Using Credit Cards for Online Shopping

A Credit Card is a small plastic electonic card made according to ISO 7810 standard specification which is used for settling the payments. Issuer of the credit card lends money to the holder which is used for settling the payment.

Credit Card issuer ( banks usually ) issue the card to user which will be having a pre-negotiated credit limit. When a purchase is done, the consumer sign a slip in which the amount to be paid, along with details of credit card will be mentioned.

The consumer send the details of purchase and the amount owed to credit card issuer is paid in months. The consumer can pay minimum portion of the bill by due date or any amount above the minimum amount. The credit provider charge an interest on the credit amount. If the amount is not paid within due date the interest rate jump up or if it is paid within due date credit issuer may waive the interest.