Credit card is a plastic card, which can be used by the customers to shop from and pay their bills, wherever required.
Credit cards are different from the debit cards in a manner that credit cards don’t require balance in user’s account. The bank gives the credit and the credit limit, is set by the bank depending on the status of your account. The bank chooses the credit limit and the type of the card to be issued. Specific amount is charged as the rate of interest and repayment duration is pre-specified.
All credit cards follow the international standard ISO 7810 and hence are of same shape and size. There are different kinds of credit cards available to choose from.
There are different business cards available like Visa, Advanta, Citi and CitiBusiness, Master Card, American Express and others. These business cards have lower rates of interest and are generally provided free of cost. There are cash back rewards, airline rewards, local schemes and others available with the credit card. These cards are provided in the name of business or individual.
Citibank provides the credit card for sole owners of the business as well as giant companies by providing separate business cards for all the employees. Specific reward points are provided for all business transactions or any purchase made thereof. Advantage card provides you with one free domestic airline ticked free if you purchase one ticket for travel. That too, not in the off-season, but whenever and wherever you demand for.
There is certain percentage of cash back provided when you make general purchases.
Online services are provided for all business cards and purchases as well as payment of bills can be made online. All banking facilities like viewing your statement, purchase transactions, credit limit, amount due to be paid and every minute information regarding your account is made available online.
Online provides business related information, accommodation quest, list of hotels and motels, and provides you handsome remuneration for referrals. Online provides you with savings even while you are spending. What a wonderful approach!
Visa cards are providing all the people around the world with an opportunity to grow their small business by providing finance for the tools and resources and to fulfill their entrepreneurial goals. Visa cards help in alleviating poverty and provides strong support to low-income people who otherwise would have buried their dreams due to lack of finances.
Business cards have lower or at times no transaction or processing costs, and provide secure transaction with zero percentage of cash theft. Business cards again provides a variety of financial products and benefits.
Some credit cards charge higher annual maintenance fees but the benefits they provide are surplus and unmatched. The rates of interest may vary from card to card and the rate of interest may jump instantly if the payment is late or when the bank may revise its rate of interest or revenue. Due to immense competition in the credit card industry, the customers are attracted by lucid reward points or cash back which can be availed while making further purchases.
These days’ credit cards with rates of interest as low as zero percentage are available.
The only drawback is that the repayment duration is less of about six months to a year and if not paid within this time period then heavy rates of interest are levied upon. Certain amount of grace period is provided before actually charging higher rates of interest.
Certain card associations like ‘VISA’ and ‘Master card’ serve as a gateway between the issuer and the acquirer. Whenever any purchase is made via the credit card the cardholder pays for the purchase, the merchant verifies it for authorizing with the issuer instantly that both the amount as well as the card number is valid. If not then the transaction is curtailed. If it is valid then the amount is deducted from the buyers credit limit.