Tomcat
Professional
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- 2,688
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The transformation of bank cards into a mass settlement instrument, their increasing popularity among broad groups of the population is clear evidence that they have a number of advantages over other forms of settlement in the retail sector. One of the main attractive features of card payments is that the holder of a bank card does not need to have large sums of money with him when visiting shops and service enterprises. Compared to checks, bank cards allow you to avoid the formalities associated with a check form of payment. The convenience of payments with bank cards is fully realized only if there is a wide network of trade and service enterprises that accept them as payment for goods and services. In this regard, the most convenient are the cards of international card systems,
Another advantage of bank cards for the payer is the possibility of obtaining a loan from the bank. A credit is provided automatically by a credit card, without a special appeal to the bank, and the credit limit is restored as the debt is repaid.
It is also important that the cardholder receives information about the payments made from the bank - he can check each operation and make claims in case of incorrect execution of transactions.
There are other advantages of payments using bank cards. Thus, the holder of a bank card may be provided with benefits when purchasing goods, additional options for exchanging purchased items, restoring lost or stolen cards, benefits when booking rooms in hotels, when ordering air tickets, etc.
For trade and service enterprises, the speed of goods turnover and the timeliness of payment are important. Bank cards allow you to attract new customers, increase the average size of purchases through the use of a bank loan by the payer.
For countries where checks are traditionally used, the transition to card payments removes a number of problems inherent in the check form of payment: the difficulty of identifying the bearer of the check, the risk of no money in the payer's account, forgery of checks, etc.
In turn, commercial banks are active initiators of the introduction of card payments in retail turnover for several reasons. First, banks are using a form of card financing to rapidly expand their consumer loan portfolio. Banks can receive additional interest in case of prolongation of the loan beyond the grace period. This percentage is on average higher than the percentage for any other type of loan.
The client base of commercial banks is expanding, thus overcoming spatial restrictions on attracting and servicing clients. The card allows the client to make transactions far from bank branches - pay for goods, receive money from ATMs. The client is no longer tied to the bank. This, first of all, allows banks to save on capital investments required to create a widespread branch network. In addition, banks can offer customers additional products and services, i.e. engage in "cross" selling.
Another advantage of bank cards for the payer is the possibility of obtaining a loan from the bank. A credit is provided automatically by a credit card, without a special appeal to the bank, and the credit limit is restored as the debt is repaid.
It is also important that the cardholder receives information about the payments made from the bank - he can check each operation and make claims in case of incorrect execution of transactions.
There are other advantages of payments using bank cards. Thus, the holder of a bank card may be provided with benefits when purchasing goods, additional options for exchanging purchased items, restoring lost or stolen cards, benefits when booking rooms in hotels, when ordering air tickets, etc.
For trade and service enterprises, the speed of goods turnover and the timeliness of payment are important. Bank cards allow you to attract new customers, increase the average size of purchases through the use of a bank loan by the payer.
For countries where checks are traditionally used, the transition to card payments removes a number of problems inherent in the check form of payment: the difficulty of identifying the bearer of the check, the risk of no money in the payer's account, forgery of checks, etc.
In turn, commercial banks are active initiators of the introduction of card payments in retail turnover for several reasons. First, banks are using a form of card financing to rapidly expand their consumer loan portfolio. Banks can receive additional interest in case of prolongation of the loan beyond the grace period. This percentage is on average higher than the percentage for any other type of loan.
The client base of commercial banks is expanding, thus overcoming spatial restrictions on attracting and servicing clients. The card allows the client to make transactions far from bank branches - pay for goods, receive money from ATMs. The client is no longer tied to the bank. This, first of all, allows banks to save on capital investments required to create a widespread branch network. In addition, banks can offer customers additional products and services, i.e. engage in "cross" selling.
