What is a credit card?

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A credit card is any document that allows the owner, purchase or acquire both goods and services, if you have an amount approved by the issuer’s premises and facilities that are associated with this payment system.

Generally, it is a rectangular shaped plastic card which has a magnetic stripe. Its design is standard, because ISO regulating its shape and dimensions. In the magnetic strip is stored information related to the owner or user of the card and can be used as a method of payment or as a form of credit.

The rates differ depending on their use, as they charge different fees when used only as a payment method when used as a credit instrument. It is important to remember that these cards can not be transferred to another person for use, and always should be made payable to the holder.

The costs and charges made through a credit card are charged on a monthly basis by an issuing institution. This institution issues both capital and credits for purchases, such as interest, fees and insurance that apply depending on the use you give the holder the card.

The use of credit cards has been on the rise over recent years. This phenomenon has occurred around the world, and experts believe that its use has made a great contribution to the economic growth of developed countries, as they have allowed consumers to have more opportunities to obtain goods and services, and thus contribute more money to the local economy.

Today, the use of the cards is so common that it is possible to use them in most supermarkets and shops that are dedicated to the sale of diverse products, as well as to make use of all amenities, go to restaurants , attend concerts, pay a medical consultation, online shopping, etc.. About the latter, the shopping on-line or via the Internet, some banks have developed specialized products to make shopping easier and avoid unnecessary risks, such as credit cards virtual disposable, created minutes before the purchase for the exact amount, and then be removed from the system after the transaction, so to ensure full network security. In any case, if the purchase is made in establishments and recognized pages, the risk of fraud is as low as in the traditional business world.

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