Summary: When you swipe your credit card be sure that you are aware of all the intricacies.
With the advent of civilization and redefinition of technology the world has been on an innovational spree. With innovation encapsulating all walks of life and you should be thankful to technology as it has helped you to shop even with the confines of home. It was not the same back then in the early ages of civilization but now thanks to Flipkart, Amazon, eBay, Shopclues but while processing the payment you might be using different modes of payment but if you have been accustomed to the use of the credit cards, in that case, in this blog you will come to know about few basic aspects that can help you to transaction safely without any problem.
Few Facts about Credit Card Processing Payments
In the credit card payment processing you might have had your share of knowledge but not all of them are correct. You might have interpreted that three parties are involved in the payment procedure. But in actuality it is 4 parties involved in the transaction with the first one being the merchant receiving the payment followed by the bank that the merchant uses along with the bank that has issued the card to the customer and the customer himself.
In the card processing payment system the customer pays through the card with the amount that the bank raises to the customer. In such way the customer will have to pay for the charges that both the banks (receiving and lending) bank will bear. With such an approach the money paid by the customer is often higher than the amount that is paid to the merchant. So, next time when you swipe your credit card, be certain that for any value of merchandise or fascinating electronics you buy, it will make your poorer by a huge sum folks.
In the credit card payment two rates are charged known as discount rate and interchange rate. In both the fee payment, you can easily make out the amount which will be charged back to the customer. But nevertheless with all these amounts to back the transaction you will also have to pay a certain percentage of the transaction as processing charges which will be added back in the credit card statement. You will have to pay accordingly.
The rate of interest and financial charges may vary from card to card and often for platinum card holder the financial charges are on a higher trajectory as compared to Visa and Maestro card. So next time when you swipe your platinum card be informed that you are paying higher than the visa and maestro folks.