[JohnyBotwick]

Credit cards are given to customers as a payment system for shopping, dining, travel and other various expenses. It allows the card holders to save money and avail facilities like zero percent instalment personal loan, dining offers, credit free period as well as medical insurance. The whole concept of credit cards spin around revolving credit and it provides credit to the customer from which the user can borrow money. A credit card is entirely different from other forms of cash cards, charge cards, and debit cards. Credit cards permit their customers a continuing balance of debt, subject to conditions of interest payment. Today’s credit card is a successor of a great variety of merchant credit schemes of earlier days.
Electronic verification system embedded in modern credit cards allows their merchants to verify that card holder has sufficient funds. Nowadays credit card payments are done using modern technological advancements like electronic commerce, mail order and telephone sales. Interest rate on a particular credit card may increase greatly if card payment is not made on time. The main benefit of a credit card is the absolute convenience and easiness provided by it. Banks give short term loans to their trustworthy credit card holders and this offer is not available for debit cards and charge cards. Experts in personal finance planning opine that stiff competition among credit card issuers may make rewards and offers too liberal. For merchants, a credit card transaction is often more convenient than other forms of payment like pay cheques.