1.What are credit cards. 2.History and specifications of credit cards. 3.Eligibility of getting the card. 4.Particular displayed on credit cards. 5.Know your cards. 6.Types of credit cards. 7.Credit card transaction process. 8.Advantages and disadvantages. 9.Safety tips. 10.References

1. Credit Card
PRESENTED BY:
PIYALI GOSWAMI

2. Table of Contents:
 What are credit cards.
 History and specifications of credit cards.
 Eligibility of getting the card.
 Particular displayed on credit cards.
 Know your cards.
 Types of credit cards.
 Credit card transaction process.
 Advantages and disadvantages.
 Safety tips.
 References

3. What are credit cards?
 A credit card is a payment card issued to
users as a system of payment. It allows the
cardholder to pay for goods and services
based on the holder's promise to pay for
them.

4. History and specifications of
credit cards:
 The concept of using a card for purchases was
described in 1887 by Edward Bellamy in his
utopian novel Looking Backward. Bellamy used
the term credit card eleven times in this
novel, although this referred to a card for spending
a citizen's dividend from the government, rather
than borrowing .
 The size of most credit cards is 3 3⁄8 × 2 1⁄8 in
(85.60 × 53.98 mm), conforming to the ISO/IEC
7810 ID-1 standard. Credit cards have an
embossed bank card number complying with the
ISO/IEC 7812 numbering standard.

5. Eligibility for getting the card:
Persons should have a savings current
account in the bank.
His assets and liabilities on a particular
date are reported to bank.
A statement of annual or monthly
income.
He is considered credit worthy up to
certain limit depending upon his

6. Particular displayed on credit
cards:
Name of the
customer
16 digit card number
Validity date
The hologram and
the logo
Name of the issuing
bank
Signature period
Magnetic strip
PIN

7. Know your cards:
 The bank identification number
The first six digits is the bank identification number (BIN) or issuer
identification number (IIN) to identify the issuer of the card.
 The account number
The number between the bank identification number and the
check digit is 6 to 9 digits long and is used to identify the
individual account number.
 The check digit
The last digit is the check digit and is added to validate the
authenticity of the credit card number.

8. Types of Credit Cards:
 1. The Standard Credit Card: These are general purpose
credit cards with revolving balance.
 2. Reward Credit Cards: These cards offer several
rewards programs in the form of cash, points or
discounts, and are intended to influence your spending.
 3. Secured Credit Cards: Also known as pay-as-you-go
cards, their primary purpose is to give people with bad
credit history a chance to reestablish credit.
 4.Charge Credit Cards: Charge cards do not have a
preset spending limit and balances must be paid in full at
the end of each month.

9. Credit Card Transaction
Process:

10. Advantages:
 Convenience--Credit cards can save you time and
trouble--no searching for an ATM or keeping cash on-
hand.
 Record keeping--Credit card statements can help you
track your expenses.
 Low-cost loans--You can use revolving credit to save
today (e.g., at a one-day sale), when available cash is a
week away.
 Instant cash--Cash advances are quick and
convenient, putting cash in your hand when you need it.
 Purchase protection--Most credit card companies will
handle disputes for you.
 Balance surfing--Many credit card companies offer low
introductory interest rates.

11. Disadvantages:
 Overuse--Revolving credit makes it easy to spend
beyond your means.
 Paperwork--You'll need to save your receipts and check
them against your statement each month.
 High-cost fees--Your purchase will suddenly become
much more expensive if you carry a balance or miss a
payment.
 Unexpected fees--Typically, you'll pay between 2 and 4
percent just to get the cash advance
 No free lunch--The high interest rates and annual fees
associated with credit cards
 Deepening your debt--Consumers are using credit more
than ever before.

12. Safety tips:
DO THIS...
 Do sign your plastic cards with
permanent ink immediately upon
receipt.
 Do memorize your card PIN.
 Do remember that your credit
cards and check cards are as good
as cash.
 Do carry only the cards you plan to
use.
 Do store unused cards in a secure,
locked place.
 Do review all plastic card
transactions carefully, and
immediately report anything you
find unusually
 Do inventory all plastic cards and
 Do notify the post office to put a
hold on your mail when you're out
of town
 Do routinely check your credit
report for any unusual or
unrecognizable activity.
 Do routinely check your credit
report for any unusual or
unrecognizable activity.

13. Safety tips:
DON'T DO THIS...
 Don't loan your cards to anyone!
 Don't keep your Social Security
number in your wallet.
 Don't keep personal information in
your desk at work.
 Don't give your card, card
number, Social Security number or
PIN to anyone.
 Don't write your plastic card
number on a personal check.
 Don't give pertinent personal
information such as account
numbers, your Social Security
number, or PIN over the phone.
 Don't allow your card out of sight
during a sales transaction.

14. References :
 http://www.capitalprocessingnetwork.com/credit-
card-process.htm
 http://www.mobilefish.com/services/credit_card_n
umber_generator/credit_card_number_generator.
php
 http://www.360financialliteracy.org/Topics/Credit-
and-Debt/Credit-Cards/Advantages-and-
Disadvantages-of-Credit-Cards
 http://www.diffen.com/difference/Credit_Card_vs_
Debit_Card
 http://en.wikipedia.org/wiki/Credit_card