Debit Cards - Why Use Them

A debit card is a plastic payment card that can be used instead of cash when making purchases. 

It is a card used for fund transactions. and one can get electronic access to your savings account in any bank using the ATM.

You can deposit and withdraw as per your convenience this way without having to worry about standing in long queues.

There are different types of debit cards available all enabling you to spend only what you can afford unlike credit cards.

Banks issue four types of debit cards:
Visa
VISA Electron
 MasterCard
Maestro

A Debit Card will contain the following information:
 1. Full Name.
2. Card Expiration Date
3. CVV code
Note: For Visa, this password is called Verified by Visa.
          For MasterCard, this password is called 3D SecureCode.

 Debit cards are issued by banks, mainly for convenience and to give bank customers flexibility in their banking transactions.

It can be used to withdraw money, make deposits, transfer money between accounts, find out your balance, get a cash advance, and even make loan payments as per your convenience.

When you pay with a debit card, you will find that the money is automatically deducted from your savings account.

Banks issue debit cards that can be used wherever credit cards are accepted.

Debit cards are preferred for two reasons:

one does not have to carry your checkbook and present identification, and

you pay your bills immediately, unlike when you use a credit card and pay later

There are few things to keep in mind when using debit cards.

A debit card uses funds directly from your savings account unlike a credit card where you can borrow funds on credit, leaving disposable cash in your account.

Using your debit card for ATM transactions can be expensive if the ATM is not affiliate with the concerned service provider.

It is difficult to maintain the balance on your account may be difficult unless you record every debit card transaction.

One needs to guard your debit card against loss or theft as most financial institutions will try and protect their customer from debit card fraud but you could be potentially be liable to pay for fraudulent debit card transactions

Credit Cards - How It Works

Credit cards have become a way of life and they give you an option that can be used to make purchases, complete balance transfers and cash advances that you can use to pay back the loan amount in the future. 

 When using a credit card, you must make at least the minimum payment every month by the due date on the balance as it lets you have a credit facility where the credit card provider allows you to borrow money from them. 

This enables you to spend up to an agreed credit limit and at the end of each month you are charged interest on your balance.

 You can spend money on credit and it can be done to a preset credit limit, which would differ from person to person.

While borrowing money through a credit card you enter into a contract; where you need to pay back the balance owed with interest charges.

 All credit cards charge interest rates and the balance on the credit card accrue interest each month. and it depends upon the purpose for which the cards is used and it must be noted that the interest rate is then added to the outstanding balance on the card.

The interest rate is determined by the type of Credit Card you hold and it is best to pay off the bill every month.

If you do not pay off any outstanding balance in full then interest will be charged and it gets backdated too with the result being that if you bought something at the start of the month you’ll be charged a whole month’s interest.

Credit cards have spending limits that are determined based on your credit rating which is also used this to determine your eligibility for a credit card. 

If you use your credit card judiciously, your credit score improves, thus making it easier to get a higher credit limit.

It is not advisable to use credit cards at automated teller machines [ATMs] to withdraw money as you will be charged for the transactions.

All credit cards charge interest on the outstanding balances made for purchases, balance transfers and cash advances.

One advantage of credit cards is the membership rewards that offer you rewards for shopping which can be exchanged for booking hotels, flight points and a variety of other rewards. 

Finally, the way you make use of the card, largely determines which card you select and one must also consider which card benefits meet your requirements.

Finance - Salient Features

Finance is the lifeblood of all economic activity and it is a fact that financial system is a major element of any economy.

It performs the essential function of channeling funds from people who have saved funds by spending less than their income to those people who have a shortage of funds since their plans to spend exceed their income.

A business must ensure that the funds are available from the right sources at the right cost at the right time and also the ways of raising funds, whether it is to be through the process of  securities or lending from the bank.

The funds that are acquired have to be allocated accordingly to various projects and services and the objective of the business is to earn profits which are determined by how effectively and efficiently allocated funds are utilized.

 When it comes to capital utilization, it has to be done with proper investment decisions, proper control and asset management policies and efficient management of funds and working capital.

The aim of any business is to maximize profits and create wealth for the investors, which is measured by the price of the shares of the organization.

The price of the share of any company is known by its present and expected future earnings and enables the defining of policies and ways to maximize the earnings.

Profit making and financial success for the owners is the financial objective of the firm and the role of finance is to ensure adequate and regular supply of funds to the business and provide a fair rate of return to the suppliers of capital.

Finance makes possible the efficient utilization of capital and available resources according to the principles of profitability and productivity.

 It provides a system for internal investment, financing and internal controls and attempts to minimize cost of capital by making a sound and economical mix of corporate securities.

Finance also gives a wider perspective of managing the business generated assets and other valuables more efficiently.

Finance - An Overview

Finance can be described as the study of investments and allocation of resources and is better known as the management of money.

Finance has been present since the beginning of time and it is a word that has played a major role in shaping the history of the world.

It is a subject that includes the basics of assets and liabilities over time under conditions of different degrees of uncertainty and risk.

 Finance can also be defined as the science of money management.

 It aims to price assets that are based on their risk level and their expected rate of return.

 The field of finance includes public, corporate and personal finance.

Finance is about investments and can best be described as nothing but a means to make possible the exchange of available resources.

Finance is not only about the exchange of money and the use of the barter trading system is also a type of finance.

It is a method of managing and utilizing various available resources like money, assets, investments, resources, securities, etc.

Finance is the life blood of our economic activities and to complete any economic activity, we need certain resources in terms of money in the form of currency notes and other resources.

We need physical resources, that allow us to get productive activities done and carrying out business operations such as sales, pay compensations, reserve for contingencies and unforeseen events.

Finance has now become an indispensable function and defines every aspect of how we go about our daily lives.