How To Classify Credit Card - Which Group Are You In Prefer?

The credit card is the means of payment as thecard program.
replacement of money and the credit card is usedBased on the payment method, the credit card
anytime for the product or service transaction orwas distinguished to credit card, charge card and
guaranteed the legality of the cheque that wasdebit card.
issued to places that could accept the credit card1. Credit Card
(merchant). The credit card also to carry out theCredit Card is the kind of credit card that could
cash withdrawal to the bank or the network ofbe used as the implement in the product or
the credit card publisher (cash advance).service payment of the trade transaction, where
Therefore, the credit card was the paymentthe paying off or credit card payment could be
implement in the form of the card that wascarried out simultaneously or by paying by
made from a kind of plastic where at its surfaceinstallments totaling minimal certain.
written the name, the number of the membershipThe number of credit card installments was
and the holder's signature of the credit card thatcounted from the value of the bill of the balance
could give substitution of the method of paymentadded by the monthly interest, the bill of previous
instead of the legal one like paper money and coinmonth including the interest was the subject of
and commercial paper like the cheque and giro.the loan in the following month.
At the beginning before money known as theThe typical characteristics of the credit card was
transaction implement, each transaction wasthe provisions of the limit that applied to all the
carried out by means of barter (the transactionmember depended on the card kind (gold, regular
by means of the exchange of the thing with theor classic), minimal payment 10% - 20% from the
thing or the thing with the service or the servicetotal balance of the bill and was paid not later than
with the service). The further development wasfall due that was determined. The delay of credit
found money as the effective and efficientcard payment (after being due) would subjected
transaction implement. However, the use ofto the delay fine as big as certain percentage
money experienced the obstacle and the certainfrom minimal payment.
risk so as finally the credit card was created.2. Charge Card
Before the credit card was used as the paymentCharge Card is the card that could be used as the
implement in carrying out the trade transaction,payment implement of a trade transaction of
Edward Bellamy wrote a book in 1887 and wasproduct or the service where the customer must
published a year later with the Looking Backwardpay all the bill fully at the end of the month or in
title that afterwards became one of thethe following month with or without the additional
best-sellers in that period.cost.
In this book, Bellamy took the set related inGenerally, this credit card did not have the
Boston, the United States in 2000. In one of hisprovisions of the use limit, payment was full on all
dialogues was mentioned that in 2000 (onethe transactions (the bill) before the following bill
hundred thirteen years after the writing of thisand without used percentage the interest, but
book), money as the payment implement at thiswhen payment was not done fully from the bill will
time will be shifted with the creditcard, where thebe subjected to the delay fine.
card holder could satisfy all the requirement by3. Debit Card
using this credit card.Debit Card is the payment card on the trade
The credit card, initially only as a method oftransaction of the product or the service by using
avoiding the embarrassed feeling because of notthe card. In principle, the transaction using this kind
bringing enough money to a restaurant or theof credit card was the cash transaction by not
shopping centre. Franklin National the Bank, wasusing cash but the paying off or payment was
the first agency that issued the bank's credit cardcarried out by means of debiting (reduced)
to his customer in 1951.directly the balance of the account of the credit
Afterwards the credit card was accepted by thecard holder and at the same time crediting the
community and many small banks gathered withaccount of the sale (merchant) as much as the
the American bank system, in 1966 permission totransaction to the publisher's bank (the manager).
widen the credit card all through small banks inThe debit card holder must have the account to
America and other countries. However severalthe bank, because this transaction principle is like
banks felt unsatisfied and want to authorization inthe cash transaction, so the transaction could be
operating the credit card. The wish of credit cardonly carried out if of this credit card holder had
authorization was the beginning of operational ofthe enough balance to cover the transaction cost,
the credit card was separated. The bank or theafterwards payment was done with debiting
financial agency was given by the decisivedirectly the balance of the account of the card
freedom fully in compiling their respective creditholder and crediting the merchant account.