Various Functions of a Credit Card

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Today, credit cards fulfill many functions and are very versatile. They can be summarized in the following functions:

Credit

The holder can obtain an extended credit up to the agreed limit at a published interest rate.

Charge

The holder may refund the full amount at the end of the month, free of charge, provided that no cash advance has been taken.

Cash

Upon presentation in the appropriate banks, subject to verification, money can be obtained. In most cases, ATMs can also be used to obtain money.

Check the warranty

A check drawn on a bank can be guaranteed up to a published limit, provided that it is accompanied by a check guarantee card (or, in some cases, a credit card). Visa or Mastercard) issued by the bank from which it is drawn.

Check cashing

Guaranteed checks as above can be used to obtain cash from the branches of most banks, although fees may be charged under certain circumstances.

International

If the card is a member of Visa International or Mastercard International, you can use it in many countries where many banks are members.

The most important fact that emerges from the summary of card functions may be that they are not strictly speaking debit cards. Although they can be used to obtain cash through an ATM, debit will be made to the credit card account and not to the cardholder's bank account.

The credit cards mentioned above are bank cards. Different bank cards have different functions. The functions of bank cards really depend on each bank. Some bank cards may have all the above functions and others not.

There are other credit cards issued by retail stores, such as Petrol, Quasi Card and Private Label cards, which may have some of the above functions.


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