What Are Features Of Credit Card?

What are Features of Credit Card?

The 11 of import features of blogspot.com//search?q=what-is-credit-card-meaning-definition">credit card are depicted inwards the ikon below.

The head characteristics or features of credit bill of fare are listed equally follows:

1. Alternative to cash.
2. Credit limit.
3. Aids payment inwards domestic in addition to unusual currency.
4. Record keeping of all transactions.
5. Regular charges.
6. Grace catamenia or grace days.
7. Higher fees on cash withdrawals.
8. Additional charges for delay inwards payment.
9. Service tax.
10. Bonus points.
11. Gifts in addition to other offers.

Now let's speak over each characteristic of credit bill of fare 1 past times one.

1. Alternative to cash

Credit bill of fare is a amend choice to cash. It removes the worry of carrying diverse currency denominations to pay at the merchandise counters. It is quite tardily in addition to means fast to usage a credit bill of fare rather than waiting for completion of cash transactions.

As an alternative, credit bill of fare helps a cardholder to move anywhere inwards the terra firma without a take to deport an ample amount of cash. It also reduces the possible run a jeopardy of coin theft in addition to gives its user a consummate peace of mind.

2. Credit limit

The credit cardholder enjoys the facility of a credit bound assail his card. This bound of credit is determined past times the credit bill of fare issuing entity (blogspot.com//search?q=what-is-credit-card-meaning-definition">bank or NBFC) exclusively after analyzing the credit worthiness of the cardholder.

The credit bound is of 2 types, viz.,

1. Normal credit limit, and
2. Revolving credit limit.

Normal credit limit is commons credit given past times the banking company or NBFC at the fourth dimension of issuing a credit card.

Revolving credit limit varies with the fiscal exposure of the credit cardholder.

3. Aids payment inwards domestic in addition to unusual currency

Credit bill of fare aids its cardholder to brand payments inwards whatever currency of choice. In other words, it gives its holder a unique facility to brand payments either inwards domestic (native) currency or if necessary, also inwards unusual (non-native) currency, that equally good equally in addition to when required.

Credit bill of fare reduces the cumbersome procedure of currency conversion. That is, it removes the fiscal complexities oftentimes encountered inwards converting a domestic currency into a unusual currency. It is because of this feature, a credit cardholder tin flame perchance brand payments to merchants introduce inwards whatever corner of the world.

4. Record keeping of all transactions

Credit bill of fare issuing entities similar banks or NBFCs keeps a consummate tape of all transactions made past times their credit cardholders. Such a tape helps these entities to enhance appropriate billing amounts payable past times their cardholders, either on a monthly or roughly periodic basis.

5. Regular charges

Regular charges are basic routine charges charged past times the credit bill of fare issuing entity on the usage of credit bill of fare past times its cardholder. These charges are nominal inwards nature.

The regular charges are primarily classified into 2 types, viz.,

1. Annual charges, and
2. Additional charges.

Annual charges are collected on per annum or yearly basis.

Additional charges are collected for other supplementary services provided past times the credit bill of fare issuing entity. Such services include, add-on-card (an additional credit card), number of a novel credit card, etc.

6. Grace period

The grace catamenia is referred to those minimum numbers of additional days inside which a credit cardholder has to pay his credit bill of fare neb without whatever incurring involvement or fiscal charges.

7. Higher fees on cash withdrawals

Credit-card issuer makes charges on cash withdrawals made through credit bill of fare at the blogspot.com//search?q=what-is-credit-card-meaning-definition">ATM outlets in addition to other desks. Generally, cash withdrawal fees are quite higher than fees charged past times the banking company or NBFC for the other regular credit transactions. On cash withdrawn done through a credit card, involvement is charged from the same day. That is, involvement is charged since the solar daytime on which cash is withdrawn. Usually, no grace catamenia is provided for cash transactions.

8. Additional charges for delay inwards payment

The credit bill of fare payment is supposed to go made inside a due appointment equally mentioned on the neb of a credit card. If payment is non paid on time, in addition to thus a credit-card issuer charges roughly additional costs, which are resulted due to delay inwards payment. These charges are charged to compensate (recover) the involvement cost, direction toll in addition to whatever other related costs bared past times the credit bill of fare issuing entity.

9. Service tax

Service blogspot.com//search?q=what-is-credit-card-meaning-definition">tax is included inwards the full amount charged to the credit cardholder. This mandatory service revenue enhancement imposed past times the regime also increases the finally terminate toll bared past times a credit cardholder. Many credit bill of fare providers (issuing entities) convey policies of reversing the service revenue enhancement charged on the buy of gas, fuel in addition to other similar goods.

10. Bonus points

The contest alongside the credit bill of fare providers is unbending (adamant). Offering diverse incentives is unremarkably a trendy (fashionable) means to improve the sale of the products inwards the ordinary course of education of blogspot.com//search?q=what-is-credit-card-meaning-definition">business. Following this trend, credit bill of fare providers also laissez passer on bonus points on the fiscal value of the transactions compiled past times their customers.

11. Gifts in addition to other offers

At a later on phase (i.e. after crossing pre-determined number of bonus points) accumulated bonus points are redeemed either past times converting them into gifts, cash dorsum offers, or whatever other similar compelling offers. To collect many bonus points, the credit cardholder has to deport out a considerable number of transactions through his credit card.

Conclusion on Credit Card

Based on news made above, nosotros tin flame conclude that,

Credit bill of fare is the outcome of comprehensive banking functions.

Credit bill of fare is real convenient fiscal short-term lending facility available to a credit cardholder. However, the security in addition to security of the credit bill of fare are also of prime number importance. These depend on the physical protection of the credit bill of fare equally good equally inwards the isolation (confidentiality) of the credit bill of fare number, bill of fare value number (CVV), personal identification number (PIN) in addition to other sensitive credentials of the credit cardholder.