Today is

By: Ikedi Ani-okoye

Introduction to credit cards

Credits card are a very common commodity nowadays, credit cards are used to run the lives of practically every body. Credit cards though simple to use have a networked systems and structures that enable payment through a plastic card, called a credit card they provide minimal chances of misuse and fraud.

What the Credit cards industry consist of

The credit cards Card Provider: credit Cards providers are not that many in numbers. They well known credit cards providers are the following: VISA, MasterCard, JCB, American Express etc. The logos of these credit cards providers are most commonly seen in stores and online payment facilities.

Credit Cards Issuers: Credit cards are most notably issued by financial institutions like banks issue can issue credit cards such as MasterCard or VISA or any other card to card holders. These credit cards have logos of both the financial institution and the card provider.

Credit Cards Acquirers: The credit cards acquirers are responsible for procesing the credit cards accepted by any store and this service is known as credit card processing or merchant account services.

Merchant Account: The merchant or stores have an account with a credit card processing service to enable credit card payments in their store.

The processes of credit cards transcations

When credit card are processed they initiate a flow of information that is store on the account of the user and money exchange between the credit card processing organization, card issuer and the merchant account authorized and conducted by the credit card provider. Credit cards processing services are not soley for credit cards they also process other payment mediums such as: debit cards, electronic cheques, gift cards and other forms of payment.

The credit cards processing organizations perform the major task of authorizing the credit cards when they are presented to the merchant instantly. The credit cards processing organization then debits the card issuers account and credits their account with the amount of purchase made by the card holder.This implies that the card issuer pays the card processing services for the transaction. The card services organization then makes the payment to the merchant after deducting a transaction processing fee.

CONCLUSION

When you you apply for credit cards and your application is accepted never reveal your personal identification number. it is your only security against some body else stealing your credit cards and running up charges at your expense. Check out the credit cards policies and see if they insure you against theft of you credit card or unauthorized payments.