How Do Credit Cards Work?
The bank pays now, and you repay later.
Video coming soon. The lesson video will appear here once it is published on YouTube.
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1.What is a credit card, in the video's words?
The bank pays now, and you repay later.
2.Which party issues the card to the cardholder?
Memory hook: the issuer issues the card to you; the acquirer acquires the shop's card payments.
3.What is authorization?
The bank has promised to pay, but the money has not settled yet.
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Sources (6)
- What is a grace period for a credit card? (CFPB, Ask CFPB)
- How does my credit card company calculate the amount of interest I owe? (CFPB, Ask CFPB)
- Regulation (EU) 2015/751 on interchange fees for card-based payment transactions, Art. 2 (Definitionen), Art. 3
- 12 CFR 1026.12 Special credit card provisions (Regulation Z), (b) Limitation on liability (CFPB eRegulations)
- Eigene Rechnungen: Marge zahlt voll, Leo traegt einen Saldo (synthetische Zahlen, vereinfachte Zinsrechnung)
- Branchenerklaerungen
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Education only. Not financial advice.