CREDIT/DEBIT CARDS

Today the popularity and need of a credit card is much more than ever, it is a system of transaction settlement and credit system.

A credit card is different from a debit card in that, it does not remove money from the users account with every payment; money is lent to the user by the issuer. Credit cards provide users to �revolve� the balance payable while debit card require immediate settlement, in fact debit card transactions are limited by the amount in the users bank account.

Various types of credit cards are available and differ from each other according to the maximum credit line offered and other additional features.

Gold Credit Cards

A Gold credit card offers a larger line of credit (usually $5,000 and more) than a standard credit card, also coupled with extra benefits or incentives like accident insurance, auto rental insurance. Enhanced fraud protection and security are on offer to cardholders. Some credit card providers give Gold credit card to their customers for purchases on products and services from their own online shopping networks, while some others providers allow users to purchase online and off line worldwide. Common credit card networks are Visa, American Express and MasterCard all of which are accepted worldwide. Restrictions and interest rates of such credit cards are high when compare with that of online shopping (can purchase from their online shop only) gold card providers.

Features of Gold cards

$5000 and more credit line
No employment verification
Gift cards and discount vouchers
Free credit limit increase
No credit check
No income requirements
Free access to credit reports

The main requirements to qualify for a Gold credit card �

Applicant must be at least 18 years old
Must have a valid USA checking or saving account
U.S. citizenship or permanent resident proof

Processing charges and fees

Annual Percentage Rate for Purchases	0%
Variable-rate Information	N/A
Grace Period for Repayment of Balances for Purchases	N/A
Method of Computing the Balance for Purchases	N/A
Minimum Finance Charge	N/A
Transaction Fee for Purchases	N/A
Fees for Paying Late	Depends on provider
Fee for Exceeding the Credit Limit	NA
Fee for Returned Checks/Payments	Depends on provider

The processing and operating charges of these Gold cards are comparatively low. There are no hidden charges and penalties. All Gold cards are come with a fixed credit line and based on punctuality of the card holders in payment, an increase in credit limit is usually offered. Payments equal purchase cost of all goods by the account holder, however, it can �revolved� by paying minimum due amount, at the cost of having interest charged.

ATM Debit Cards

Banks issue debit cards to promote their services and make monetary transaction easy and secure. A debit card provides an alternative payment method to cash when making purchases and is linked directly to a customer's bank account. Debit Card in most instances double-up as automated teller machine card for withdrawing cash, also known as a �check cards�. Debit cards can be used to make payments at merchant establishments equivalent to cash. Although many debit cards are of the Visa or MasterCard brand, there are many other types of debit card, each accepted only within a particular country or region.

Features of Debit Card

Valid worldwide.
Uses to make purchases at millions of outlets worldwide.
Used for cash withdrawal at ATMs worldwide.
Getting a debit card is very easy
Personal information will never seen by others as in the case of checks
No need to carry checkbook or cash in hands.
It is widely accepted by merchants than checks.
It is a quick, "pay now" product.

Debit card is an alternative to cash and check, customers need not pay any interest as in the case of debit cards and that increases the popularity of debit cards. In order to qualify for a debit card, one must have a checking account.