Things to Know About Credit Card

A credit card is a plastic card issued by the bank or another financial institution that pays the capital to the seller on behalf of the credit card holder and the credit card holder has to pay the amount which he/she has spent at the end of each month. In simple words, a person can shop anytime with a credit card and can pay the total amount which he/she had spent the whole month to the credit card issuer at the end of a month. A credit card can be referred to as a small loan that is issued by a financial institution. The concept of credit cards was given by Edward Bellamy in the utopian novel Looking Backward.

Credit card contains:

• Bank logo ( through which it had been issued)
• EMV chip ( only on smart cards)
• A hologram
• Card number
• Logo of card network ( eg. MasterCard, visa, etc.)
• Expiry date
• Contactless chip

And on the back

• A magnetic stripe
• Signature 
• CVV number

How a credit card works

1. Whenever you want to pay the amount with your credit card you have to insert it into the POS machine. The seller or the person taking the money from you gives the POS to you for entering the PIN
2. When a card is inserted or swiped on the POS machine it reads the data of the magnetic strip and when you enter the pin it sends the data with the PIN to the credit card issuer
3. If the issuer finds everything correct it approves the transaction and money gets credited to the seller’s bank account. A seller gives you a copy of the receipt which is printed by the POS machine itself.
4. In case of the requirement of credit card details for testing purposes or at any suspicious site, a fake credit card generator can be used.

Pros of credit card

• You can shop anytime and pay the whole amount at the end of each month
• With the credit card, you can get the EMI facility easily
• Many financial institutions give you some offers if you use their credit card. For eg Discounts for shopping, ticket booking, Reward coins which you can use in place of money
• A credit card gives you a detailed list of your monthly expenses 
• A credit card is found to be more secure than a debit card as in the case of a debit card the money has got deducted from your bank account but in the case of a credit card if you face any fraud the money is kept safe at your account as no financial institution can gain the control of it without your permission. 
• If a thief clones your card and spends money from your card and it gets proven you are not liable to pay any amount which is spent by the thief.
• Some credit card companies provide you accidental insurance, personal insurance, etc. if you purchase their credit cards.

Cons of credit card

• It’s easy to pay feature causes over expenditure
• Credit card charges you some interest at the end of each month with the credit card bill. The average interest charged is 3% PER MONTH WHICH WILL BE 36% per annum of your total bill.
• Some credit cards have the annual maintenance fees
• It is easy to clone your credit card by someone and he/ she can spend money with your credit card. If you find anything suspicious, immediately contact your bank.
• Many fraudsters are operating fraud websites and asking customers for their credit card details to get access. Customers should use the fake credit card numbers that work 2021 on these websites. 
• Every person cannot get a credit card he/she has to pass some eligibility criteria to get a credit card

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