Credit Cards

“FUTURE”
Payment Card Promise to Pay

What is Credit Card ?

Purchased of
For Pre- Goods &
Approved Services
Credit
“NOW”
 Invented in 1887, By Edward Bellamy

1st Credit Card - 1920s in US

Histo
Bank of America - 1958 - Visa Card
ry
Group of Banks in US -1966 - MasterCard
Barclay’s Bank in UK -1966 - Non US Credit
card
 Mechanism
(1)Contract for Credit Card

Card Issuing (2)Issue of Credit Card Customer

Bank
(8)Payment of Credit Card

(7)Clearing & (4)Charging (3)Purchas

Settlements of Credit e of Goods
Card & & Services
Raising Bills

(5)Submission of Bill for

Merchant’s Collection Merchant
Bank Establishment

(6)Payment for Bills

Factors Determining Interest Rates

Prime
Reverse Lending
Repo Rate Repo rate Rate
Types of Credit Cards

Personali Shoppin
Low Premiu
ze g
Interest m

Low
Fuel
Rewards Air Miles Balance
rebates
Transfer
 Advantages
Limitations

 Safer Than Carrying cash  Paying high Rates of Interest

 Build your Credit Rating  Potential Credit Damages
 You can get Interest-Free days  Credit Card Fraud
 Earn Reward points when You  Accessing Cash is Expensive
Spend  Annual Fees
 Can request chargeback, if
 Credit Card Surcharges
unhappy
 Other fees can Quickly add up
 Work in any Currency
 Often Complimentary Extras
 Debt Consolidation & Interest
savings