Credit Card Application And Processing

When it comes to purchasing, Credit Card is the latest trend among the people. Direct cash has very limited use and is used only in those places where the facility of card swiping is not available i.e. in establishments where credit card is not accepted. Credit cards have today even become a display of status too. One can find people with many credit cards of different banks and are carrying them with great pride. This also gives them the needed confidence for making purchases without the least hesitation as they very well know the limit mentioned and how much they have spent. Let us see how credit card works. A person gives a Credit Card Application to the banker along with certain requisite documents. The bank checks the credential of the applicant that would include his monthly and annual income and how much he can set aside for making payments towards the credit purchases. And accordingly, if found satisfied, issues a credit card and sets a credit limit. This credit limit can later on be enhanced depending upon one's regularity in payment and increased income statement. In the meantime, the details given in the Credit Card Application is verified (like the residential address and employment, phone number etc). For this a Field Investigation (FI) is done. An FI executive person physically visits that house and office, ensures that the person is staying there and is bonafide. He also cross checks the other information provided like the applicant's job period, salary structure, his market reputation when it comes to repayment etc. Only after getting a positive report on this aspect is the Credit Card Application processed further and the client is issued with a credit card. These Credit Card Application are available in all banks and most of them have even put up online forms. So all that you need to do is to fill up the details and attach the mentioned documents and submit it at the nearby branch or online itself. Depending upon the service it takes anywhere between a fortnight to 3 weeks time to issue a credit card. This comes in a plastic rectangular shape with details of the bank, your credit card number etc embossed in it. The card holder can now start using the card. It is a kind of mutual agreement between the banker, the card holder and the merchant. While the card holder agrees to make a payment to the banker for the goods purchased, the banker agrees to pay the amount on behalf of the card holder, to the merchant. And the merchant in turn agrees that he would provide the goods to the card holder and accepts the payment from the banker. This credit card has made e-commerce possible and highly popular. Now using this you can make purchases from anywhere in the world, just by sitting at your home and using your credit card. These are referred to as CNP or Card Not Present Transactions. Just imagine how much powerful and valuable a Credit Card is !!!