Credit card gives you freedom to shop even if you dont have a single penny in your pocket at the moment. This is because u do not have to pay any amount right away nor the money has to be in the bank account at the moment like debit cards. (In the case of debit cards the money immediately gets deducted from the bank account).
So how does the seller gets money? Is he giving the stuff for free and waiting for the payment till you drop the payment check.
The answer is NO. The seller gets the money immediately; not from your pocket but the card issuing company pays it for u. Its like, the issuer lends money to the consumer (or the user) to be paid to the merchant.
Monday, February 4, 2008
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