Credit Card Services

Credit Card Introduction:

A credit card is a type of plastic money card issued by banks and other financial centers to a user or a consumer in order to provide them credit for availing goods and services. The money is provided in advance on the basis of card holder’s assurance to pay it back after certain days (mostly in a month time).  The credit card allows the user to ‘revolve’ his balance at the cost of interest. The size and shape of credit cards are based on the standards written under ISO/IEC 7810.  The standards are commonly known as ID-1.

Elements of a Typical Credit Card:

A credit card consists specific details of card and card holder’s identity, such as:

On Front Side of Credit Card


  • Logo of bank issuing the card
  • EMV chip on “smart cards”
  • Hologram
  • Credit card number
  • Logo of card brand
  • Expiry date
  • Card Holder Name
On Back Side of Credit Card
  • Magnetic Stripe
  • Signature strip
  • Card Security Code
Working Criteria of Credit Cards:

Credit cards are issued to people who are having an account in the issuing bank. The amount of money that comes in the account and retains in it decides the amount to be credited on the credit card. The credit card could be used in places where the merchant accepts it or have the credit card services available for the consumers.

After making the purchase, the card holder signs a receipt having a record of card details and amount to be paid, in order to indicate his consent to pay the money back. Some merchants demand card holders to enter their personal identification number (PIN) in the credit card verification machine to clarify their verification. Many merchants go for verbal authorizations via telephone or Internet to agree to the transaction called as ‘Card/Card holder Not Present.’

The verification systems help merchants in knowing whether the amount of credit asked is under the limit of credit issued by the issuing bank or not.  The verification is done electronically in few seconds via Credit Card Payment Terminal or Point of Sale (POS) system.  The POS system acquires a communication link between merchant and merchant’s acquiring bank.
The card issuing bank sends a credit card statement to the card holder at the end of month to provide information on the purchases undertaken, outstanding fees, and the total amount owed by him.

The card holder have to pay the amount taken on credit within the limited period, other wise a high rate of interest will get attached to it. However, he can claim on any fraudulent entry he finds in the statement and can ask for its verification and details. Further, renewal of credit card time period is done the basis of current amount in the account of the card holder.

Benefits to Customers

The foremost benefit credit cards provide to the holder is the convenience. It allows customers to make quick payments (in the form short-term loans) without even looking out at their balance. Although he can make payments before paying for it, but the payments will be allowed if they are within the reach of its credit limit.
Also carrying credit cards helps in reducing the load and insecurity associated with carrying huge amount of money everywhere.

Benefits to Merchants

A credit card transaction is a much secured type of transaction that a merchant could ask for. Because the transaction involves the assurance from the issuing bank for making payments.
 The transactions are performed electronically, hence there is not need to keep large amount of cash in the shop. This further reduces the chances of thefts and frauds by the employees and people out side.
Above all, it helps in raising sale of the products. Because credit cards allows its users to purchase things at time when they are not carrying enough amount with him. Every merchant should install credit card services in his shops because of its numerous benefits like:

    • Acceptance of all forms payments
    • Acceptance of payment from anywhere
    • For enhanced protection