Credit Card Bills
A credit card, also called a charge card, is a plastic payment card issued by a bank or other credit card organization to individual consumers to enable the individual cardholder to payment to a retailer for products and services according to the promise made to the credit card issuer. A credit card can have a limit set on it will be spent until the amount has been so paid back. This amount cannot exceed the credit card holder’s credit limit, which will normally be set by the credit card provider. Credit cards can also have interest rates. The interest rates may vary from card to card, and they are usually quoted as annual fees.
Because credit cards carry with them a risk of theft, fraud and abuse, it is important that the issuer will take certain actions in order to protect their card users. To help with this, these credit card bills contain certain anti-fraud and anti-theft provisions within them. One such provision is the ban of certain transactions that would involve the use of a stolen or fake card. There are also other anti-theft provisions included in the various credit cards bills.
Another security measure included in the credit card’s bill is the Preventing Money Identity Theft Act. This acts against those who falsely represent themselves as being merchants or suppliers and the use of address listings in places other than the applicant’s residence. In addition to this act, it is necessary for every credit card holder to lock up their credit cards whenever they leave the premises. Locking means that a financial institution or other entity cannot remove money from the account without the authorization of the holder. This can be done by printing a special locking code that cannot be copied by another party. This locking code needs to be put in writing on the debit card or on a document that is added to the credit card.
Most banks offer the option of using debit cards as a supplementary way of making payments. Some people have difficulty with the idea of having money deducted from their accounts without the written consent of the holder. This can lead to situations where the thief uses the stolen credit card as part of his overall plan. In fact, some credit card companies may even deny the request outright if the applicant requests for this.
A third security measure included in the credit card’s bill is the reissue of credit cards after fraudulent transactions. In this regard, the Federal Trade Commission passes measures whereby the credit card company will be asked to issue a new credit cards with increased money-back guarantees. Also, these credit cards will only be able to issue money if the applicant declares that he will not repeat any fraudulent transactions in the future. This will help safeguard the consumer from falling prey to scammers.
Credit card issuers and banks will also be asked to offer higher interest rates and loan caps to cardholders. However, this is only applicable to borrowers who borrow funds monthly and do not use their card extensively. For those cardholders who regularly use their cards, they can benefit by having a reduced interest rate on their card issued by the bank.