What is Credit Card

What is Credit Card? I will explain what credit card is by using Wikipedia as my reference. Here it is,

A credit card is part of a system of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services.[1] The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. A credit card is different from a charge card, where a charge card requires the balance to be paid in full each month. In contrast, credit cards allow the consumers to 'revolve' their balance, at the cost of having interest charged. Most credit cards are issued by local banks or credit unions, and are the shape and size specified by the ISO/IEC 7810 standard as ID-1.

Credit Card are issued afterwards an annual has been accustomed by the acclaim provider, afterwards which cardholders can use it to accomplish purchases at merchants accepting that card.

When a acquirement is made, the acclaim agenda user agrees to pay the agenda issuer. The cardholder indicates accord to pay by signing a cancellation with a almanac of the agenda data and advertence the bulk to be paid or by entering a claimed identification amount (PIN). Also, abounding merchants now acquire exact authorizations via blast and cyberbanking approval application the Internet, accepted as a 'Card/Cardholder Not Present' (CNP) transaction.

Electronic analysis systems acquiesce merchants to verify that the agenda is accurate and the acclaim agenda chump has acceptable acclaim to awning the acquirement in a few seconds, acceptance the analysis to appear at time of purchase. The analysis is performed application a acclaim agenda transaction terminal or Point of Sale (POS) arrangement with a communications hotlink to the merchant's accepting bank. Data from the agenda is acquired from a alluring band or dent on the card; the closing arrangement is in the United Kingdom and Ireland frequently accepted as Dent and PIN, but is added technically an EMV card.