Credit Card Application

How Does the Card Work?

When you get your credit card you will receive a credit limit. If you have a cash withdraw facility issued on your card then you will usually have a daily limit of withdrawal from an ATM machine. In most cases there is no limit on transaction value when you are paying for physical goods or services, though the card issuer may request extra security checks if the transaction is unusually high.

When making a purchase in a store the cashier will swipe the card through an authorization machine. This verifies that the card is valid and that there is available credit on it for the transaction. The transaction will then get an approval code. New systems today sometimes require a pin number to be entered also as extra security for the card. Once the approval has been given then the transaction is processed. The shop then bills the credit card company and they will settle the payment. You will then see the transaction appear on a credit card bill that is usually issued to you monthly. This bill will tell you the full balance spent on the card and the minimum payment you must make if you do not intend to pay the full balance all at once.

Here's some information on using your credit card wisely.