What is Visa Card? Visa Card is a credit card issued by Visa Communications, Incorporated, which is owned by Citibank. Visa Card was established to facilitate electronic funds transfers through the Visa Network, commonly referred to as the Visa System. It facilitates electronic funds transfer across the globe, most commonly via Visa-branded Visa debit and credit cards.
Like other credit cards, Visa Card allows the holder to purchase merchandise using any Visa institution. There are no extra fees or charges for using this plastic card. This means that you do not have to pay an annual fee, and can enjoy unlimited purchases wherever you go. The biggest advantage of this card is that it helps to strengthen the American economy.
How does Visa Card work? A business man goes to a store and wants to purchase some goods. Before he can leave, he must make the payment using a credit card. If the transaction goes successfully, he will be charged with a transaction fee and the difference between the amount of cash he has paid and the amount of credit card he possesses will be his credit line. If the transaction goes unsuccessful, the store will charge a loss for the amount of goods sold.
In the United States Visa Card is a recognized currency. Hence, purchases made using a Visa card will have the same “cash value” as that of purchases made with cash. Hence, when a customer pays for his goods using a credit card, the amount is credited in the customer’s account, and the company will issue him a new Visa card. Thus, the customer continues to use this card till the balance on his card is exhausted. This way Visa Card helps to build credit line for both the company and its card holder.
A debit card works on a different principle. A debit card holder may only use the ATM card provided in his account. He may make cash purchases or cash withdrawals using this account also. A card holder who fails to meet his monthly expenditure requirements by a specific deadline will incur a default charge under the debt collection section of his credit card issuer’s terms and conditions. The customer can avoid these charges by promptly paying his bills that are overdue.
A credit card is a virtual card with a few restrictions. One of the major restrictions is that the card holder cannot hold more than one credit card account. Thus, if he uses the card to make purchases, the maximum amount he can take out from his account is equivalent to the maximum amount he can deposit in his account. Also, he cannot use this card to pay bills unless the bill is paid on the due date. Again, if a customer fails to meet his repayment deadlines for the bills, he faces a late payment charge under the debt collection section of his credit card issuer’s terms and conditions.
In addition, a credit card user may use this card anywhere credit card is allowed. So, an Internet merchant may use it to make purchases over the Internet. Also, the user may use it as he would a debit card and use it at any place that accepts debit cards, such as the ATM. Again, he cannot exceed the maximum amount he can get out of his account. However, in some countries like Spain, a credit card is not treated as a secured card, so a customer may be able to get some perks or benefits by giving an assurance to the credit card company that he would repay the debt within a stipulated period of time such as 30 days.
So, what is Visa Card? It is a symbol of credit card convenience that allows us to carry around our favorite plastic. The convenience part is not its use but the fact that it can be used anywhere credit cards are accepted. Many merchants even accept this card, and some do it only for selected goods or services. This gives us the ability to shop without leaving the comfort of our home or office.