Credit card –
credit card is the “postpaid” or “pay later” card that draws from a credit line money made available by the card issuer (bank) and gives one a grace period to pay. If the amount is not paid full by the end of the period, one is charged interest.
A credit card is nothing but a very small card containing a means of identification, such as a signature and a small photo. It authorizes the holder to change the goods or services to his account, on which he is billed. The bank received the bills from the merchants and pays on behalf of the card holder.
These bills are assembled in the bank and the amount is paid to the bank by the card holder totally or by installments. The bank charges customer a small amount for these services. The card holder need not have to carry money/cash with him when he travels or goes for purchasing.
Credit cards have found widespread acceptance in the ‘metros’ and big cities. Credit cards are joining popularity for online payments. The major players in the credit card market are the foreign banks and some big public sector bank like SBI and bank of Baroda. India at present has about 3 million credit card in circulation.
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