Payments by credit cards. Credit card: terms of use, payment methods, benefits

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Debit or credit cards are in everyone's wallet today. The number of issued credit cards is growing year by year. Its presence helps in solving some financial problems. However, in order for the use of a credit card to be the most effective and profitable, it is necessary to take into account some nuances.

What is a credit card?

A credit card is a plastic card with a limited amount of borrowed funds issued by a banking organization. This type of card has become widespread, as it allows you to make purchases even in the absence of your own funds. The emergence of credit cards competed with consumer loans in the service market.

In this article, we will look at how credit card payments are made.

Card selection and design

Recently, credit card loy alty has become unprecedented. It got to the point that some banks send the card by mail, and even the housethere is no need to leave. The usual practice of most banks is to request a passport and a statement of the client's income. In some cases, additional documents such as a driver's license or foreign passport may also be required.

However, more and more banks are opening online services for applying for a credit card. There are also home delivery services for the finished card. However, the rule applies here: the simpler the registration and receipt, the more expensive the loan will be for the borrower. The easiest way to get a card is if you have already established yourself as a trustworthy borrower and use other offers of this organization. Credit card payments are very popular now.

Loan amount

A banking organization sets a limit on the amount of the loan based on its estimated solvency of the applicant. Each individual bank calculates the limit in its own way, taking into account factors such as social status, age, place of employment, availability of loans in other organizations, etc. commissions, which will ultimately affect the profitability of the loan.

What to look out for?

The main thing to pay attention to when applying for a credit card is:

1. Grace period and bank calculation option.
2. Charging additional fees.
3. Presence of pen alties for early repaymentdebt.
4. Additional services and services, as well as their cost.

Features of use

Grace period on a Mastercard or Visa card is a period of time from the moment a credit card is used, for which the bank does not charge interest. However, in this case, you should carefully study how the grace period is calculated. There are two calculation options:

1. The countdown starts from the moment of the first withdrawal of funds. Thus, even if the client has withdrawn money several times, the grace period is calculated from the moment of the very first card transaction. To start a new grace period, you must fully pay off the debt on the card.
2. Grace period is calculated for each transaction.

About the grace period

When paying by credit cards, the longest grace period for debt repayment is 55 days. Such a service is very beneficial for the borrower, as it makes it possible to use credit funds free of charge, subject to the full repayment of the debt within the period specified by the bank. The grace period does not always apply to individual card transactions. Some banks limit the use of the grace period to purchases from specific partner firms. All of the above features must be mandatory spelled out in the credit card agreement. Now it is even possible to pay for a taxi with a credit card.

Conditions in the contract

Conditions under which the borrower canwithdraw money from a credit card, should also be detailed in the contract. Withdrawing cash from a credit card most often involves an additional fee. The Bank may determine a cash withdrawal limit. The standard limit is one day, but it can be canceled by contacting the bank. If you plan to withdraw a larger amount than the limit, you need to contact the bank.

Where can I pay?

Now almost all regular stores have a credit card terminal.

But they are often used for shopping in online stores. To perform this kind of operation, the data of the cardholder is indicated, including the expiration date and identification code. The latter consists of three numbers and is located on the back of the card. It may not be on the cards of the Visa Electron Maestro system. Mastercard and Visa cards have this code. You cannot tell it to anyone, as this will enable fraudsters to make purchases with the card.

Minimum payment

Most often, the bank provides a minimum payment that must be paid monthly. As a rule, this is 5-10 percent of the loan amount. Sometimes card payments are fixed. Interest begins to be charged at the end of the grace period. The rest of the amount will be credited to the card account and available for the next use.

Paying with a Sberbank credit card is very simple. It is accepted at all payment points.

Commission

Additional commissions are integralpart of the total cost of servicing the loan. These fees apply in the following situations:

1. Cash withdrawal through the cash desk in a bank branch or ATM.
2. Additional services, such as online banking, SMS informing, reissuing a lost card, increasing the card limit, etc.
3. Map status. The presence of a large number of bonuses and benefits makes issuing a card more expensive.

This list can be very long, so you should pay special attention to the fare you have chosen so as not to get into an unpleasant situation, for example, when paying for a taxi with a credit card.

Cashback

There is also a phenomenon that has become widespread in Russia not so long ago. This is a cashback or, more simply, a return of a certain part of the money for purchases to the card. The percentage of return may be different for each bank. Sometimes the maximum cashback applies to specific outlets and networks.

There are many different ways to pay with a credit card. The only thing is that you cannot transfer money from it to other cards and accounts.

Conclusions

Thus, in order to get the most out of your credit card, you must:

1. Remember about the grace period and try to pay off the debt before it ends.
2. Try to pay by card only through the terminal or online, so as not to pay for cash withdrawals.
3. If possible, refuse additional services.

We looked at how thecredit card payments.