Independent research Essay Example | Topics and Well Written Essays - 2000 words

Independent research - Essay ExampleThe credit invoice involve much risk such as theft, fraud, misuse of personal information, etc. however these risks put up be managed by paying just a little attention to once financial order and the get power. The notice holder must communicate his rights and obligations to the issuing authority which strengthens their relationship and reduces risks (Anderson & Schroder, 2010). Credit card offered by the tills Credit separate are offered by the confides to their customers, through whom they can make retributions for online products, in shops, products use fitted with the telemarketers, for paying bills of hotels and resorts, for paying fare, etc. As indicated by name they are based upon the credit system, the substance abuser of the card would have to pay interest to the bank whenever he makes payments through the credit card. The issuer of the card is the Bank itself which allows the consumers a continuous balance of debt with the inte rest payments. The idea of a credit card was emerged somewhere in 1887. The concept of the modern credit card was based on the idea of merchant credit schemes which were employ among the companies to make payments. Later the horizon of the card become wide and it became available to the local public. Initially these cards were made of celluloid plastic but these days mostly polyvinyl chloride (PVC) is used. The credit card holder does non require having an account in the bank. Since the whole process revolves around the concept of credit on that pointfore it is disclose to say that the card owner borrows some amount from the bank to make purchases which are later nonrecreational with an additional amount of interest. People often make purchases without considering their payback power that either they would be able to pay the credited amount to bank or not. Just in case if they are ineffective to pay their credits then they face the consequences of credit card debt. Whenever a purchase is made the card holder enters the personal identification number (PIN) on the basis of which he will pay the Bank in future (Crouhy, Galai & Mark, 2010). Credit cards are often attached with lots of free goods and work that the consumers enjoy on their side whenever they make payments. These services are provided by the banks and different companies. For instance, if you use a credit card of the certain bank, then it will give you several transactional benefits and also easy payment methods. While on the other hand the companies give discounts or additional services to purchase their product. nevertheless to enjoy the extra services customers need to make purchases up to the required limit (Carrol, 2010). Now there are electronic devices available to check the balance and the purchasing power of the card holder instantly. The purchasing power of the card holder can also be analyzed by the security enter printed on the card. This is usually done in online purchases or th e one that are made over the peal where the sales person verifies that either the customer is able to make the payment or not. Every month the card holder receives a bill indicating all of his purchases and the final amount that he has to pay to the Bank. If the card holder is also having an account in the same bank then the unpaid balance is deducted from their differently he can choose to make the payment later with a late fee or additional interest amounts. Regulatory aspect of credit cards In 2009, President Barrack Obama sign(a) the credit card