ZIMSEC O Level Commerce Notes: Money and Banking: Credit Cards
Bank Credit Cards
- They all a customer or cardholder to buy on credit up to a limited amount on card.
- Are used to draw cash from the customer’s bank account.
- Guarantees limited cash withdrawals at other banks.
- Allow the customer to obtain loans from any bank operating the scheme.
- The customer does not need to carry cash around.
- Used for encashment of cheques at any of the bank’s branches or correspondent banks.
- Used in both foreign and home trade.
- Allows customers to pay several bills using one cheque once a month thus saving on bank charges.
- Guarantees payment of cheques drawn by the customer.
- Enables a request of statement on account.
- Uses a PIN (Personal Identification Number) for security.
- Can be used to transfer funds from one account to another.
- Allows the provision of an overdraft facility.
- The credit card shows the following information:
- The name and signature of the card holder.
- The name of the issuing bank.
- The expiry date of the Card.
- The terms and conditions of use.
- The card/account number.
- The CVV number
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