases a percentage of the value of the card is returned to
the affinity group.
American Express issued their first credit card in 1958. Bank of America issued the BankAmericard (now Visa)
bank credit card later in 1958.
The Popularity of Credit Cards
Credit cards were first promoted to traveling salesmen (more common in that era) for use on the road. By the early
1960s, more companies offered credit cards, advertising them as a time-saving device rather than a form of credit.
American Express and MasterCard became huge successes overnight.
http://en.wikipedia.org/wiki/Bank_of_Americahttp://en.wikipedia.org/wiki/Bank_of_Americahttp://en.wikipedia.org/wiki/Bank_of_Americahttp://en.wikipedia.org/wiki/BankAmericardhttp://en.wikipedia.org/wiki/BankAmericardhttp://en.wikipedia.org/wiki/BankAmericardhttp://en.wikipedia.org/wiki/Fresno,_Californiahttp://en.wikipedia.org/wiki/Fresno,_Californiahttp://en.wikipedia.org/wiki/Fresno,_Californiahttp://en.wikipedia.org/wiki/VISA_(credit_card)http://en.wikipedia.org/wiki/VISA_(credit_card)http://en.wikipedia.org/wiki/VISA_(credit_card)http://en.wikipedia.org/wiki/MasterCardhttp://en.wikipedia.org/wiki/MasterCardhttp://en.wikipedia.org/wiki/MasterCardhttp://en.wikipedia.org/wiki/Citibankhttp://en.wikipedia.org/wiki/Citibankhttp://en.wikipedia.org/wiki/Citibankhttp://en.wikipedia.org/wiki/Everything_Cardhttp://en.wikipedia.org/wiki/Everything_Cardhttp://en.wikipedia.org/wiki/Everything_Cardhttp://en.wikipedia.org/wiki/Credit_card#cite_note-8http://en.wikipedia.org/wiki/Credit_card#cite_note-8http://en.wikipedia.org/wiki/Credit_card#cite_note-8http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Barclaycardhttp://en.wikipedia.org/wiki/Barclaycardhttp://en.wikipedia.org/wiki/Barclaycardhttp://en.wikipedia.org/wiki/Carte_Bleuehttp://en.wikipedia.org/wiki/Carte_Bleuehttp://en.wikipedia.org/wiki/Carte_Bleuehttp://en.wikipedia.org/wiki/Eurocard_(payment_card)http://en.wikipedia.org/wiki/Eurocard_(payment_card)http://en.wikipedia.org/wiki/Eurocard_(payment_card)http://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Affinity_credit_card_schemehttp://en.wikipedia.org/wiki/Affinity_credit_card_schemehttp://en.wikipedia.org/wiki/Affinity_credit_card_schemehttp://en.wikipedia.org/wiki/Affinity_credit_card_schemehttp://en.wikipedia.org/wiki/Online_bankinghttp://en.wikipedia.org/wiki/Debit_cardhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Eurocard_(payment_card)http://en.wikipedia.org/wiki/Carte_Bleuehttp://en.wikipedia.org/wiki/Barclaycardhttp://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Acthttp://en.wikipedia.org/wiki/Credit_card#cite_note-8http://en.wikipedia.org/wiki/Everything_Cardhttp://en.wikipedia.org/wiki/Citibankhttp://en.wikipedia.org/wiki/MasterCardhttp://en.wikipedia.org/wiki/VISA_(credit_card)http://en.wikipedia.org/wiki/Fresno,_Californiahttp://en.wikipedia.org/wiki/BankAmericardhttp://en.wikipedia.org/wiki/Bank_of_America -
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By the mid-'70s, the U.S. Congress begin regulating the credit card industry by banning such practices as the mass
mailing of active credit cards to those who had not requested them. However, not all regulations have been as
consumer friendly. In 1996, the U.S. Supreme Court in Smiley vs. Citibank lifted restrictions on the amount of late
penalty fees a credit card company could charge. Deregulation has also allowed very high interest rates to be
charged.
PARTICULARS DISPLAYED ON THE CREDIT CARDS
Every credit card bears the following particulars:
1. NAME OF THE CUSTOMER: Every card displays the name of customer. It should be spelled correctly. In case,
it does not, the customer can contact the customer service cell/helpline and get the necessary correction done. This
facility is provided free of cost by the bank.
2. 16-DIGIT CARD NUMBER : A unique 16 digit number is allotted to every customer/ cardholder.
3. VALIDITY DATE : The card mentions the period through which it is valid. The card is usually valid from the it
is received by the customer unto and including the last day of the month indicated on the card. After the card has to
be renewed.
4. THE VISA HOLOGRAM AND THE VISA LOGO: The hologram and the logo ensure that all the establishments
through out the world displaying the visa logo will accept the card.
5. NAME OF THE ISSUING BANK: The card indicates on the top the name of the issuing bank.
6. SIGNATURE PANEL: The back of the card contains the signature panel. The customer must put his signature on
the signature panel to prevent misuse by any other person. This identifies the card holder. Signature on the panel
would imply that card holder has given his consent to abide by the terms and conditions governing the use of thecredit card. The card is valid is only if signed.
7. MAGNETIC STRIP: The black magnetic strip contains important information in encoded from and needs special
handling. The card should not be kept in an area where there is a continuous magnetic field. It should not be left on
the top the television. Set or near any electronic appliance. The card should be kept away from heat and direct sun
light.
8. PIN (PERSONAL IDENTIFICATION NUMBER): Each card holder is issued a password or pin to enable use of
the card for accessing his/her card account on the ATM and internet and also for availing any privilege, benefit or
service that may be offered by bank on the card. The pin is communicated to the cardholder entirely at his/her risk
who shall not disclose the pin to any person and shall take all possible care to avoid its discovery by any person. The
card holder shall be liable for all transactions made with the use of the pin whether with or without the knowledge ofthe cardholder.
WHO CAN BE A CREDIT CARD HOLDER
The general criterion applied is a person spending capacity and not merely his income and his wealth. The other
criterion is the worthiness of the client and his average monthly balance. Most of the banks have clear out the norms
for giving the credit cards.
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I. A person who earns a salary of Rs. 60,000/_ per annum is eligible for a card.
II. A reference from a banker and the employers of the applicant is insisted upon.
III. He should have a savings current account in the bank.
IV. His assets and liabilities on a particular date are reported to bank.
V. A statement of annual or monthly income.
VI. He is considered credit worthy upon to certain limit depending upon his income, assets and expenditure. The
eligible customer is asked to fill in application form giving the details of account number , name , address , income ,
wealth status and a proof of his income/wealth etc.
WHAT IS A CREDIT CARD?
A credit card is a card or mechanism which enables to purchase goods, travel and dine in a hotel without making
immediate payments. The holders can use the cards to credit fr om banks unto 45 days. The credit card r eli eves
the consumer from the botheration cash and ensures safety. I t is a convenience of an extended credit without
formali ty. Thus, credit card is a passport to, SAFETY, CONVENIENCE, PRESTIGE AND CREDIT.
Carrying Credit cards are innovative ones in the line of f inancial services offered by commercial banks. The idea
of credit card was first developed by aBAVARIAN FARMER, FRANZ NESBITUM MC NAMARA, an American
business man who found himself without cash at a weekend resort founded Dinners card in 1950. Right from that
time, the commercial banks and non banking companies in USA developed the idea of credit card to develop their
business. BARCLAYS BANK was the first bank to introduce credit card in 1966 in Britain. The credit card business
got momentum in 60s and a number of banks entered the field in a big way.
THE development of plastic money is one of the
recent Phenomenon's in the banking sector. Plastic
money is a charge card. It is a direct charge against
the limit sectioned. IT is a debt instrument issued
by some specialized companies. It is one step
forward towards cashless and chequeless society.
The operation is through electronic funds transfer
{EFT} installations and inter-bank network. Credit
cards are key to the opening of bank accounts for
daily payments by the card holders. Credit card has
been rightly called "PLASTIC MONEY". The
objective is to provide convenience and security. It
eliminates cash transactions, and protects from the
danger of pick pocketing a lot of cash. There is
usually interest free credit for 30 to 45 days.
Project Report on Banking Sector Convergence to Housing
Finance
Project Report on Banking Services in Retail
These plastic cards have the photo identity and holders signature embossed on the card. It also has the issuing banks
name and validity period of the card. The bank issuing the credit card knows well the customer and his
creditworthiness. Basically, the use of credit cards helps the holder to take the advantage of the two essential aspects
of the financial services functions:
http://www.allprojectreports.com/MBA-Projects/Finance-Project-Report/convergence-of-banking-sector-to-housing-finance-sbi-pnb-bob-loan-schemes.htmhttp://www.allprojectreports.com/MBA-Projects/Finance-Project-Report/convergence-of-banking-sector-to-housing-finance-sbi-pnb-bob-loan-schemes.htmhttp://www.allprojectreports.com/MBA-Projects/Finance-Project-Report/convergence-of-banking-sector-to-housing-finance-sbi-pnb-bob-loan-schemes.htmhttp://www.allprojectreports.com/MBA-Projects/Finance-Project-Report/retail-banking-service-in-rewari-city/retail-banking-services-project-report.htmhttp://www.allprojectreports.com/MBA-Projects/Finance-Project-Report/retail-banking-service-in-rewari-city/retail-banking-services-project-report.htmhttp://www.allprojectreports.com/MBA-Projects/Finance-Project-Report/retail-banking-service-in-rewari-city/retail-banking-services-project-report.htmhttp://www.allprojectreports.com/MBA-Projects/Finance-Project-Report/convergence-of-banking-sector-to-housing-finance-sbi-pnb-bob-loan-schemes.htmhttp://www.allprojectreports.com/MBA-Projects/Finance-Project-Report/convergence-of-banking-sector-to-housing-finance-sbi-pnb-bob-loan-schemes.htm -
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1. Transmission of payments
2. The Granting of cards.
A credit card is apayment cardissued to users as a system ofpayment. It allows the cardholder to pay for goods
and services based on the holder's promise to pay for them.[1]The issuer of the card creates arevolving accountand
grants aline of creditto theconsumer(or the user) from which the user can borrow money for payment to amerchantor as acash advanceto the user.
A credit card is different from acharge card: a charge card requires the balance to be paid in full each month.[2]In
contrast, credit cards allow the consumers a continuing balance of debt, subject tointerestbeing charged. A credit
card also differs from acash 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.
The size of most credit cards is 3 2 in (85.60 53.98 mm),[3]conforming to theISO/IEC 7810ID-1 standard.
Credit cards have an embossedbank card numbercomplying with theISO/IEC 7812numbering standard.
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