CREDIT CARDS-AN INNOVATIVE FINANCIAL INSTRUMENT IN BANKING
Introduction:
A credit card is a monetary instrument that enables the cardholder to obtain goods and services without actual payment at the time of purchase. It is also popularly known as plastic money. The value of purchases made by the cardholder using the card is recovered at the end of a specified period, usually a month, called the billing cycle. It can be said that a credit card is basically a “Pay Later” card that is provided to a customer.
How do credit cards work?
Every transaction made on a credit card involves three parties:
Card Issuer
Cardholder
Trader
A credit card holder, subsequent to making a purchase or availing a service at a designated trader, presents his credit card instead of paying cash. The trader checks the number of the card against the Hot List provided to him by the Card Issuer, to ascertain the authenticity of the cardholder. The signature of the cardholder on the voucher provided by the trader should tally with the signature on the credit card.
The trader then presents the sales vouchers to the bank, which reimburses it, after charging commission. At the end of each billing cycle, the value of the transaction is included in the statement mailed to the cardholder. Read more
Could this be the end of free banking?
Banks could be changing the way in which accounts operate, as high street banks have been put under pressure in the way they issue charges to customers for breaking terms, such as exceeding agreed overdrafts. This will mean that they will have to explore new avenues for raising revenue, which is likely to lead to the end of free banking.
Paid accounts, mortgages and overdrafts would be affected by the changes, as reliance on the significant charges issued to customers would be reduced. Read more
Make a protected bet on saving account
In the preceding years, the banking system of India was not at all identical to the one people see these days. It has matured a lot in past decade or so and has witnessed some significant modifications lately. The banking system of the nation has modified itself only to fulfill the needs of its growing customers. At present, with the emergence of foreign and private sector banking companies, the scenario of the national banking industry has changed significantly.
Nowadays, banks are adopting a customer-centric approach, so as to live up expectations to the necessities of their people and has rolled-out various new products and services. Read more
CBA points to improvements in economy
Bad debts have reached their peak the Commonwealth Bank of Australia (CBA) claims, as more people make use of its monetary assistance services.
An increasing number of people are taking advantage of the financial assistance services on offer from the Commonwealth Bank of Australia (CBA), it has been revealed. Read more
Keeping Track of your Bank Account Balance – Easy as 1,2,3….
Keeping track of your bank account balance has never been easier. Long gone are the days when the only way to accurately discover how much was sitting in your current account was to traipse down to your local branch, or pick up the phone and call the bank’s telephone banking department.
Now, the vast majority of account holders can determine their balance – and indeed do the majority of their banking – 24 hours a day, seven days a week via the internet. Offered by all the major high street banks online banking allows account holders to effectively self-serve their banking needs. Setting up direct debits, standing orders, arranging bill payments and transferring money between accounts can all be easily done online as well as host of other services, dependent upon the user’s bank. Read more