CREDIT CARD PAYMENT SYSTEMS

GEET ARORA B.B.A 3RD YEAR ROLL NO - 4204

CREDIT CARD PAYMENT SYSTEMS

Used as an online shopping payment tool  Most popular methods of payment especially in the retail marketers  To enable credit purchases and cash withdrawals  It is a pre-approved loan which the customer uses


An instrument facilitating current purchases to be paid in future  Payment system has various advantages like: privacy, integrity, compatibility, good transaction efficiency, acceptability, convenience, mobility, low financial risk and anonymity  Several limitations like: lack of authentication, repudiation of charges and credit card frauds  Basic process of online credit card payment system is very simple


Kalakota Whinston (1996), break credit card payment on online networks into three basic categories: 1. Payment using clean credit card details 2. Payment using encrypted credit card details 3. Payment using third party verification

CREDIT LIMIT
  

 

Extended credit card limit Amount of credit limit sanctioned by the issuing bank to the card user Depends on the ability of the card user to repay which eventually depends on the card users salary Ascertain the credit limit on the basis of his/her monthly/annual take home salary If self employed then determined by the income generated by the business they carry

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