Credit card

A credit card is a card which allows people to buy items without cash. ...
Payment using a credit card is one of the most common methods of electronic
payment. Credit cards are usually small plastic cards with a unique number
attached to an account.
Unlike charge cards and installment loans, credit cards give you a revolving line
of credit, which means that your available credit replenishes as you pay your debt.
For example, if you applied for a traditional loan of $1,000, you would get that
money to use once and pay it off over a set period of time
A credit card is a plastic card that gives you access to credit you can spend to
make purchases, reduce debt, and earn rewards. A credit card may be issued by a
bank, building society, or other type of credit lender
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay
a merchant for goods and services based on the cardholder's promise to the card issuer to pay
them for the amounts plus the other agreed charges.[1] The card issuer (usually a bank) creates
a revolving account and grants a line of credit to the cardholder, from which the cardholder can
borrow money for payment to a merchant or as a cash advance.
A credit card is different from a charge card, which requires the balance to be repaid in full each
month or at the end of each statement cycle.[2] In contrast, credit cards allow the consumers to
build a continuing balance of debt, subject to interest being charged. A credit card also differs
from a cash card, which can be used like currency by the owner of the card. A credit card differs
from a charge card also in that a credit card typically involves a third-party entity that pays the
seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer
until a later date. In 2019, there were 1.5 billion credit cards in circulation in the U.S
A Mastercard is an example of a credit card. A thin, plastic, machine-
readable card with which the cardholder can charge purchases, obtain
cash loans at an ATM, etc. ... The bank or financial institution issuing
the credit card pays the merchant and then sends a monthly bill to the
holder of the credit card.
s
There are six types of credit cards:
• Standard unsecured credit cards.
• Secured credit cards.
• Credit cards for students.
• Small business credit cards.
• Store credit cards.
• Charge cards.
The Benefits of Using Credit
• Save on interest and fees. The biggest benefit of good to excellent credit
is saving money. ...
• Manage your cash flow. ...
• Avoid utility deposits. ...
• Better credit card rewards. ...
• Emergency fund backup plan. ...
• Avoid and limit financial fraud. ...
• Purchase and travel protections. ...
• Don't underestimate the power of good credit.
The cons of spending with a credit card include:
• Paying high rates of interest. If you carry a balance from month-to-
month, you'll pay interest charges. ...
• Credit damage. ...
• Credit card fraud. ...
• Cash advance fees and rates. ...
• Annual fees. ...
• Credit card surcharges. ...
• Other fees can quickly add up. ...
• Overspending.
•

How Credit Cards Work. Credit cards can be used to make purchases online or in
stores and pay bills. When you use a credit card for either one, your card details
are sent to the merchant's bank. The bank then gets authorization from the credit
card network to process the transaction.
Debit card
A debit card is a payment card that deducts money directly from a consumer's
checking account when it is used. Also called “check cards” or "bank cards," they
can be used to buy goods or services; or to get cash from an automated teller
machine or a merchant who'll let you add an extra amount onto a purchase.
How its work
When you open a checking account at a bank or credit union, you usually get
a debit card. A debit card lets you spend money from your checking account
without writing a check. When you pay with a debit card, the money comes out of
your checking account immediately.
A debit card (also known as a bank card, plastic card or check card) is a plastic payment card
that can be used instead of cash when making purchases. It is similar to a credit card, but unlike a
credit card, the money is immediately transferred directly from the cardholder's bank account to
pay for the transaction.
Some cards carry a stored value with which a payment is made (prepaid card), but most relay a
message to the cardholder's bank to withdraw funds from the cardholder's designated bank
account. In some cases, the primary account number is assigned exclusively for use on the
Internet and there is no physical card. This is referred to as a virtual card.
In many countries, such as most of Western Europe, the use of debit cards has become so
widespread they have overtaken checks in volume, or entirely replaced them, and in some
instances, also largely replaced cash transactions. The development of debit cards, unlike credit
cards and charge cards, has generally been country-specific, resulting in a number of different
systems around the world, which were often incompatible. Since the mid-2000s, a number of
initiatives have allowed debit cards issued in one country to be used in other countries and
allowed their use for internet and phone purchases.
Debit cards usually also allow instant withdrawal of cash, acting as an ATM card for this
purpose. Merchants may also offer cashback facilities to customers, so that a customer can
withdraw cash along with their purchase. There are usually daily limits on the amount of cash
that can be withdrawn.

Types of debit card systems

There are currently three ways that debit card transactions are processed: EFTPOS (also known
as online debit or PIN debit), offline debit (also known as signature debit), and the Electronic
Purse Card System.[1] One physical card can include the functions of all three types, so that it
can be used in a number of different circumstances.
Online debit system
Online debit cards require electronic authorization of every transaction and the debits are
reflected in the user's account immediately. The transaction may be additionally secured with
the personal identification number (PIN) authentication system; some online cards require such
authentication for every transaction, essentially becoming enhanced automatic teller
machine (ATM) cards.

Offline debit system[edit]

Offline debit cards have the logos of major credit cards (for example, Visa[2] or MasterCard) or
major debit cards (for example, Maestro in the United Kingdom and other countries, but not the
United States) and are used at the point of sale like a credit card (with payer's signature). This
type of debit card may be subject to a daily limit, and/or a maximum limit equal to the
current/checking account balance from which it draws funds. Transactions conducted with
offline debit cards require 2–3 days to be reflected on users’ account balances.

Electronic purse card system

Smart-card-based electronic purse systems (in which value is stored on the card chip, not in an
externally recorded account, so that machines accepting the card need no network connectivity)
are in use throughout Europe since the mid-1990s, most notably in Germany (Geldkarte), Austria
(Quick Wertkarte), the Netherlands (Chipknip), Belgium (Proton), Switzerland (CASH) and
France (Moneo, which is usually carried by a debit card). In Austria and Germany, almost all
current bank cards now include electronic purses, whereas the electronic purse has been recently
phased out in the Netherlands.
Examples of debit cards : Visa debit is one product. Mastercard mastero, Mastercard Cirruss,
Mastercard Titanium are few examples of debit cards.

Smart Cart, also known as SmartBud.CA on instagram, is a smoke shop based in California. From
cartridges to selling grass, this company is know for having high quality products.
Smartcart is an interactive touchscreen. display affixed to the handlebars of a. shopping cart which will
allow users. to perform the following actions: - Scan items to a checkout list.
Examples of smart carts (trolleys) in retail Customers can scan product barcodes as they shop and pay using
mobile payment before leaving the store. Secondly, the trolley is a navigation device, enabled using ibeacon
and GIS technology, helping shoppers to locate products in-store.

E-money
Electronic money (e-money) is broadly defined as an electronic store of monetary value on a technical
device that may be widely used for making payments to entities other than the e-money issuer. The
device acts as a prepaid bearer instrument which does not necessarily involve bank accounts in
transactions.
Classifications of Electronic Money

Electronic money can be classified into two broad categories:

1. Hard

Hard electronic money is when e-money is used for irreversible transactions, ones that
are highly securitized, and are more or less procedural in nature. They may include
transactions that are drawn through a bank.

2. Soft

Soft electronic money is when e-money is used for reversible or flexible transactions.
There is an increased level of flexibility offered, and users are allowed to manage
their transactions even after payment is processed, like canceling a transaction or
modifying the payment price, etc.

The changes can be made post-transaction within a defined period. They may include
transactions that are passed through payment mechanisms like PayPal,
PayTM, Interac, credit cards, and so on.

Features of Electronic Money

Just like physical paper currency, electronic money also includes the following four
features:

• Store of value: Just like physical currency, electronic money is also a store of
value, the only difference being, that with electronic money, the value is stored
electronically unless and until withdrawn physically.
• Medium of exchange: Electronic money is a medium of exchange, i.e., it is
used to pay for the purchase of a good or when acquiring a service.
• Unit of account: Just like paper currency, electronic money provides a
common measure of the value of the goods and/or services being transacted.
• Standard of deferred payment: Electronic money is used as a means of
deferred payment, i.e., used for the tools of providing credit for repayment at a
future date.
Advantages of Electronic Money

Electronic money offers several advantages for the global economy, including:

1. Increased flexibility and convenience

The use of electronic money brings increased flexibility and convenience to the table.
Transactions can be entered into from anywhere in the world, at any given time, with
one click of a button. It removes the hassle and tediousness involved with the physical
delivery of payments.

2. Historical record

The usage of electronic money is becoming increasingly popular because it stores a

digital historical record of each and every transaction made. It makes tracing back
payments easier and also helps with making detailed expenditure reports, budgeting,
and so on.

3. Prevents fraudulent activities

Since electronic money makes available a detailed historical record of each and every
transaction made, it is very easy to keep track of transactions and trace them back
through the economy. It increases security and helps prevent fraudulent activities and
malpractices.

4. Instantaneous

The use of electronic money brings with it a kind of instantaneousness that has not
been experienced before in the economy. Transactions can be completed in split
seconds with the click of a button from virtually anywhere in the world. It eliminates
problems of physical delivery of payments, including long queues, wait times, etc.
5. Increased security

The use of e-money also brings with it an increased sense of security. To prevent loss
of personal information while transacting online, advanced security measures are
implemented like authentication and tokenization. Stringent verification measures are
also employed to ensure the full authenticity of the transaction.

Disadvantages of Electronic Money

Electronic money comes with the following disadvantages:

1. Necessity of certain infrastructure

To use electronic money, the availability of certain infrastructure is necessary. It

includes a computer or a laptop, or a smartphone, and a stable internet connection.

2. Possible security breaches/hacks

The internet always comes with the inevitability of possible security breaches and
hacks. A hack can leak sensitive personal information and can lead to fraud
and money laundering.

3. Online scams

Online scamming is also possible. All it takes for a scammer is to pretend to be from a
certain organization or a bank, and consumers are easily convinced to give away their
bank/card details. Despite the increased security and presence of authentication
measures to counter online scams, they are still something to be looked after.

Examples of e-money are bank deposits, electronic fund transfer, payment processors, and digital
currencies. ... E-money can also be stored on (and used via) mobile phones or in a payment account on
the Internet. Most common and widely used mobile subsystems are Google Wallet and Apple pay
According to the United States Electronic Fund Transfer Act of 1978 it is "a funds transfer initiated
through an electronic terminal, telephone, computer (including on-line banking) or magnetic tape for the
purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer's
account" ...
What is Electronic funds transfer (EFT)
Electronic funds transfer (EFT) is the electronic transfer of money from one bank account to another, either
within a single financial institution or across multiple institutions, via computer-based systems, without the
direct intervention of bank staff.
According to the United States Electronic Fund Transfer Act of 1978 it is "a funds transfer initiated through an
electronic terminal, telephone, computer (including on-line banking) or magnetic tape for the purpose of
ordering, instructing, or authorizing a financial institution to debit or credit a consumer's account".[1]
EFT transactions are known by a number of names across countries and different payment systems. For
example, in the United States, they may be referred to as "electronic checks" or "e-checks". In the United
Kingdom, the term "bank transfer" and "bank payment" are used, while in several other European countries
"giro transfer" is the common term
How is work
EFTs move money across an online network, either between banks or directly from person to person, and
frequently replace paper-based methods for making payments like checks and cash. EFT speeds money
movement: Businesses can use EFT payment options to get paid faster by their customers.

What is the Electronic Fund Transfer Process?

An EFT transfer is usually very straight forward. There are two parties: the sender of
funds, and the receiver of funds. Once the sender initiates the transfer, the request
channels through a series of digital networks originating from either the internet or a
payment terminal, to the sender’s bank, and then to the receiver’s bank. Senders can
be anyone from an employer, to a business, to an individual paying a vendor for a
service such as electricity. Likewise, recipients can be entities like employees, goods
suppliers, retailers, and utility companies. Most payments are cleared, that is
complete, within a couple days.

3. Types of EFT Payments

FT payment methods vary. Every method of EFT offers ease and fast delivery, which
is why it’s become so popular. While EFT is preferred worldwide, it’s important to
know the various ways one can take part in EFT payments. Here are the most
common types of EFT:

Electronic Checks

In this payment, a digital check is generated upon the payer’s authorization. E-checks
are commonly used for vendor payments.

Direct Deposit

With direct deposit, funds are automatically deposited into an account with little to no
paperwork. This method is popular among employees. While the automatic deposit
requires almost no work on a regular basis, the deposit needs to be set up, and this
requires bank account information for the recipient, among other potential information
for entry.

Phone Payments

This is a casual transaction, and it occurs during a phone call. Usually the payee will
supply their information, typically a card number, to the recipient over the phone. The
transaction will happen on the recipient’s line. The payee does very little after verbal
authorization. This is common for utility payments.

ATM Transactions

A global convenience, ATM transactions occur at electronic kiosks found throughout

cities and banks all over the world. In this case, a person is withdrawing cash from
their bank account by inserting their debit card into a machine, which will transmit
information to the bank, and then process the request to dispense money. It is an
instant transaction.

Card Transactions

During the point of sale phase of a transaction, a credit card or debit card is the most
commonly used form of payment around the world, replacing cash. This can be in
person or online, and entails the swipe, dip, or entry of a card, during which account
information is electronically received and a payment withdrawal is approved, then the
payment is scheduled and processed within a day or two.

Internet Transactions

The internet version of tapping, swiping, or inserting a card involves manual entry
into a point of sale field, followed by clicking a payment button. This process does the
same as the above, processing an approval for payment, and then transferring funds
for payment within a couple days.

Every transaction starts some where in todays global economy,e-commerce is on

the rise.digital payment is the way of today and tomorrow and that means any
business ,large or small needs to take advantage of electronic transaction out there
and for merchents business and consumers its important to know how electronic
money transfers work this is electronic funds transfer explained
Electronic funds transfer (EFT) refers to an electronic financial transaction. ... Examples of
common electronic funds transfer transactions include the following: Automatic teller machines (ATM)
Direct deposit payroll systems
Basic Marketing Concepts
Marketing is the business discipline concerned with developing brands, informing the
public about products and services, convincing consumers to buy specific products,
facilitating transactions and providing after-sale service. Marketing provides the face of
a business, and the only component that most consumers ever come into contact with.
Although marketing encompasses a broad set of concepts and techniques, there are a
number of basic elements that tie all marketing concepts together. Understanding the
underlying fundamentals of marketing can boost your effectiveness as a marketer or a
small business owner.

The marketing concept introduces new fundamentals to the product development equation.
With the marketing concept, businesses begin with market research, looking for unmet needs
in the marketplace and speaking with consumers about what new products they would like to
see before even thinking about developing a product.s
The marketing concept is the belief that companies must assess the needs of their consumers
first and foremost. ... First of all, let us define needs and wants. Needs are basic requirements
for an individual to survive. Some examples are water, food, shelter, etc.
The seven pillars of marketing are
These seven are: products, price, promotion, place, packaging, positioning and people. As
products, markets, customers and needs change rapidly, you must continually revisit these
seven Ps to make sure you're on track and achieving the maximum results possible for you in
today's marketplace
The importance of marketing
Marketing is important because it helps you sell your products or services. The bottom line of
any business is to make money and marketing is an essential channel to reach that end goal.
Creativs explained that without marketing many businesses wouldn't exist
because marketing is ultimately what drives sales.
A marketing plan is a set of orderly actions aimed at achieving specific objective(s) within a given
timeframe. First, you first must have a set of objectives when creating a plan. Second, you should specify
a timeframe (usually a calendar year) within which to achieve your set of objectives.

A good marketing plan is part of a process that involves setting goals, measuring results and
tracking performance. It entails regular review and revision. If the group running the marketing
plan isn't meeting once a month to compare the plan with actual results and make course
corrections, there is no marketing plan.