Concept And Checking Of Credit Cards

Concept Of Credit Cards

There was a system of asking for credit since long time, but in 1930 there developed a system of plastic card. The system become successful especially after 1950 when banks and financial institutions started to provide loans to the individual customer and guaranteed payment to the business organizations. The notable internationally accepted credit cards are American Express, Visa Card, Master Card etc. Now a days, hospital credit card, restaurant credit card, telephone, bus etc are also available. One can use this card number to deal with bank account, payment of air bills, transfer money etc.

Debit cards are used for payment, to receive cash to the limit one has deposited. Most common method to use debit card is ATM machines. Business houses accept it to the limit of money one has deposited to the bank. Where as credit card is to get loan from the financial institution. The basis of credit card system is " buy now pay later". Business organizations will accept to the limit the bank will guarantee. The bank provides credit card and cash limit on the basis of customer's financial status, employment, reputation etc. The cards are normal, golden or platinum. The color of the card symbolizes the dignity of the customer  Similarly, business organizations wishing to deal business in credit card apply for the membership of card from the bank. The bank authorizes the organization to receive to the limit of payment from the card holders. 

The credit card system is very convenient to carry, easy to handle, no worry of lost and theft. It facilitates to travelers a lot.

Checking Of Credit Cards

* Check the name or company of the credit card. Office/ Agency must have valid membership of the card. Do not accept the card with which company has no dealing agreement.

* Check the holders name on the card. Only owner is allowed to use it.

* Check the validity of the credit card. 

* The credit card should be pure. There should not be any alternation, defaced.

* Check the limit customer can use and it should be within your company limit also.

* The card number should not be in card cancellation book.

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