Credit cards are financial tools that allow cardholders to borrow funds and then repay those amounts at a later time. Credit cards can be used for shopping, travel and emergency services as well as making payments at certain outlets.
Credit cards have become one of the world’s primary forms of payment. Credit cards offer a safe and efficient means of purchasing goods online or making other purchases.
The cardholder
Cardholders are individuals who receive credit cards. In order to meet eligibility requirements and secure one of these accounts, including having a satisfactory credit record and being linked legally with their account holder. Furthermore, these individuals must sign on the card; often times this occurs because some people with no history may not qualify on their own due to being denied credit due to not meeting minimum eligibility standards.
Errors may cause spelling errors to appear on cards, prompting banks to request additional information in order to verify identity and prevent fraudulent transactions. Furthermore, should your name change after applying for a card it’s wise to notify the bank immediately in order to keep transactions secure and avoid issues in the future.
The card issuer
Card issuers are responsible for assessing potential customers’ creditworthiness and issuing them with cards to make purchases. They must also manage accounts to handle any disputes or fraud that arise and must also abide by government regulatory agencies such as the Consumer Financial Protection Bureau (CFPB), which ensures consumers receive fair treatment by banks, lenders and other financial companies.
When cardholders make purchases with their cards, their transactions are sent through to a merchant’s acquirer and then onward to the card issuer, who makes the final determination on whether the purchase should be approved or declined based on complex interactions amongst themselves, payment networks and merchant acquirers. Card issuers also determine the card’s credit limit, interest rates and benefits before providing monthly statements as well as customer support services for customer assistance.
