Credit Card And Its Variety

The credit card can be used as the mode of payment of the substitute to the hard cash. The credit card can be used anytime foot the product or service transaction, which is guaranteed legally. The credit card is also used to the carry out the withdrawal of the cash to the bank or Cain of the credit card publisher.

So credit card is the mode of payment in the form of a card which is made out of a plastic and at the surface of it written the credit card holder’s name, the membership number, and the credit card holder’s signature that could give the substitution of the method of payment instead of the legal paper money and coin and commercial paper like the cheque and gyro.

Before the advent of the credit card that is used as the mode of payment in carrying out the trade transaction, Edward Bellamy wrote a book in 1887 which was published in the next year with a title of Looking Backward that later on became one of the famous and bestselling books of the year.

Based on the method of payment, credit card can be categorized as charge card and debit card.

1.     Credit card

It is a kind of a card, which can be used as a substitute to the cash payment. It can be used as the mode of payment transaction. It can be paid totally or can be paid by installment.

The installment paid through the credit card was counted from the value of the bill of the balance, which is added as the monthly interests. The bill of last month including the interest will become the loan in the next month.

The credit card has the provision of the limit applied to all the member depended on the card kind (gold, regular or classic), minimal payment 10% - 20% from the total balance of the bill that was paid before than the due that could be imposed. If you made the delay in the credit card payment (after being due) it would result to the delay fine as big as certain percentage, which is minimally paid.

2.     Charge card

It is the card is used as the payment of a trade transaction of product or the services where the customer must pay the total bill at the end of the month or in the next month with or without adding the additional cost.

Actually credit card did not have the facility to use the limit, payment was full on all the transaction before the next bill and without the use of percentage the interest, but when payment was not fully done from the bill then it will treated as fine.

3.     Debit card

It is the payment card on the trade transaction or the service by using the card. The transaction, which uses this kind of credit card, was actually the cash transaction but the paying off was carried by means of debiting in a direct way.

The debit cardholder should have an account to the bank. This is because the principle of the transaction is like the cash transaction; the person who has enough cash can carry out the transaction through card.

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