credit cards

Question 1

describe process of paying with credit card

Answer 1

cardholder pays merchant,
merchant sends details to acquirer
then sent to issuer who sends statement to cardholder to pay

Question 2

how is credit card safe

Answer 2

chip and pin

CCV

Question 3

what legislation protects consumers with credit cards

Answer 3

Consumers rights act 2015

protects goods paid in full on card between 100 - 30,000 if faulty or scammed

Question 4

how to avoid interest

Answer 4

pay in full on time

Question 5

Name 10 types of cards and use

Answer 5

low apr - low income/good history, annual fee
0% balance transfer - no apr for set period
cashback - % of transaction given back if paid in full at end of year
Reward - offer points such as air miles
charity - money given to charity for using
cash builders - low limit high rates,
Travel cards - no charges abroad
gold cards - high limits, high apr, benefits
store - only used in store, high apr
charge - must be repaid, cannot borrow money past interest free period