Introduction of Digital Credit Cards

[Hemendu]

I am a 16 year old guy, I am in HSC right now and belong to a commerce field. I have some queries about the card cards. When we decide to purchase anything apart from the cash there have emerged a lot of mode of payments. Cash and Cheques were the old one, but apart from that there is the electronic media as well through which we make payments But can you elaborate the key difference between the debit and credit cards. And I have also heard that some new technology has been introduced in the credit card. Does anyone can answer know answers to my questions. Please elaborate if you do.

[Balamani]

You seem pretty young to use credit cards at this particular age, but there is nothing wrong in gathering the knowledge and you can impart this with your friends as well so they can praise abut your wisdom. A credit can be issued by any financial company against which you can buy products on credit, but later on pay for that purchase along with the due interest pre decided by the issuer of the card.But Most often credit cards are issued by the financial organizations and Banks to facilitate their consumers in buying products and services. Debit card is an alternative of credit card in which the payment of purchases being made by the consumers gets directly deducted from their bank balances. The Customer cannot purchase anything through a debit card unless the customer has enough amount of money equivalent to or more than the price of the product or services in their bank balance.

[Hemendu]

Yes That was a very helpful piece of information you provided. But I did not still understand the core difference ,but are not both things used for payment of purchase. But You did not differentiate them , I was actually interested in knowing about the grace period allowed in one of the cards. An You did not mention anything about the the new electronic card being introduced. IF anyone else knows on this topic then please do not be shy .

[sportsfan81]

Yes Indeed CitiBank has introduced a digital credit card, the size of this card is similar to the standard credit card. It is moreover a gadget than a card, because it has a battery that has a 2 years of durability, a microchip embedded in it , a stripe made of magnet which can be programmed along with two buttons. One button of the two is for normal credit card functioning while the other is to request the issue or the credit card company to request rewards and surpluses , there is a light corresponding to each of the two buttons that lightens up to confirm the the button has been pressed. This Card is also called as 2G card.

[Bindusar]

Purchasing anything using a credit card means you are borrowing money from the issuer of the credit card , which you have to compensate later on.Each Financial organization or credit cards company posses certain laws, mostly there is a grace period of 60 days in which the card holder has to pay for the money being borrowed from the credit card , failing to which the credit card company has the authority to issue a notice to the card holder and take disciplinary actions against the card holder. Debit cards are the alternate way to carry a cash. If you do not wish to carry much cash with you you can simply shop through the debit card , the purchased amount will get deducted or credited form your bank balance. This cards are swiped through a swiping machine. The grace period mostly differs from company to company.