Shopping consumption function
When the expenses of goods and services paid by the cardholder in the process of shopping and consumption exceed the balance of his credit card account, the issuing bank allows the cardholder to make short-term overdraft within the prescribed limit. In essence, this is consumer credit provided by banks that issue credit cards to customers. So we say that credit card has the function of consumer credit. Credit card holders are different from customers who use other settlement methods. Customers who apply for credit cards must go through the bank's credit information and have certain repayment ability. Because the credit card overdraft accounts for a small proportion of the credit card transaction amount, at the same time, the bank has a set of measures to prevent and recover the overdraft risk loss. Therefore, although credit card overdraft can expand the level of social consumption with the help of the function of consumer credit to a certain extent, it does not necessarily lead to the expansion of social consumer credit. The interest charged by the issuing bank for credit card overdraft is higher than the bank loan interest rate in the same period, which shows that the issuing bank uses interest rate leverage to limit the overdraft convenience of credit card holders.
Transfer settlement function
Credit card holders do not need to pay in cash after shopping in designated shopping malls and restaurants, but only need to pay by credit card transfer. Transfer settlement is the most important function of credit card. Credit card has the function of transfer settlement, which can provide the widest settlement service for the society, facilitate the purchase and sale activities of credit card holders and shopping malls, restaurants and other service industries, reduce the use of social funds and currency, and save social labor, so it has received great attention in China.
Save function
Credit card holders can go through the deposit formalities at the savings outlets (or business halls or offices) designated by banks with a wide range of credit cards. It is more convenient to use a credit card to handle the deposit and withdrawal procedures than a savings passbook. It is not limited by the deposit location and savings office, and it can be deposited and withdrawn at all branches and inter-bank institutions of the issuing bank, which greatly facilitates the savings activities of credit card holders and improves the enthusiasm of residents for saving. At the same time, to withdraw cash by credit card, the bank should check the cardholder's ID card and check the cardholder's signature, which is helpful for the issuing bank to maintain the cardholder's capital security.
Microfinance function
Small loans, first of all, credit loans, do not need mortgages. It mainly solves the financial service problem of low-end customers that traditional banks can't serve. Its customers are low-end customers (including productive poor people and micro-enterprises); Because of the particularity of the service object, it is required to provide unsecured credit loans; Because it is a credit loan, the amount must be small and the risks should be controlled; The amount of microfinance in the world is generally measured by the multiple of local per capita GDP. According to the experience of the trading center in managing small loans, it is generally not higher than 5,000 yuan in rural areas and 20,000 yuan in cities. Because it is a small credit loan, it is necessary to have a loan management model different from that of ordinary banking institutions; At the same time, due to the high operating costs and risks of micro-credit loans, it is necessary to charge higher loan interest that can make up for the costs and risks; Finally, due to its particularity, it also requires relatively flexible policies and practices in financial supervision.
At present, bank loans are still the main financing channel for SMEs. It is very difficult for these small and medium-sized enterprises with high operating risks, uncertain development prospects and difficult mortgage guarantee to obtain bank loans. Even if they can get the loan, they may have missed the business opportunity.
Credit card cash withdrawal function
In recent years, with the gradual popularization of credit cards, banks have launched the "cash withdrawal from credit cards" service, but this service is not for consumers to withdraw money to buy a house, but for emergency needs. Many citizens have the experience of borrowing money from others, and the cost is often not very large, maybe one or two thousand, at most tens of thousands. But the taste of borrowing money is unpleasant, and it is not worth looking for a bank loan for this money. Therefore, from the perspective of providing humanized services to customers, banks have opened the function of "cash withdrawal by credit card". As long as it is not a large amount of money, it can be taken directly at the counter or ATM, which is very convenient.
Foreign exchange settlement function
When a credit card holder goes out for a trip or business trip and needs to collect money in a different place, he can go through the deposit formalities with the card in a different inter-bank network institution, and the bank will remit the money back to the local cardholder account. When you use money, you can use your card to go through the withdrawal procedures at member banks around the country. You can also use the card to transfer the money to another place, and then use the card to pay for the transfer settlement.
Installment payment function
Credit card installment payment refers to the business that when a cardholder uses a credit card to make a large amount of consumption, the issuing bank pays the consumption funds of the goods (or services) purchased by the cardholder to the merchant in one lump sum, and deducts the consumption funds through the cardholder's credit card account in stages according to the cardholder's application, and the cardholder repays the money according to the monthly recorded amount.
Most domestic banks have credit card installment business, and installment payment is generally divided into POS installment, "mail order installment" and "bill installment" through the Internet and mail according to different occasions.
1. Shopping center installment payment
Shopping mall staging, also known as POS staging, means that cardholders go to shopping places, such as shopping malls that can be staged. When you check out, you need to pay by installment with a credit card supported by the mall. Then the cashier will swipe the card on the special POS machine according to the number of periods required by the cardholder (such as 3 periods, 6 periods, 12 periods, etc.). , and a few shopping malls support 24) to complete the installment payment.
2. mail order installment payment
It means that the cardholder receives the installment mail order catalog manual sent by the issuing bank (or the online installment mall of the bank) and chooses from the limited commodities. Then the bank orders in installments through online installment mall, telephone or fax installment application form, etc. Generally, there is no handling fee for mail order installment regardless of the number of installments. However, due to the long ordering cycle (in many cases, it takes more than 15 working days to get the goods), and the return is relatively complicated. It is recommended to compare before buying.
3. Bill installment payment
This is the most convenient staging method, which can be basically supported by all issuers, and the application is simple. Users only need to apply to the issuing bank for installment by phone after spending their credit cards and before sending monthly bills. However, it should be noted that banks will stipulate some special circumstances, such as speculative credit cards can not be successful in installments. So before the trial run, be sure to read the trial run manual carefully.
The disadvantage of bill installment is that it can't exempt the handling fee. The longer the number of installments, the higher the handling fee, and the cardholder must bear it himself.