What is the concept of credit card?

Bank cards are divided into credit cards and debit cards, and credit cards are divided into credit cards and quasi-credit cards. Debit cards are ordinary savings cards, which are current deposit accounts and can be used for consumption, ATM deposits and withdrawals, etc.;

Credit cards can be used for consumption, ATM deposits and withdrawals, etc. The biggest advantage is that they can be overdrafted ( There is a certain credit limit).

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A credit card refers to a credit card in which the issuing bank gives the cardholder a certain credit limit, and the cardholder can consume within the credit limit first and repay later.

A quasi-credit card refers to a credit card in which the cardholder first deposits a certain amount of reserve fund as required by the bank. When the reserve fund is insufficient to pay, the cardholder can overdraw within the credit limit specified by the card-issuing bank.

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Debit cards are divided into debit cards, special cards, and stored-value cards according to different functions. Debit cards cannot be overdrawn.

The debit card has the functions of transferring money, depositing and withdrawing cash, and spending money.

Specialized cards are debit cards used in specific areas and for special purposes (referring to purposes other than department stores, restaurants, and entertainment industries). They have the functions of transferring funds, depositing and withdrawing cash. A stored-value card is a prepaid wallet-style debit card in which the bank transfers funds to the card for storage at the request of the cardholder and directly deducts funds from the card during transactions.

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The following are the differences between the two cards:

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1. Credit cards are (consumer credit products) first To repay after consumption, the debit card must be deposited first and then used;

2. Credit cards can be overdrafted, but debit cards cannot be overdrafted;

3. Credit cards have a revolving credit limit, and debit cards have a revolving credit limit. There is no revolving credit limit for credit cards; (Revolving credit is the limit that the bank has approved for the cardholder. The cardholder does not need to repay the balance in full if he uses it within the limit. He only needs to pay the minimum repayment amount stipulated, and he can maintain the credit limit. If the credit record is good, the cardholder's credit limit can be reused again)

4. If the credit card holder repays the payment in full before the final payment date, he or she will enjoy an interest-free repayment period for shopping purchases. ;

5. Credit card deposits do not accrue interest, and debit card deposits are accrued at savings interest rates;

6. Credit cards are asset businesses, and debit cards are liability businesses;

7. Credit card issuance must meet relevant conditions (such as the situation of the work unit, assessment of repayment ability, review of personal credit record, etc.), and debit cards only need to have an ID card;

8. Credit cards have anti-counterfeiting logos and UnionPay logos, while debit cards only have UnionPay logos.

What are the differences between the concepts of bank credit cards and debit cards and the card swiping process?

You don’t need to deposit money into a credit card. The bank gives you a certain limit, which you can spend in advance. That is, you can spend this month and pay it back next month.

Debit cards are common savings cards that we need to deposit money into. You can only spend money by depositing money into it. When the balance is 0, you cannot spend money.

To put it simply, a credit card can be used for consumption without depositing money into it, while a debit card can only be used after depositing money. There is no difference in the card swiping process, they are all the same.

Debit cards, often called savings cards, are mainly used for saving deposits. Through the electronic payment network established by the bank and the card's magnetic stripe reading and manual password entry, cardholders can realize card consumption, ATM cash withdrawals, transfers, and various types of payments. Debit cards issued by most banks can support multiple accounts and multiple currencies in one card. Depositors can set up current, fixed-term, local currency, and accounts in the same card to facilitate centralized management of funds. Expenses made through the card are equal to the reduction in the balance of the savings account. The account balance is zero and the payment effect of the card is also reduced to zero. Debit cards must be traded through bank counters, self-service ATMs, merchant POS machines, online banking and other channels, and the transaction password needs to be entered during transactions.

Credit cards are special carrier cards with consumer credit issued by commercial banks to individuals and organizations. They can use them to shop and consume with special organizations and deposit and withdraw cash from banks. It takes the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back.

Its main function is a small overdraft loan, which can be used for consumption or cash withdrawal. The application must meet certain conditions, and the size of the overdraft balance is determined by the bank based on the applicant's personal credit status. Credit cards can be divided into two types: credit cards and quasi-credit cards according to whether a reserve deposit is deposited with the card-issuing bank. A credit card refers to a credit card in which the card-issuing bank grants the cardholder a certain credit limit, and the cardholder can consume within the credit limit first and repay later; a quasi-credit card refers to a credit card in which the cardholder must first deposit money as required by the card-issuing bank. A certain amount of reserve fund. When the reserve fund account is insufficient for payment, a credit card can be overdrawn within the credit limit specified by the card-issuing bank.

What are the concepts between UnionPay cards, debit cards and credit cards?

1. UnionPay card: Simply put, it is a card that is paid through China UnionPay settlement. It can be a credit card or a debit card.

Definition: UnionPay cards refer to bank cards that comply with unified business specifications and technical standards and have the word "UnionPay" printed on them at designated locations. The purpose of launching the "UnionPay" logo is to provide a unified identification mark for various automatic teller machines (ATMs) and point-of-sale terminals (POS) to accept bank cards issued by commercial banks, so that bank cards issued by different banks can be It is common on ATMs and point-of-sale terminals with the "UnionPay" logo, providing consumers with convenient, fast and safe financial services.

2. Debit card: It is a debit card, which is the card we usually use to save money.

Definition: Debit Card refers to a bank card that deposits first and then consumes (or withdraws cash) without overdraft function. According to their different functions, they can be divided into debit cards (including savings cards), special cards and stored-value cards. Debit card is a credit tool with functions such as transfer settlement, cash deposit and withdrawal, shopping and consumption, etc. It also has many additional functions such as transfer, fund buying and selling, stock trading, payment, etc., and also provides a large number of value-added services. Debit cards can also be used for transfers and withdrawals through ATMs. Overdraft is not allowed, and interest is calculated on the amount in the account based on current deposits.

3. Credit card: Credit card can be used for purchases in advance and has an overdraft function. You can spend money first and repay later. Credit cards include single UnionPay, dual-currency or even multi-currency credit cards.

Definition: 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. It is issued to the cardholder by the bank or credit card company based on the user's creditworthiness and financial resources. The cardholder does not need to pay cash when using the credit card to make purchases. Make further repayments. Except for some credit cards combined with debit cards, general credit cards are different from debit cards and ATM cards in that credit cards will not directly deduct funds from the user's account. In February 2012, the bank confirmed that credit cards without passwords are more secure, and they share the responsibility for any fraud. Enjoy an interest-free period of 25-56 days (or 20-50 days) and pay back on time without any interest charges.

What is a credit card? What are the functions of a credit card? What are the pros and cons? What precautions should be taken when using it?

I believe many friends are familiar with credit cards. This is a commonly used payment method. The purpose of the credit card itself is to lend it to individuals for business consumption in various places. Its advantage is that it can quickly meet consumer needs. Of course, it can also bring disadvantages such as excessive consumption and personal credit impact. When using, pay attention to handling the card, activate it in time, do not borrow the card when using it, and control the amount of consumption.

Credit card is a payment function that can be used for consumption

Nowadays, it has become a general trend in society to have a credit card. People with a certain financial ability will have a credit card. Credit cards are a good thing and they come in many types. Depending on the type of payment, credit cards can be divided into credit cards and debit cards. According to the status of the cardholder, they can also be divided into ordinary cards, platinum cards and black gold cards. The main function of a credit card is actually payment. It is a kind of credit payment that can provide consumers with certain consumption functions. Cardholders can use their credit cards to make purchases conveniently and quickly to meet their needs.

Uses of credit cards, working capital

Using credit cards correctly can help you accumulate personal credit, and credit cards can provide convenience to consumers during their use. When spending money at some merchants specially appointed by banks, you can enjoy larger discounts. The most important point is that you can overdraft in advance to satisfy your own consumption desires. You can also turn around funds in the short term. When using a credit card, you should pay attention to regular repayments to avoid exceeding the repayment period and causing a serious impact on your credit.

Disadvantages of credit cards: blind consumption, affecting credit

Credit cards have many advantages when used, but of course there are also disadvantages. The main disadvantage is that it is easy to Consumers bring blind consumption. Under normal circumstances, the credit card limit that consumers can get is relatively high. When using it, if they cannot control their consumption desires well, it will lead to blind consumption or excessive consumption. Once the money is paid out first Later, if the repayment ability is insufficient, overdue loans will occur, which will have adverse consequences.

In addition, if the credit card is not used well, the overdue record will be uploaded to the central bank's credit system. Even if the debt is replenished later, the record will remain for five years. , any credit business handled later will be seriously affected.

Use credit cards correctly, activate them first and don’t borrow them

Credit cards are a double-edged sword. If used properly, they can help us advance consumption. After applying for a credit card, the cardholder must first activate and use the applied credit card, which can be activated directly on a mobile phone or at a branch. Under normal circumstances, no annual fee will be charged in the first year of using the credit card. Later, you can use multiple swipes. to reduce the annual fee.

When using a credit card, remember to use it yourself and do not lend the credit card to others. To avoid overdue situations, the principal cardholder will be held liable. The consumption limit must be controlled appropriately. Spend according to your repayment ability, and do not cause excessive overdue payments.

In short, credit card is a method of payment that can basically satisfy consumers’ personal shopping desires and can also provide short-term working capital. However, it should be noted that the advantages and disadvantages of credit cards are also very significant. During the use process, you must control your consumption funds to avoid blind consumption that will lead to overdue payments and an impact on your credit.

This concludes the introduction to the concept of credit cards.