Credit Cards
A credit card is a system of payment named after the small plastic card issued to users of the system. Credit cards are one of the major methods of cash transactions in today’s world. They have a lot of advantages over cash as one need not carry cash for purchases. It is also helpful as you can shop and spend money even when you don’t have that much balance in your account. In the case of credit cards, the issuer lends money to the consumer (or the user) to be paid to the merchant. You can pay the amount back later in instalments if necessary. Also there is no burden of carrying around huge sums of money in your pockets. They are also the major medium for online purchases which have become very popular nowadays.
Credit Cards also have their disadvantages. If someone manages to get your credit card number, he can use it to purchase items for himself via the internet. If you credit card gets stolen, the thief can use it for purchases. In case of credit card loss, one must inform the issuer as early as possible. Most internet fraud is done through the use of stolen credit card information which is obtained in many ways, the simplest being copying information from retailers, either online or offline. Also the amount paid for a credit cash transaction is mostly higher than ready cash purchase as the issuer always levies interest for the credit issued.
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