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Today credit cards have found massive usage due to the convenience they offer. Unlike the old days, you do not have to carry cash all the time. Whenever you go out for shopping, all you need to do is take your credit card with you, shop whatever you want, swipe your credit card at merchant’s machine and walk out with your purchase. Simple, isn't it? In addition to the simplicity, Card issuers offer many type of benefits like cash back, reward points, interest free credit and discount offers on purchases made at select stores. All this makes it attractive to use a credit card in lieu of cash for your purchases. If you are wondering, "What happens after I swipe my card at merchant’s machine?", then read on to know more.
When you hand over your credit card to the cashier to pay for your purchases he takes it and swipes it in the merchant's point of sale (POS) system. This system is connected to the merchant's bank via a communication link. This POS system helps in verifying your data by using an electronic verification system. The details verified include the validity of your card and the availability of sufficient balance on your credit card to pay for the purchases.
Once your details are transmitted to the merchant's bank, they are sent to your bank which then authorizes the payment if all the details are in order. This authorization is then sent to the merchant's bank, which then blocks the amount from your credit limit so as to reimburse it to the merchant later on. The authorization generates an approval code and is transmitted to the merchant. This code has to be keyed in by the cashier, after which two copies of charge slip are generated. This charge slip is your agreement to pay your issuing bank the amount of purchase. You then sign one copy of the charge slip and take the other one with you, along with your purchase.
Just like you, there are many others who use credit cards for their purchases. They also generate their own charge slips. All these charge slips are stored in batches and submitted by the merchant to his bank, once a day at the end of the working day. But remember, the nature of the relationship of the merchant with his bank is far different from your relation with your bank. It is called a merchant account and is actually a line of credit rather than a regular account. As per this contract, the bank agrees to undertake collection of payments on behalf of the merchant from his customers' banks. These payments are credited to the merchant's bank accounts after deducting the fees for all the services involved.
When the merchant deposits these batches in his bank, they are sent by the merchant's bank for clearing and settlement through the credit card association. This association charges your purchase amount to your bank and pays the amount to the merchant's bank. The merchant's bank then reimburses this amount to the merchant.
Your bank now charges your purchase amount to your credit card account. On the specific date, your bank will generate an account statement, listing all the credit and debit transactions in your account. If the debits are higher than credits, you have to pay the difference to your bank. You will also be given a due date, which is the last date by which you have to repay your bank in full. Failure to pay off this amount in full by due date will mean you will have to pay late fees as well as interest charges to the bank. These fees and charges can be very high, so be very careful.
Credit cards are a powerful credit tool to help you tide over short term financial requirements. However they must be used judiciously, as any misuse of the credit card can lead to high charges and make you fall into a debt trap, besides dropping your credit score drastically. So the watch word is - BE DISCIPLINED TO REPAY your credit card!
As the time is changing, the credit card providers have started tailoring their cards as per one’s requirements.
Amex as an American multinational financial service provider is a pioneer in providing credit cards with several attractive variants that are irresistible. Guess what? You get a card for shopping, for lifestyle, for travel, to access lounges and above all you are entitled to earn reward points and loyalty points that can easily be converted into a list of rewards, gifts and a bonanza for air miles. Amex has proved itself that it is one of its kind and purely unbeatable. We have cash cards and traveller’s cheques also in line with Amex. Its credit card product line is full of advantages to pull an individual to grab it at one sight. To list down its salient features, we would start with zero lost card liability, attractive offers, variety in its class, 24 x 7 customer support, lavishing membership rewards, an extra count on your pocket with payback features, privileged loyalty points and an extra dose of travel through its air miles offer. So didn’t you have a watery mouth and a screaming pocket? If ‘yes’, then go for it now! Apply through BankBazaar and we promise you to give the best quote and deals for Amex credit card. Try it once and we will be yours!Citibank Credit card
As a division of CitiGroup- Multinational Financial service provider, Citibank is providing its services for credit cards from late back 1812. Its services in terms of credit cards are overwhelmed with attractive features and benefits. It has maintained the race and has offered the credit cards for different purposes and situations. Starting from lifestyle card, shopping card, fuel card and travel card, it has spread its arena in prepaid cards and corporate cards also. With such a boon in credit card industry from last few years, Citibank has grown unbeatably by offering features like good reward points, easy EMI’s, instant loans for your financial obligations and insurance benefits on your credit cards. To avail all such benefits, apply now for Citibank credit card through Bank Bazaar and we will assure you to be in the safer hands. Apply today!IndusInd Bank Credit card
IndusInd Bank is termed as a new generation bank with its roots laid down in India in 1994. Since then, it has engaged its services in several spheres in terms of credit cards including super premium credit cards, premium credit cards, co- branded credit cards and core credit cards with attractive features in terms of golf course membership, reward points, air miles conversion and instant loans for your financial needs. What else you dream for? With an exotic range of services you get a free peace of mind at that point of time when you are in great financial trouble. So, don’t wait and watch the show, just grab the venture! Apply with BankBazaar and take away the relationship that you would never want to leave and this is our promise!SBI Credit Card
SBI being one of the most trusted and demanded bank in India has come out with a long range of its credit cards. Being a pioneer in mostly all the product lines of commercial banking, SBI has stepped very aggressively in the credit cards business. Now, you will get a privilege of getting crowned with an exclusive range of credit cards and its benefits with SBI. A bunch full of varieties like premium cards, shopping and travel cards, classic cards and exclusive cards. SBI has bundled all of them with an amazing range of benefits like free movie tickets, best in class concierge services, lounge access facilities, balance transfer facility, flexi payment in EMI’s, reward points, online bills payment through pay net and paytm and many more on its way. So, are you not willing to crown yourself with these mind blowing features of SBI credit cards? If ‘yes’, then go ahead and apply through BankBazaar to get the beat quotes ever.Axis Bank Credit cards
Gone are the days when you will simply look into your empty pockets and was forced to say ‘no’ to your loved one’s demands. Axis bank has come up with a key to your happiness and a lock to your miserliness. Yes, Axis bank offers you with a wide range on its credit cards starting from its infinite range, signature range with flexi payment and travel benefits to its co-branded cards and my cards- exclusively designed for you. And not only this, Axis bank credit cards gives you ample of benefits like dining offers, airport lounge access offers, cash back offers, bills payment facility online, EMI conversion facility and lots more. Want to have one? Then apply through BankBazaar with the facility of comparison, application, personal assistance and a long term relationship. Apply today!HDFC Bank Credit cards
HDFC Bank being one of the top most bank in private sector has already rolled its sleeves to compete aggressively in credit card market. Every now and then, you will get acquainted with some special schemes and offers on HDFC bank credit cards. With its all-time high range of products including featured cards, co-branded cards, super premium cards, professional cards, premium women, premium travel, premium card, regular card, commercial card and cash back card, it is successfully ruling the market and its customer’s pockets. Undoubtedly, the benefits and rewards attached to these cards are also pocket friendly like movie tickets, travel vouchers, Golf membership, air miles conversion, reward points, exclusive range of gifts, Bills payment, EMI facility, cash on call, instant loans, dining offers and many more. So, use the HDFC Bank credit card and fill your pocket with exclusive benefits. Want to try it? Apply with BankBazaar and be the proud owner of HDFC bank credit card!
The Reserve Bank of India (RBI) is cracking down hard on lucrative e-commerce platforms such as Google Play, Amazon and Uber, for their continued adherence to the ‘card not present’ transaction model. The RBI states that all purchases of goods and services within India will have to be done through an Indian bank and the currency used in the transaction should be the Indian rupee. Presently, popular e-commerce platforms such as the ones listed above utilise a global system wherein these companies route credit card transactions through an international payment gateway and completely ignore the two-step verification process that is deemed compulsory by the RBI. This, has resulted in a big outflow of foreign exchange from India.
While acknowledging that the problem persists, the RBI notes that these dealings are made possible by the fact that such merchant transactions have been outsourced to banks that are located overseas, resulting in the exodus of foreign exchange, and a blatant violation of the directive under the Payment and Settlement Systems Act and the Foreign Exchange Management Act, 1999. To curb this menace, the RBI is issuing immediate directives to all involved parties, asking them to modify their business processes in line with the Indian laws and regulation, with the final deadline for such a shift being set at October 31, 2014.
16th October 2014
Visa Inc.’s decision to establish a new technology base in India in 2015 promises to boost employment among the country’s engineers and software developers. A large number of the estimated 2000 new positions, to be created, will be based out of India. The resources that Visa Inc. plans to utilise will serve to create easy access to VisaNet, the company’s proprietary network for processing transactions. The new centre is expected to power transformation in it’s mobile and digital segments as part of its increasing focus on electronic payments.
Visa Inc. will be following in the footsteps of many global financial institutions who have already established similar bases in India to gain an edge over competition through technological innovations.
14th October 2014