Professional Documents
Culture Documents
Credit cards
The concept of using a card for was first described in
1887 by Edward Bellamy in his utopian novel Looking
Backward.
The first credit card invented was dreamed up by a
man named John Biggins, and was called the "Charg-It"
card.
Credit cards
Another early credit card was the Diners Club card,
which was invented in 1949.
American Express had been in existence since the
1850s, but it was not until 1958 that the company
introduced their first credit card on a small piece of
purple plastic. In all of the history of credit cards,
AMEX was the first to use plastic in their material
instead of paper or cardboard.
Credit cards
Particulars Displayed On
Credit Cards
CLASSIFICATION
OF CREDIT CARDS
Based on
mode of
credit
recovery
Charge
Card
Standard
Card
Based on
status of
credit
card
Revolving
credit
card
Business
Card
Based on
geographical
validity
Domestic
card
Gold
Card
Based on
franchis
e/ Tie-up
Internatio
nalCard
Proprietary card
Master
Card
Based
on
issuer
Categor
y
Individ
ual
Cards
VISA
Card
Corpor
ate
Cards
Domesti
c Tie-up
Card
Based on status of
credit card
Based on geographical
validity
Based on issuer
Category
Innovative Cards
ATM Cards
Debit Cards- debits designated saving
bank a/c.
Private label Card- issued by retailers and
can be used only in that retailers store.
Affinity Group Cards- it can be used by
collection of people with some form of
common interest or relation
( professional ,alumni, retired persons
org. )
Bill
Bill raising
raising
payment
payment
Bill
Bill to
to card
card holder
holder
Card
Card payment
payment
Purchase
Purchase of
of goods
goods and
and service
service
on
on card
card
merchant
merchant delivers
delivers goods
goods after
after taking
taking an
an authenticated
authenticated credit
credit card
card
and
and noting
noting the
the number
number and
and taking
taking signature
signature on
on certain
certain forms.
forms.
Merchant
Merchant raises
raises the
the bill
bill for
for the
the purchase
purchase and
and sends
sends it
it to
to
the
credit
card
issuing
bank
for
payment
the credit card issuing bank for payment
Issuing
Issuing bank
bank pays
pays amount
amount to
to the
the merchant
merchant
establishment
establishment
Issuing
Issuing bank
bank raises
raises bill
bill on
on the
the credit
credit cardholder
cardholder and
and
sends
it
for
payment
sends it for payment
Credit
Credit card
card holder
holder makes
makes the
the payment
payment to
to the
the
issuing
issuing bank
bank
Advantages
To Cardholders :
To Merchants/ Shopkeepers :
Guaranteed payment
Lessens the security risk of holding the
cash
Overseas visitors may purchase more,
providing new market for retailer
Joining fee
card renew fee
services charges from retailers
Interest charged to customer
Disadvantages
To cardholders :
Loss or stealing of card
To Merchants/ Shopkeepers :
Retailers are required to pay a certain fee and service
charges at an agreed percentage of their credit card
sales.
To credit card companies :
Risk of bad debt
Risk of fraud
Safety Tips