What
is a credit card?
A credit card is a card issued based on a consumer's credit. Credit here means whether or not you have the ability to pay the price, and when issuing a credit card, there is a review by the issuing company.
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Credit cards can be used as a means of payment and payment as an alternative to cash, and products and services can be purchased post-pay within the conditions set for each card (usage limit, etc.).
If you pay with a credit card at the time of shopping, the card company will temporarily take over the payment to the store (for card users, it feels like "payment"). After a certain period of time, the payment will be completed by debiting the user's deposit account to the card issuing company.
> Credit card payment mechanism
■ - Number of credit cards issued and market size ----- The
The number of credit cards issued was approximately 250 million as of the end of 2002. Considering the working population, each person has about 4 cards, but in reality, there are 0 people and 20 people. In addition, the transaction amount is more than 24.6 trillion yen in the amount of credit provided by card shopping and has been increasing in recent years with the number of issued credits.
■ Precautions when using a credit card - Although
it is a convenient credit card, you can pay even if you do not have cash at hand, and you can borrow money in a hurry, but it's convenient Therefore, be careful not to overuse it. It is desirable to use it systematically and within a reasonable range of payment.
It's hard to say that a credit card is a very complimented way to use it by repeatedly creating new cards and spending up to the limit to satisfy your shopping needs. After using your credit card, you may want to keep in mind that you are in debt until the withdrawal from your account is complete. Also, it is not recommended to make a credit card for the purpose of using the card loan slot or cashing slot from the beginning. Please use it systematically.
■ Advantages of Credit card users —– The biggest
advantage of card users is that they can purchase products and services without
cash at hand. There is also security in that you do not have to
carry cash with you when purchasing high-priced items.
■ Advantages of Credit
card merchants —– Credit
card merchants are required to pay a settlement fee of about 3 to 5% of the
sales price to the card issuer. However, we will introduce credit card
payments for the needs of customers who do not have cash on hand or who want to
purchase products in instalments.
In reality, you can sell products to customers who do not have a
product price at the time of sale, so you can expect sales to increase without
missing a sales opportunity. In addition, since the credit card company
pays for the product, you can avoid the risk of uncollected
receivables. The settlement fee to the card company can be said to be the
underwriting fee for the debt collection risk.
■ Advantages of Credit card issuers —– Credit card issuers offer payment fees from card member stores, annual membership fees from card users, and interest rates for instalment payments and revolving payments (instalment fees). ), Earn money with interest rates on car loans and cashing. With the aim of increasing profits from these, each company will make attractive cards in order to acquire card members. Various types of insurance such as travel insurance, points and cash back for shopping, special treatment at restaurants and entertainment facilities, car life support, etc.
Check our previously published article on Elc Uga.
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