A credit card is a small plastic card issued to users as a system of payment. The new generation is said to be a cashless society as the use of credit cards increases especially with e-commerce on-line shopping and other transactions.
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A cardholder enjoys various benefits such as are convenience, easy
monitoring of expenditures through the statement of accounts, credit
cards are accepted worldwide which is most beneficial to travelers, and
other perks offered by the card issuing bank.
It allows the credit card holder to purchase goods and have
services from the merchants (stores, establishments etc.) for the
convenience of a credit line by the issuer. Banks and Credit Unions
usually issues credit cards to consumers (or the credit card holder).
Having a credit card is also like a cash advance from the issuer and pay
later subject to interest charge.
A statement of Account is being sent to the consumer or user with the
full details (including interest charges) of the purchases made for a
month period coverage. Any unexpected charges indicated should be
reported by the issuer and ask reconciliation of the statement. The
payment can be partial, means a minimum amount as specified in the
statement (with interest charges) or the full balance on or before the
due date. Cardholders may arrange and opt to choose automatic
deductions from their bank accounts as long as it has sufficient funds
to avoid the hassle of paying the credit card monthly.