They perform a series of services that transact and eventually settlement between banks of the CC users and the banks of the merchants.
If you don't pay the full amount the iinterests are charged by the banks not the CC company.
like what azul123 mentioned, they are global payment network service provider. like how ISPs charge site owners for usage of internet service, Visa and Mastercard charge the banks for using their transaction services, that's why end users are charged a service charge by the banks.
Last edited by eikin; 19th January 2007 at 10:05 PM.
VISA Debit card is called Electron and Mastercard has 2 (Cirrus and Maestro).
Lets put in simple way.
Debit Card work along the same as ATM NET Card.
You can purchase stuff overseas via net. (Provided the online shopping had Mastercard logo on it) Whereas ATM NET cannot.
You get to SIGN on receipt using Mastercard and ATM NET using by keying ur PIN.
Once transaction is on, MONEY will be DEDUCTED from your BANK Immediately. So do not take it as future money!
Future Money mean using the money first by using credit card, then pay back to bank. Works only for Credit Card. This is often alot of ppl mis use and led to bankrupt or having high interest.
~Holding on to my card.. wish I dun go CP .... Im scare... ~
oic, so to sum up: it is like ISP(internet service provider), it is a type of service for the bank. and does support debit card facilities. also it is not future money...
Thanks eikin and azul123.
I have only known Visa and Mastercard as credit cards.
I have a Visa card and it is paid out from my Savings account every 30 days automatically by the bank thus no interest on credit.
As I am not familiar with a Debit card, how does it differ from a Savings account card
Care to share any knowledge on this.
Time, is an effortless construction :)
using credit card = spending credit limit base on contract
credit card contract is drawn based on your assets (income, investments, properties etc.) and liabilities (loans, debts, mortgage etc.) , most will require fixed cash deposit in an account linked to the card in case user defaults on payment. bank will issue user a monthly payment request base on the month's spending. people go bankrupt when they spend way way way beyond what they can afford to pay (inclusive of their fixed deposit)
if you want to control your spendings, keep every receipt and do up a personal account book to record your usage of the card. spending is easy when cash is not used in sight.
I may be wrong, but I think there's a distinct difference between debit and credit card. Unlike credit card, debit card is a bit more like NETS, i.e. deducting the amount of money the is actually in the account, instead of the limit set in the credit card (which is usually twice that of the applicant's monthly income). There's a provision though, for you can actually spend more than the money in your bank account, in which you have to pay the interest for the amount "borrowed" (the clause should be stated in the thick rules and regulations booklet that come with the card).
Debit card is quite useful really. Just think NETS, but only in the global scale. And yes, you can get poor with either NETS or Debit, if you don't control. Money is just money...
Maybe I should go get a UOB Mini Debit...
Saving Account Card is an ATM NET card which you can only do NETs and go to ATM to do withdrawal or cash in. This apply to Debit Card as well. It can do everything just like ATM and Credit Card. Just that Debit Card is not like Credit Card which you can 'use' the money first.
Actually, you can drawn cash from credit card ATM (like citibank ATM) using you POSB ATM card. however there is $5 charge per transtion. this is good if you don't like the ideal carry to much cash around when you travel around.
Oh! Just remembered another difference between Debit and Credit card. The card come with pin-number that allow you to withdraw money from (specific) ATM machines. It is really like NETS lor, with the added bonus of signing for bills lah!
They are the 2 richest company in the world. We live in a world that they rule.
Frankly, credit card is not that bad for the conveniences. The issue is really with self-control.