features of credit card

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Credit Card Features ASEEM R [email protected] om Presented By,

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Features of Credit Card

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Page 1: Features of Credit Card

Credit Card Features

ASEEM [email protected]

Presented By,

Page 2: Features of Credit Card

2

FEATURES

OF

MODERN CREDIT

CARD

AL

Page 3: Features of Credit Card

3

• Bank credit is most widely used payment

device issued by bank

• It is based on system of revolving credit

• The credit cardholder can use card at

merchant establishments to buy goods and

services.

Wide Coverage

Features of Modern Credit Card

Page 4: Features of Credit Card

4

• Technology dependent

The dependence on technology is inevitable to

keep the operating cost to the minimum.

Features of Modern Credit Card

Page 5: Features of Credit Card

5

• Owner Identification

A credit card identifies its owner and the one who is

entitled to purchase goods and services without

the physical money and is eligible for credit from

merchant establishments.

Features of Modern Credit Card

Page 6: Features of Credit Card

6

• Credit Limit

The issuer for the purpose of convenience and

security sets a credit limit for a cardholder and a

floor limit for a merchant establishment

Features of Modern Credit Card

Page 7: Features of Credit Card

7

• It is convenient medium of exchange which enables the cardholder to buy goods and services without using money

• Bank bears the risk of default on the part of the cardholder

• Credit card helps the holder to buy when and pay he can, i.e., bank pays to the seller immediately but collects from the card holder from 30-45days

Features of Modern Credit Card

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8

• Credit card is a document of credit worthiness and it minimizes the use of hand cash in the day transaction

• Credit card is issued to people having a certain minimal income.

Features of Modern Credit Card

Page 9: Features of Credit Card