Credit cards- meaning and types
Credit cards:
The credit card system provide a wide range of products and service to the user. Depending on the necessity of the customer and trade competition, banks issue different types of cards. A brief description of the various types of credit cards is given below.
A. Based on mode of credit Recovery:
1.Revolving credit cards: This type of credit card follows the revolving credit principle. A limit is set on the amount of money one can spend on the card for a particular period.
2.charge card: A charge is not a credit instrument. It is a convenient mode of making payment.
B.Based on status of credit card
1.standard card : Credit cards that are regularly issued by all card-issuing banks are called standard cards . With these cards, it is possible for a card-holder to make purchased without having to pay cash immediately.
2.Business card: Business cards, also known as "executive card", are issued to small partnership firms, solicitors, firms of chartered accountants, tax-consultants and others, for use by executives on their business trips.
3.Gold card:The gold card offers high value credit for the elite.
C.Based on geographical validity:
1.Domestic card:Cards that are valid only in India and Nepal are called"Domestic cards".
2.International card: Credit cards that have international validity are called "international cards"
D.Based on franchise/tie-up:
1.proprietary card: Cards that are issued by the banks themselves, without any tie-up,are called "proprietary card".
2.Master card: This is a type of credit card issued under the umbrella of "Master card"international. The issuing banks have to obtain a franchise from the master card corporation of ,USA.
3.Visa card: This is a type of credit card, which can be issued by any bank having tie-up with visa international corporation,USA.
4.Domestic tie-up card: These are card issued by any bank having a tie-up with domestic credit card brands such as can cared and ind card etc.
E. Based on the issue category:
1.individual cards: These are non-corporate credit card that are issued to individuals generally all brands of credit cards issue individual cards.
2.Corporate cards:These are credit cards issued to corporate and business firms. The executives and top officials of the firms use these cards.
The credit card system provide a wide range of products and service to the user. Depending on the necessity of the customer and trade competition, banks issue different types of cards. A brief description of the various types of credit cards is given below.
A. Based on mode of credit Recovery:
1.Revolving credit cards: This type of credit card follows the revolving credit principle. A limit is set on the amount of money one can spend on the card for a particular period.
2.charge card: A charge is not a credit instrument. It is a convenient mode of making payment.
B.Based on status of credit card
1.standard card : Credit cards that are regularly issued by all card-issuing banks are called standard cards . With these cards, it is possible for a card-holder to make purchased without having to pay cash immediately.
2.Business card: Business cards, also known as "executive card", are issued to small partnership firms, solicitors, firms of chartered accountants, tax-consultants and others, for use by executives on their business trips.
3.Gold card:The gold card offers high value credit for the elite.
C.Based on geographical validity:
1.Domestic card:Cards that are valid only in India and Nepal are called"Domestic cards".
2.International card: Credit cards that have international validity are called "international cards"
D.Based on franchise/tie-up:
1.proprietary card: Cards that are issued by the banks themselves, without any tie-up,are called "proprietary card".
2.Master card: This is a type of credit card issued under the umbrella of "Master card"international. The issuing banks have to obtain a franchise from the master card corporation of ,USA.
3.Visa card: This is a type of credit card, which can be issued by any bank having tie-up with visa international corporation,USA.
4.Domestic tie-up card: These are card issued by any bank having a tie-up with domestic credit card brands such as can cared and ind card etc.
E. Based on the issue category:
1.individual cards: These are non-corporate credit card that are issued to individuals generally all brands of credit cards issue individual cards.
2.Corporate cards:These are credit cards issued to corporate and business firms. The executives and top officials of the firms use these cards.
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