What is a credit card?
A credit card is a kind of a bank card issued by a card-issuing bank to an individual in order to help the individual purchase different products and services easier and faster. A credit card number is a number assigned to a credit card. A cardholder is an individual who has any kind of bank card. A cardholder can easily purchase and avail different products and services from merchants.
How does a credit card work?
In order to understand the mechanism of a credit card, one has to know who are the key players in the credit card mechanism. They are enumerated below.
- Cardholder. The cardholder is the individual possessing any kind of bank card issued by a card-issuing bank. A bank card can either be a credit card or a debit card.
- Merchant. A merchant can be an individual or a company selling any kind of products or services.
- Acquiring bank. This is the bank of the merchant. This bank is where the merchant deposits the money from his or her business. The acquiring bank is where the merchant can receive payments from his or her customers by making a deposit on the merchant’s account.
- Issuing bank. The issuing bank is the bank of the cardholder. This is the bank that issued a bank card to the cardholder. The issuing bank can transfer money to the acquiring bank when a payment is needed.
The credit card mechanism is a complex system of money transaction which makes purchasing easier and faster for the cardholders.
What is a credit card number?
A credit card number is a number assigned to a credit card. The credit card number is unique for all credit cards. However, people can now generate free credit card numbers from different websites to validate different online systems and accounts. These websites can provide an individual with a certain credit card number, a fake name, and fake personal details.