Now days everyone wants to do things easily whatever the work everyone wants it done in an easy and safe way. In older times people don’t have technology to do things safely and the most problems are about traveling with cash. Suppose you want to go on a holiday with your family as you take everything with yourself like clothes, packing bags, and the most important without this you can’t enjoy is cash. While cash in hand people always worried about stealing money so here is the solution, technology has risen so much that you can carry thousands of cash in your simple charge card that is popularly known as the Credit Card.
Now You Want To Know, What Is Credit Card?
A payment card issued to a person is known as the Credit Card. It allows users to pay for their goods which they buy and other services like paying at the hotel etc. It is only for those users who have a bank account, the bank gives the user a credit card so that he can carry cash safely and easily and pay the amount he spent at the end of the month. The credit card is about 85.60 mm × 53.98 mm (3.370 in × 2.125 in) rounded corners with a radius of 2.88–3.48 mm.
Origin Of Credit Card
Firstly, it was introduced in 1928 as a charge plate in the US it contains the customer’s name, city and state and the paper at the back of the plate for signature if a customer after purchase. Then slowly it gets transformed and come as in the air travelling (air travel cards) for clubs or hotels (early general purpose charge cards) and as the technology develops the cards get modified and its manufacturing also got changed from plastic to metal.
Usage Of Credit Card
- For business purpose.
- For secure transactions.
- For prepaid use.
- For digital purchase.
Benefits Of Credit Card
- Easy
- Protection for transactions.
- Exciting offers given by a bank or credit union to use.
- Loyalty program (purchase rewarded with points).
- Some bank offers 0% on late fees.
Transaction Step
- Authorization
When the user buys anything the merchant submits the transaction and sent to the bank for approval and then bank send the authorization code to the merchant so that he can verify and process the transaction.
- Batching
Transaction which is authorized is stored in batches and gets submitted at the end of the business day.
- Clearing And Settlement
The issuer pays for the transaction to the acquirer.
- Funding
Merchant got paid by the acquirer after he got paid.
- Charge Backs
The transaction got returned to acquirer by the issuer for resolution.
Payment through Credit Card is fast, secure and easy. It is very helpful for the entrepreneurs they can play their business in a safe and reliable way. After purchasing an entrepreneurs have some time to pay to the bank in that time he is able to do his business and earn money and pay to the bank, in this way the individual get his profit and bank gets its money. Credit Card is very useful in an individual’s life and make him tension free about cash while travelling, eating, doing business and many purposes.