What is Credit Card...?

Simply put, a credit card is a piece of plastic that fits easily into your wallet. Well, it’s not just a ‘piece of plastic’; is a very strong piece of plastic that can be considered a kind of pressed currency. We can define credit cards as a credit system that allows a consumer to borrow money by air from a bank or financial institution and use it to pay to merchants.

To get a credit card, the consumer needs to complete an application form similar to the agreement between the credit card provider and the credit card buyer. The credit card supplier approves the application form and provides the consumer with a small piece of plastic (i.e., credit card). This plastic (or credit card) contains electronic encrypted security information that is in the form of a magnetic field (usually found on the back of the credit card). This information is used to authorize payments whenever a consumer uses a credit card. The consumer can use a credit card to make purchases at retail stores or online etc. Yes, this is less than the merchant's ability to accept credit card payments. However, accepting credit cards is not enough. The merchant must be able to accept credit card payments issued to the credit card organization (credit card holder) i.e. VISA, MasterCard etc. You can also use a credit card to understand.