Cards & Payments Concepts Quiz

Card Concepts

Payments made with a debit card are deducted immediately, in full, from a bank account, while payments made with a credit card are paid in instalments, and the outstanding balance attracts an interest charge

Visa and Mastercard cards contain 16 digits. American Express has 15 and Diner’s Club has 14. The numbers on a credit card actually follow a universal standard which is used to identify specific functions. Credit cards that are part of the Visa, Mastercard and Discover payment networks have 16 digits, while those that are part of the American Express payment network have just 15. There are also other numbers on the front or back of your credit card that can be used to authenticate transactions, but do not form part of the main card number

Card Concepts

Card Concepts

Card Concepts

Card Concepts

Card Concepts

Card Concepts

Card Concepts

Card Concepts

Its always best to pay your credit card bill or instalment on time

It’s possible to improve your credit scores by following a few simple steps, including: opening accounts that report to the credit bureaus, maintaining low balances and paying your bills on time

It can be easy to run up credit card debt at sometimes significantly higher interest rates than ordinary borrowing from a bank

The Simple Interest method can most often be calculated by using the following formula: SI = P × R × T, where P = Principal, R = Rate of Interest, and T = Time period

Card Concepts

An affinity card is a credit card offered in conjunction with two organisations, one a card issuer and the other a non-financial group with which consumers have an affinity. Universities, sports franchises and nonprofit organisations are examples of affinity groups that often offer special discounts or deals for using their credit cards issued in partnership with a major bank.

Zombie debt is old credit card and other debts that are beyond the statute of limitations, so a debt collector cannot successfully use the courts to collect them. Although these debts no longer have the courts as an avenue of collection, there’s nothing to prevent debt collectors from asking consumers to pay them. In recent years, the debt collection industry has expanded, creating more agencies and lengthier efforts to collect. So from the consumer’s perspective, debts don’t die, they rise to live on and on. Like zombies.

Card Concepts

True, you will not incur interest charges if balances are settled in full before the due date

ADVERSE ACTION

If you take adverse action against a consumer based on information in a consumer report, you must tell the consumer. The most common type of adverse action is a denial of credit. Adverse action is defined in the Equal Credit Opportunity Act and the FCRA to include:

• a denial or revocation of credit
• a refusal to grant credit in the amount or terms requested
•  a negative change in account terms in connection with an unfavourable review of a consumer’s account

Denying a consumer’s request for additional credit under an existing account generally isn’t considered an adverse action but changing the terms of the existing account can be.

Card Concepts

With variable-rate cards, your APR (annual percentage rate) can change. Most credit cards have variable rates, and most of them are pegged to a prime interest rate. The prime rate, in turn, moves in lock step with a Reserve Bank rate.

Card Concepts

Revolving credit is an agreement that permits an account holder to borrow money repeatedly up to a set dollar limit while repaying a portion of the current balance due in regular payments. Each payment, minus the interest and fees charged, replenishes the amount available to the account holder. https://www.investopedia.com/terms/r/revolvingcredit.asp

Card Concepts

Card Concepts

Card Concepts

Card Concepts