The credit card facilitates the purchases of goods and services through a plastic device that has the identification of its holder.
It is any instrument that allows its owner or user, having a credit from the issuer, to acquire goods or pay for services sold or provided, in establishments affiliated with the corresponding system, in addition to other types of benefits that may be granted.
It is called a “card” because its first form of use was (and continues to be) a plastic device the size of a business card that has a magnetic strip in which information is stored with the identification of your owner and other related data. It also contains the logo and name of the bank or entity that issued the card, an identification number, the name of the cardholder and its expiration date (expressed with month and year).
However, current regulations also indicate that “the card may correspond to a plastic instrument or any physical, electronic or computer device , which has a unique identification system of the respective means of payment and whose support contains the information and security conditions chords with such character “. In fact, in some countries the mobile phone is already used as the device that contains such information and therefore the phone replaces the card for these purposes.
Credit cards are non-transferable.
Several credit card systems issued by banks or commercial houses operate in the national market, including international brands (Visa, Mastercard, Diners, American Express, among others) and national (CMR, Presto, among others).
Credit cards allow you to make purchases in businesses that are affiliated with the card’s payment network (in physical or virtual form, over the phone or Internet) and it is also possible to carry out different operations through ATMs.
To carry out the activity of issuing and operating the cards, the respective financial institution (which can be a bank or a non-bank entity) must be registered with the Commission for the Financial Market (CMF), which regulates and supervises its activities. Additionally, each card that is delivered to a customer must be backed by the corresponding contract, which regulates the rights and obligations of the parties (customer, issuer and operator).