Skip to main content

Explain Advantages and Disadvantages of Credit Cards

Credit Card

The Credit Card is plastic credit card with a magnetic strip issued by a bank or financial institution. Holders of a valid credit card have the authorization to purchase goods and services up to a predetermined amount, called a credit limit.
Explain Advantages and Disadvantages of Credit Cards
Explain Advantages and Disadvantages of Credit Cards

The vendor receives essential credit card information from the cardholder, the bank issuing the card actually repays the vendor, and eventually the cardholder repays the bank through regular monthly payments. If the entire balance is not paid in full, the credit card issuer can legally charge interest fees on the unpaid portion.

Benefits of Credit Cards to customers


1.  Convenience

The main benefit to each customer is convenience as carrying a credit card eliminates the need to carry any cash for most purposes.

2. Credit card allows small short-term loans

Compared to debit cards and checks, a credit card allows small short-term loans to be quickly made to a customer who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card.

3. More fraud protection than debit cards

 Credit cards also provide more fraud protection than debit cards. In the UK for example, the bank is jointly liable with the merchant for purchases of defective products over £100.

4. Rewards and benefits packages

Many credit cards offer rewards and benefits packages, such as offering enhanced product warranties at no cost and free loss/damage coverage on new purchases.

Drawbacks of Credit Cards

Compel you to spend more

Credit cards give you the purchasing freedom so they can compel you to spend more than what your budget would allow.

Prone to security issues

Credit cards are prone to security issues, especially when it comes to online transactions. This can be avoided by doing business with websites that employ a secured socket layer (SSL), however.

Interest Rates and Other Applicable Fee

Credit cards impose interest rates and other applicable fees.


Basics of eCommerce

  1. Definition and History of ECommerce
  2. Role of E-Commerce in Daily Life
  3. Classification of e-Commerce Applications
  4. Difference Between Electronic Market and IOS
  5. Types Of e-Commerce


Ecommerce Payment Systems/ ePayment

  1. Types of Popular e-Payment Systems
  2. Explain Credit Card Payment System
  3. Advantages Disadvantages of Credit Cards
  4. Difference Between Debit Card and Credit Card
  5. Types of E-payment Security Schemes
  6. Types of e-Payment Security Protocols

Labels:

Comments

Post a Comment

Popular posts from this blog

Types Of Headings In HTML

HTML Hedings Headings in HTML are used to display Titles, Sub-Titles of Sub-Sub-Titles for your web page text. There are six types of headings in HTML. H1 is the largest heading and H6 is the smallest heading. <H1> is opening tag whereas </H1> is the closing tag for the largest heading. The text between <h1> and </h1> will be displayed as the main Title in your web page. Following are the six tags used for six types of headings in HTML. <H1> ... </H1> <H2> ... </H2> <H3> ... </H3> <H4> ... </H4> <H5> ... </H5> <H6> ... </H6> The H1 heading is used for main titles. Actually H1 heading will show the text in largest font size. H2 headings is used for Sub-Titles. H2 displays text in smaller font size than H1, H3 displays text of font size smaller than H1 and H2, and so on. H1 is for largest heading in a text page and H6 is for smallest heading.   Importance Of Headings in SEO H...
Post a Comment
Read more

Explain Advantages Of Networks

Define Network with examples. Give importance of Computer Network. COMPUTER NETWORK We can define a Computer Network as a set of two or more connected computers to share information and other resources (data, files, printers, hard disk, modem, CD-Rom Drive, CD-Writer, DVD-Rom Drive, DVD-Writer etc.). The computers in a network can share: Data, Information, Files Software Hardware (printers, disk, modems)etc. Advantages of Computer Networks EXAMPLES OF COMPUTER NETWORK Computer network can be used in an office. Different people in the office can share common information and printer. Net Cafes use Computer Network for internet sharing. Net Cafe Owners can save money by sharing one DSL Routers / Modem and a single Internet Connection. Computer Network is used in Computer Laboratories of Schools, Colleges and other educational institutes. Internet, is also an example of a computer network. Internet is a network of millions of computers connected through phone lin...
Post a Comment
Read more

Explain different types of storage devices

Topic: Explain different types of storage devices in Computer systems Storage Devices Storage devices are used to store data and instructions permanently. Storage devices are also called secondary storage devices / backing storage devices / external storage devices or auxiliary storage devices. Examples of storage devices include Hard Disk, CD and DVD etc. Why Secondary Storage Devices are Used? Secondary storage devices are used because: Primary memory(RAM) is volatile and temporary. When computer is switched off, all data in ram is erased. Storage devices can store large amounts of data and instructions permanently whereas Primary memory has less capacity of storing data. Types Of Storage Devices There are three main types of storage devices:  Magnetic Tape   Magnetic Disk   Optical Disk   Flash Memory storage devices 1. Magnetic Tape Magnetic tape is the oldest storage device. It is made of plastic coated with m...
3 comments
Read more