Cards are very convenient means of payment in our everyday life when we go shopping, at the supermarket, at the library and at any outlet that allows cards to be used. Two types of cards are frequently used-debit cards and credit cards. The number of debit cards in circulation is much higher than that of credit cards. However, the impact of Covid-19 and the recourse to online shopping has given a boost to credit card usage by the public.
What is a Credit card?
A credit card is a card that allows you to borrow money against a line of credit, otherwise known as the card’s credit limit. You use the card to make basic transactions, which are then reflected on your bill.
- You will be assigned with a Personal Identification Number (PIN) with your credit card which you are required to remember each time you perform a transaction that require a PIN Code.
- Never reveal your PIN number to anyone.
- You will be charged a fee by your bank for holding and using a credit card.
- You may have different options for repaying your credit card borrowings, for instance a monthly repayment of 50% or 100% (full repayment).
- There may be late payment charges associated with a credit card and interest rates charged in case of non-repayment.
Important tips for online purchases using a credit card:
- Ensure that your computer has an updated antivirus and that your web browser has the highest level of security.
- You may consider using a credit card solely for online purchases. It may thus be easier to detect suspicious transactions on your account.
- Never click on “Always Remember” in relation to your password or card number, even if the web browser prompts you to do so.
- You should be aware of the online security measures taken by your bank to prevent fraud. For example: alerts through text message from the bank or call-back to clients by the bank to confirm transactions done.