CREDIT CARDS

A credit card system is a type of retail transaction settlement and credit system, named after the small plastic card issued to users of the system.  

A credit card is different from a debit card in that the credit card issuer loans the consumer money rather than having the money removed from an account. Most credit cards are the same shape and size, as specified by the ISO 7810 standard.

Debit MasterCard

Working: A credit card user is issued the card after approval from a provider (often a general bank), in which they will be able to make purchases from merchants supporting that credit card up to a pre-negotiated credit limit. Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, and the total amount owing. The cardholder must then pay a minimum proportion of the bill by a due date, and may choose to pay more or indeed pay the entire amount owing. 

Secured Credit Cards: A secured credit card is a special type of credit card in which you must first put down a deposit between 100% and 150% of the total amount of credit you desire. This deposit is held in a special savings account. The owner of the secured credit card is still expected to make regular payment, as he or she would with a regular credit card, but should he or she default on a payment, the card issuer can deduct payments on the card out of the deposit. Secure credit cards are an advantage to anyone with poor or no credit history. They are often offered to people as a means of rebuilding one’s credit. Secured credit cards are available with both Visa and MasterCard logos on them.

Most Common Card Types: