Credit Cards Fraud
Nowadays, computer technology is growing bigger and bigger. This tremendous and powerful improvement has its good and bad connotations. Credit cards are one popular invention of the computer era. According to www.1stamericancardservice.com, a credit card is a plastic card bearing an account number assigned to a cardholder with a credit limit that can be used to purchase goods and services and to obtain cash disbursements on credit, for which a cardholder is subsequently billed by an issuer for repayment of the credit extended at once or on an installment basis. It has some advantages and disadvantages. Fraud is the main problem of the credit cards which it is presented and committed in different forms.
The credit cards present a list of good and bad points and this according to www.themint.org and acclaimcreditcards.hypermart.net. On one hand, advantages are well presented and carry lot of points. First, it is a safe alternative to cash. When you have your card in your wallet, you don't have to carry cash that can be lost or stolen. If your credit card is lost or stolen, you can report the missing card to the card company. The company will then stop accepting any charges on your card. What's more, you won't be charged for purchases made by someone else. You can also withdraw cash from many the branches of the issuing company or from various ATM's all over the word. Second, it builds a good credit history. If you use your card responsibly, you can begin to build a good credit rating for yourself. Later in life, when you need a loan, a lender will want proof that you pay your debts. A good credit card history will help you get your loan. A poor credit history will work against you. Another advantage is that the credit card bails you out of emergencies. Got engine trouble miles from home? Need to be towed? The tow truck and the auto repair shop will accept your credit card. Are you too far from home? Use your card to stay in a motel any phone calls home to describe your bad luck will be charged to your card, too. It also gives you time to pay. Depending on when you make your purchase and when your monthly bill comes due, you can get extra time to save up and pay for what you just charged. If you can pay off the bill entirely, you are really making the credit card work for you. Finally, credit cards payments are accepted worldwide. You can purchase practically everything (with in range of your credit limit) from anywhere in the world. You can pay for goods you buy and for the services you utilize. This can be done on the internet for instance. Credit cards give you the advantage of comparison shopping worldwide. It is the most convenient payment option for this scenario. As ecommerce becomes more and more prevalent, this comes closer and closer to a necessity. Some companies have created services which maximize Internet technology in this regard to full effect. On the other hand, credit cards have many disadvantages. After all those great advantages, how can credit cards be so dangerous? It has to do either by the cardholder or by outside effects like security and fraud. The temptation to acquire too many credit card accounts can lead to losing track of payment details and deadlines. This can be disastrous. It can also lead to a false sense of security where customers continually transfer accounts to new services with lower interest. This rotating form of interest, if not properly disciplined and controlled can lead to ballooning payments when late payments occur. When this happens, the interest rate on even the lowest APR credit card can suddenly explode. Let's take an example shown in the mint website; whipping out a piece of plastic is so easy. It doesn't even feel like you're spending money. Do that enough times in a month, and surprise! Look at that balance ! Where did it come from? It came from all those not-so-big purchases...
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