The Credit Card System Essay

663 words - 3 pages

First what is a credit card, what does it do and how is it used "A credit card is part of a system of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holders promise to pay for these goods and services. The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user." credit card is used by Data from the card being obtained from a magnetic strip or chip on the card. Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, any outstanding fees, and the total amount owed.This kind of system is used in just about every shop around the world and even from your own home over the internet. The credit card relies on a few information systems like the database, the server and the electronic verification system (EVS).The system participants and users role in this system is to agree to pay the card issuer. The cardholder indicates his/her consent to pay, by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a Personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a 'Card/Cardholder Not Present' (CNP) transaction. verification systems allow merchants to verify that the card is valid and the credit card customer has sufficient credit to cover the purchase in a few seconds, allowing the verification to happen at time of purchase. The verification is performed using a credit card payment terminal or Point of Sale (POS) system with a communications link to the merchant's acquiring bank.The information technology of the system includes data management, networking, engineering computer hardware,...

Find Another Essay On The Credit Card System

Australian Credit Card and Securitization Essay

4903 words - 20 pages financial system in the past decade was the growth in the securitisation market. The securitization of credit card debt has in recent years constituted a big and maturing segment of the overall securitization market, reflecting the dramatic increase in the use and acceptability of credit cards globally and due to securitisation being able to increase the banks liquidity and reduce its regulatory capital through a clean sale of assets. However the

Credit Card Debt Among College Students

2385 words - 10 pages . Nevertheless, each party must maintain a willingness to be pliable in order to solve the debt crisis, which would result in screening current policies and regulations. Additionally, an Act like H.R. 1208 could create initiatives for the education system to begin incorporating financial fitness. Consequently, credit card companies have received the most criticism as being self-promoting at any cost. This may be in part because “decision makers do not

E-Commerce Fraud

2118 words - 8 pages transaction over processing paper checks” (Hiller 244). Consumers are also taking advantage of online banking and bill payments as this has seen increases in use . The credit card processing system is “based on trust and is designed to protect everyone involved:” merchant, issuing bank, and cardholder. AA Access Credit Card Company outlines the five basic components in an efficient credit card processing system . First, the credit card issuing bank

The Pros and Cons of Using Credit Cards and Debit Cards

3688 words - 15 pages cards that are commonly used for cashless transactions. First is the credit card which is a plastic token, with a magnetic stripe that contains the machine readable code. Credit cards are known as the most common substitute for cash payment. It is also commonly used for internet transactions. Credit card holders have their credit limit, whic has been approved by the card-issuer such as banks, stores and etc. Cardholders usually pay their balances

Yes or no to a credit card?

957 words - 4 pages use, the reasons are particularly understood; for college students, credit cards are their only means for paying for their education”. The Card Act helps guide students in campus and informing them about the agreements of the card and preparing them to get financial experience. Some individuals agree that college students are applying for a credit card at a young age and getting in debt early. Even though college is a place where teenagers come to

Credit Cards For The Young A Boon Or A Bane:

961 words - 4 pages Credit Cards for the Young A Babe or A Boon?: A Study of Student Indebtedness to the Credit Card Companies A.Introduction 1.Definition of a Credit Card 2.Marketing Blitz on Students 3.Students' Ignorance and Irresponsibility 4.Legislative Issues B.Marketing Toward Youth and Students 1.I started Receiving calls shortly before my 18th Birthday 2.Tables in student unions and cafeterias with free stuff.3.Flyers in every hallway of every building 4

How Hackers Steal Credit Card Imformation From Companies During Black Friday

1156 words - 5 pages . The system that the hackers attached was the point of sale (PoS) system that reads credit card information from customers when checking out. The method used to steal 70 million Target customers credit card information was RAM scraping malware, which allows an attacker to steal information from memory of a PoS device. (Kerner, 2014) Since most PoS devices site in an internal network it was unclear how the hackers installed the RAM scraping


1059 words - 5 pages For this assignment I attended a credit card workshop. I decided to attend the “know your credit score” workshop for class because I wanted to get a better understanding of how credit works. Currently, I do not own a credit card and I am not too familiar with how the process of getting one and maintaining a good credit score works. Since I will be graduating this coming June and credit card companies will be contracting me soon after, I felt as

Myer's loyalty program: business process and business practice

1765 words - 7 pages repayments on time. But in the actual application process, applicants are not informed what level of income they need to satisfy in order to be granted the credit card. Furthermore, the application form itself does not explicitly state such information either. Maybe GE Capital Finance, the credit accounts provider of the Myer Card has their own system to assess the financial positions and credit history of the applicants. But from the applicants

Use and abuse of credit.

1413 words - 6 pages $10,00023.264.090046.419.933.8$10,000 to $24,99950.856.91,20052.319.328.4$25,000 to $49,99973.258.21,70048.320.531.2$50,000 to $99,99989.655.92,40053.920.225.9$100,000 and more97.936.43,10072.013.814.11. Families include one-person units. 2. Among families having a balance.Source: Board of Governors of the Federal Reserve System, unpublished data. From Statistical Abstract of the U.S., 2001.Works Cited"Credit Card Use, 1989-1998." 5 May 2003 .Cambridge Consumer Credit Index. " Cards with Rewards." 5 May 2003 .Mae, Nellie. " Credit Card Debit for students." 5 May 2003 .

Identity Theft

1768 words - 7 pages giant corporations and established, successful retailers. This is a dangerous assumption. Identity theft can occur anywhere and at any time. In April, 2011, an external breach of the Sony Corporation's intricate Playstation Network security system led to a weeklong outage for users. This breach exposed the identity information and credit card data of 77 million consumers. An equally devastating breach of consumer financial data occurred two

Similar Essays

Discussing The Credit Card Debt Crisis

3403 words - 14 pages In Arianna Huffington’s “The Credit Card Debt Crisis: the Next Economic Domino” she elaborates us on the steady rise of credit card holders and the very apparent rise of credit card debit in the U.S. She also talks about the number of credit card defaults and how they were on a rise in 2009 peeking off at 10% the highest for that year. Huffington directs most of her attention towards JPMorgan Chase, the nation's top credit card lender who

Investigating The Implementation Of Magnetic Access Control Card Security System Within The Swaziland College Of Technology Community

1428 words - 6 pages 1. Introduction Access control is the restriction of access to a building or area and it can be achieved by different means of physical security. Magnetic access control card system is one of the many ways of restricting access to a building or area. According to Oke et al. (2009), magnetic access control systems are used to control entry to a room or building and were developed to reduce prodigious amount of theft and fraud. Magnetic access

What Is Credit Card Fraud? Essay

1187 words - 5 pages prison, which means they are not eligible for parole until three and a half years have been completed. The court system is getting stricter on cases of credit card fraud and identity theft, especially considering it is becoming the most popular type of theft in society today. This type of fraud involves the theft and/or counterfeit of a credit card or a similar credit payment device; this includes use of a credit card to illegally obtain funds

Credit Fraud Overviwe Analysis And Recommendations

1596 words - 6 pages cardholders and created the opportunity for the emergence of American Express. The Diners Club Card and American Expressed remained a charge card and operated on a closed loop system, meaning the card issuer handled all aspects of the transaction. The modern credit card most commonly associated with today’s revolving balances was created in 1966 with MasterCard and Visa (Woolsey & Gerson, 2014). Unlike Diners Club and American Express