The credit card is a physical identification tool, widely used in the banking sector, it is characterized by being a plastic card with a magnetic stripe, a microchip and a number that stands out. This card is issued by a bank, which authorizes the person to whom said card is issued in order to use it as a payment method in businesses that are affiliated with the system, through its signature and the presentation of the card.
For a person to be able to request a credit card, they must go to a bank, there the person in charge of processing the card will indicate a series of precautions that must be recorded, this is done in order to verify if the person requesting the card is a solvent individual and capable of meeting payment obligations. Among the requested requirements are: a proof of work, receipts for payment of public services, bank and personal references, among others.
Credit cards are called plastic money, since people can buy without having to have cash, immediately acquiring a debt with the financial institution that granted it. The bank sends the person a monthly summary of all the movements made during the month, so that a single payment can be made. However, the user has the possibility of making a single payment or a minimum payment, in this case the deferred debt will accumulate interest in accordance with the agreement in the contract
Currently there are two types of credit cards, there is the traditional one, which is the magnetic stripe and the microchip card, the latter has been becoming very popular since it offers greater security to the user and to the bank that issues it; This is due to the fact that the microchip incorporates electronic protection devices that prevent its violation or reading without approval of the information it encompasses.
These are some of the advantages offered by using credit cards: making purchases online or by phone. Have cash at ATMs. Pay at all affiliated establishments, etc.
