Alibio

Today, people are penniless! Nobody’s carrying cash anymore. Everybody’s transacting business with that little glossy thing out there. Its a credit card! Indeed, the credit card has changed the outlook of modern economy.

One can shop anywhere, anytime without fear of being robbed of cash or worried of being stashed by pickpockets. Credit cards is now used to buy plane tickets, pay hotel bills, pay tuition fees and buy anything on line through the Internet. Yes, we are experiencing an economic upheaval – the credit card revolution!

The Market

The highly competitive credit card market is a reminder that everything in our modern day economy are now closely integrated.

Obviously, bankers and financial institutions are engaged in a war of getting the most credit card clients through various perks and incentives. The race to capture a little percentage of the credit card market has boiled down to lucrative promotions.

The Zero balance account

Some bankers are now offering credit cards without requiring a client to deposit or open an account in their banks.

This type of credit card offers is based on the client’s capability to pay in accordance with the projected income. Once a client qualify, a credit card with a limited amount of money deposited by the creditor is immediately granted. The client then could immediately use the credit card. Sounds risky.

However, exhausting the required credit limit and failure to pay the debt is tantamount to being blacklisted. Your credit card provider alerts bankers and other credit card providers of your failure to pay outstanding account. Your blacklist tag is recalled only when you pay all your credit card obligations.

Some banks offer zero interest rate to credit card holders who religiously pay their debts. But, for those who fail to pay their credit on time, the bank penalizes by imposing cumulative interest which double the amount of your debt. Be careful.

Other card providers offer zero interest rate on certain period. This promotion is often employed during holidays so that credit card holders will maximize the use of their credit cards. During promotion period, credit card providers collect only negligible service fees.

Debit Card and Credit Card

Another alternative card is called the debit card. Debit cards could not be used to transact business like the credit card does. Basically, a debit card is like an automated machine (ATM) card. It has a corresponding amount of money deposited on its account but it cannot be used to buy credit.

But while the debit card cannot be used to buy credit, its holder can withdraw cash in any accredited automated machine.

Other cards represent a debit and at the same time credit card. It means the card could be used to buy credits and could also be used to withdraw cash.

State-of-the-art technology

Credit and debit cards demonstrate the reliance of modern day economy in centralized communication. In other words, the acceptance of credit cards as substitute for cash transaction manifests complete reliance to message service. Even big companies widely use their business credit cards in their regular day to day transactions.