Credit Card (English: Credit Card) is a non-cash payment method and a simple credit service. A credit card is generally a plastic card with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm (the size is defined by the ISO 7810 and 7816 series of documents). It is issued to the cardholder by the bank or credit card company based on the user's creditworthiness and financial resources. Cardholders do not need to pay cash when making purchases with a credit card, and repayment will be made on the settlement date. Except for some credit cards combined with debit cards, general credit cards are different from debit cards and cash cards in that credit cards will not directly deduct funds from the user's account.
[Edit this paragraph] Features
General credit card pass features
Consume now and pay later
Usually does not have a deposit function , no interest will be calculated if there is an overpayment
There is interest-free repayment treatment for sales (Sales) transactions, which is generally subject to full payment 20-30 days after the settlement of the month
Interest is generally calculated based on daily simple interest and monthly compound interest
Mainland China
They are all issued by banks
There is a minimum repayment amount
For those who fail to repay the minimum repayment amount on time, punitive interest or late fees will be levied; those who overdraft maliciously will be punished as fraud.
There is no national personal credit information collection agency, so the review is more complicated. In addition to providing identity documents, you are often required to provide proof of employment, property, financial resources, and sometimes a guarantee.
A kind of credit card called "quasi-credit card" has the following characteristics: interest is calculated on deposits and there is no interest-free repayment period. It can also be regarded as an ATM card that can be overdrafted.
Hong Kong
They are all issued by banks.
There is a minimum payment amount.
You can apply with your ID card.
In some bank ATMs, inserting a credit card to "check balance" can list the last period's bill information, and it is convenient to repay at any time.
The card-opening gifts are generally more abundant than in other countries, but they often require that the card cannot be canceled within a certain period of time.
The annual fee is generally waived when you open a card (starting from one year). In the future, as long as there is usage and you contact customer service every year, most of them may continue to waive the annual fee every year.
Taiwan
They are all issued by banks.
There is a minimum payment amount.
Apply with dual documents (ID card and another valid government document). Except for students, you will be asked to provide proof of employment or financial resources.
A variety of gifts are available when signing up for a card, and there are many mechanisms to reward customers when paying with a card.
The annual fee is waived when opening a card (starting from one year). In the future, as long as there is usage and you contact customer service every year, most of them may continue to waive the annual fee every year.
As of January 2008, the total number of valid cards in circulation was 19,854,788. [1]
[Edit this paragraph] Classification
According to card issuing organizations: Visa, MasterCard, American Express, JCB Card, Discover Card (Americas), United Credit card (Taiwan), Diners Club, NETS (Singapore), BC card (South Korea), China UnionPay card (mainland China), Banknetvn (Vietnam), etc.
According to currency: single currency card, dual currency card.
According to credit level: ordinary card (silver card), gold card, platinum card, unlimited card, etc.
According to whether jointly issued: co-branded card, standard card (non-joint-branded card) ), approval card.
According to card shape and material: standard card, mini card, special-shaped card, transparent card, etc.
According to information storage media: magnetic stripe card, chip card.
According to the relationship between cards: main card and supplementary card.
According to the identity of the holder: personal card, business card, company card.
In addition, the scope of credit cards in mainland China is different from that in the world. Credit cards in mainland China broadly refer to credit cards and quasi-credit cards; in a narrow sense, they refer to credit cards. That is to say, the narrow sense of credit card in mainland China is consistent with the international credit card. [2]? Credit cards referred to in mainland China include three major categories: credit cards, quasi-credit cards, and debit cards. What is called a credit card internationally only refers to what is called a credit card in mainland China.
The difference between the three is: Credit card holders can overdraft consumption without pre-depositing in the account, and then just repay according to bank regulations, and can enjoy a certain period of interest-free period . To put it bluntly, a debit card is a savings card that requires deposits first and then consumption, and no overdraft is allowed. Quasi-credit cards are credit cards that allow conditional and limited overdraft consumption through some kind of guarantee or pre-deposited deposit in an environment where the social credit system is imperfect. This kind of credit card with "Chinese characteristics" is withdrawing from the financial field.
Application
In most cases, citizens with full capacity for civil conduct (citizens over 18 years old in mainland China), with certain direct financial resources, or without direct financial resources Current college students can apply for a credit card from the card issuing bank. Sometimes, legal persons can also be applicants. The application method is generally by filling out a credit card application form and submitting certain copies of documents and certificates to the card issuer. The application form is accompanied by a credit card use contract. The applicant authorizes the card-issuing bank or relevant departments to investigate its relevant information, and submits a statement of the authenticity of the information, the card-issuing bank's privacy protection policy, etc., and must have the applicant's signature.
Card opening
Since the card is sent by mail after the credit card application is approved, there is no guarantee that the recipient is the applicant. In order to protect applicants and banks from fraud losses, the credit card has set up a card opening procedure before it is officially launched. The card opening process is mainly done by phone or online. The relevant personal information provided during the application is checked. Once the information is met, the card opening process is completed. At this point, the applicant becomes the card holder and can officially start using it after signing on the back of the card.
Issuance
Usually, the bank will judge whether to issue a credit card to the applicant based on the application information and various aspects of the applicant's information and financial situation. Factors considered include the applicant's past credit record, the applicant's known assets, professional characteristics, etc. The specific factors and processes reviewed by the card issuing bank are commercial secrets and are generally difficult for outsiders to understand. The standards of each card-issuing bank are also different. Therefore, the same materials may be issued with different credit limits and different types of credit cards in different banks. Some banks may even approve the application, while others may reject it. .
Identification
The credit card must contain at least the following information:
Front: name and logo of the issuing bank, credit card number (organization logo) and holographic anti-counterfeiting mark, Card number, English or Pinyin name, activation date (generally calculated to month), expiration date (generally calculated to month), the latest issued card has a chip on the front.
Back: Card magnetic stripe, cardholder signature field (must sign after activation), service hotline number, last four digits of the card number or the entire card number (to prevent fraudulent use), credit card security code (on the credit card On the signature line on the back, there are three digits immediately following the last four digits of the card number, used for TV, phone and online transactions, etc.).
Use
Credit cards are usually only used by the cardholder himself. Lending them to others is generally a violation of the use contract.
Swiping cards at POS machines
Swiping cards at POS machines is currently the most common way to use credit cards, and it is a way of swiping cards online. When swiping a card, the operator should first check the credit card's validity period and cardholder's last name and other information. Then, select the corresponding POS machine according to the card issuing bank and the currency type to be paid, and slide the magnetic stripe of the magnetic stripe credit card on the POS machine, or insert the chip credit card into the card slot, connect to a payment gateway such as a bank, and enter the corresponding amount. . After the remote payment gateway accepts the information, the POS will print out a receipt for payment by card (at least two copies). The cardholder should sign the receipt after checking that the information on the payment receipt is correct. After the operator checks the signature on the receipt and the signature on the back of the credit card (including that the name completely matches and the handwriting basically matches), the operator gives the credit card and a copy of the card payment receipt to the cardholder. At this point, the card swiping procedure on the POS machine is completed.
RFID machine taps the card
Tapping the card on the RFID machine is a new type of credit card usage method, and it is also a networking method. When tapping a card, the operator should first check the credit card's validity period and cardholder's last name and other information. Then, select the corresponding card machine according to the card issuing bank and the currency type to be paid, enter the corresponding amount, and place the credit card flatly no more than 10cm above the sensor.
The RFID machine will emit a signal after sensing the credit card, and then continue the operation process. After the remote payment gateway accepts the information, the printer (if connected) will print out a receipt for payment by tapping the card, but unlike the previous method, the cardholder does not need to sign. Faster and more convenient than ever. At this point, the card sensing program on the RFID machine is completed.
Manual order pressing
Manual order pressing is usually used when there is no POS machine or the Internet is not available. The order pressing operation must have a pressure-sensitive copy of the "direct purchase order" (at least two copies) and a telephone number. The inspection work before pressing the order is the same as that of POS machine. The operator then prints the card number, name, etc. raised on the credit card onto the purchase form using a credit card pressing device, and writes the amount, date and other information, and then calls the acquiring bank's authorization hotline to report the card information and apply for authorization. , and write the authorization code obtained on the purchase form, and then the cardholder signs it after confirming it is correct. After the operator checks the signature, he hands the credit card and purchase order copy to the cardholder. At this point, the manual order pressing process is completed. Authorization calls are usually made immediately. In some areas with poor communication or good credit ethics, merchants may encounter situations where the merchant will deliver the goods to complete the transaction after pressing the customer's signature. The authorization will be completed in the future, but the merchant is at risk of encountering credit card fraud (if a customer pays with an invalid card, it will not be discovered immediately without applying for an authorization code immediately).
Online payment
From the perspective of cardholders, online payment is considered to be the riskiest among several credit card payment methods, because people with bad intentions may use Steal user information through phishing, eavesdropping on network information, and fake payment gateways. When paying online, you need to enter the card number, credit card validity period, Visa CVV2 code/MasterCard CVC2 number next to the signature column on the back of the card, online transaction password, sometimes you need to enter your name, verification code randomly generated by the web page, etc. After the input is completed, click Submit to complete the online payment.
TV and telephone transactions
Similar to online payments, card number, validity period, Visa CVV2 code/MasterCard CVC2 and other information are required.
Pre-authorization
Pre-authorization is generally used to pay a deposit, that is, freezing a part of the available credit card limit as a deposit. The process of pre-authorization is similar to that of manual order pressing, but the content of the call requires pre-authorization of the corresponding amount. It does not require payment, and there is no need to press the order. You only need to issue a certificate of receipt of the deposit. Generally, pre-authorization will be canceled by the merchant during checkout. If the merchant forgets to cancel, you can call the merchant to request cancellation. You cannot cancel by calling the authorized agency. Or, wait for the bank to automatically cancel the pre-authorization (usually 7 to 30 days).
Charges
Annual fee or monthly fee (after receiving the new card, if the card is not opened for consumption, no annual fee will be charged (2009-06-01), even if the old card is in a repayment state , annual fees will also begin to accumulate.
Revolving credit interest (in Taiwan, for example, the statutory annual interest limit is 20%)
Cash advance fees
Late payment penalty
Card swiping fee (usually paid by credit card authorized stores: a few stores will require consumers to bear this fee in addition, commonly known as 7% credit card swiping fee)
Security< /p>
Because credit cards are convenient and fast to use, coupled with the rapid development of science and technology, credit cards are facing increasingly serious security problems due to the mechanism of consumption first and payment later. Major international credit card groups and global card-issuing financial institutions have They all face severe challenges. Credit card security issues are mainly divided into the following five aspects:
Credit cards: Criminals or criminal groups use counterfeit or invalid cards (expired/lost/destroyed/tape damaged...etc. ) Pretends to be a genuine card for consumption, directly deceiving merchants or card issuers.
Card holders: Cards are not properly kept/handled improperly (expired/invalid credit cards are not destroyed immediately, or lost cards are not immediately invalidated, etc.). , and personal identity information is unintentionally stolen or defrauded. To avoid such problems, citizens should not easily provide personal identity information to others, and it is best not to entrust others to handle credit cards on their behalf.
Consumer merchants: service personnel. Overspending cardholders during their consumption process, or stealing their credit card information to make purchases at other merchants. This situation may occur whether it is a physical merchant or an online virtual merchant.
Card issuer: The computer system is malicious. Intrusion and stealing of customers’ basic/transaction information are also cases in which internal employees of the organization commit theft or possess miraculous powers.
Trading system and mechanism: As long as it is made or handled by humans, human errors and oversights are inevitable; no matter how rigorous the trading mechanism is, with a world-class trading system from confirmation to settlement, there will still be mistakes. The possibility of invasion, and the so-called "invasion" actually has hierarchical differences.