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Shopping and Payment Methods

Shopping is one of the global and local issues, as a society in the whole world is not free of individual shopping so that people go to stores, supermarkets and sales places designated for general life needs such as food ingredients, drinks, clothes, tools for the home and many more, and money is the main element of shopping for what There are buying and selling operations, where the methods of paying money vary. There are those who pay money directly in cash, via electronic payment, or through the so-called credit cards, and in this article, we will talk about credit cards.

Definition of credit cards

Credit cards, which are called credit cards, are defined as small plastic cards with a magnetic strip containing a code that is read from an ATM, and they are issued by approved financial institutions and used in buying and selling operations in addition to e-commerce, where credit card manufacturers By placing a higher ceiling on the money that is used in the card, and credit cards are characterized by the fact that the amount of money paid through them is not deducted from the bank account directly, but is deducted from the amount of money credited from the supplier company, where the money is paid once every 30 days, and the customer can By credit card paying the debited cash in full or in parts by adding a bank interest rate.
What are credit cards
What are credit cards

Advantages of credit cards

Credit cards are considered one of the most important means of financial payment used at the present time, because of the advantages they have that contribute to increasing demand for them and using them more widely. The following is a detail of the most important of these features:
  • Enhancing the financial security of the card user, as he does not need to carry large sums of money when he goes shopping.
  • Safety and protection of merchants' money from loss or theft.
  • Increasing the percentage of profits and cash returns by raising the rate of sales by attracting new customers.
  • Credibility, as the merchant's ability to collect his financial rights, is supported through the card.
  • Rewards and points, as through credit cards, revenues are obtained for use in cash withdrawals.
  • Global acceptance, where services and convenience are provided to bank customers at all times and days.
  • The possibility of obtaining financial loans from various banks.

Types of credit cards

Credit cards are characterized by their global and international importance, as they are considered one of the most important means used in conducting financial and monetary transactions, because of their advantages that contribute to their spread on a wide global level. Credit cards have been divided into a group of types, and the following is a detail for each of them:
  • Standard banking credit card: It is the card through which the issuer, such as the bank, the savings institution and the credit union, grants a periodic line of credit to the cardholder.
  • Debit Card: These are cards issued by financial institutions that allow their holders to pay their purchases by drawing on their current accounts.
  • Account Card: It is called in English the Charge card, whereby the consumer can purchase on the account and pay bills at a later time through the account card.
  • Secured Credit Card: It is a card secured by interest-bearing savings deposits, through which the consumer's line of credit is guaranteed.
  • Prepaid card: It is a card that is based on fixing a specific amount of money so that the card can be accessed with that amount, as this amount is gradually reduced whenever the card is used.
  • Student credit cards: These are cards designed specifically for college students, as these cards have a low-interest rate in addition to rewards.
  • Business credit cards: These are cards designed specifically for business use, as they are an easy way to maintain business and personal transactions.
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