Know Your Credit Card


One of the delivery channels of the banking services is Credit Card. Due to the massive thrust by the Prime Minister of India on technology and easy availability of credit, the credit cards are becoming highly popular nowadays. It is a cost effective way of providing value added services to banks’ customers. Credit Cards are issued to credit worthy clients for purchase of goods or services from authorised merchant establishments on the credit guarantee of issuer of credit card. It is popularly called plastic money.

Benefits to Credit Card Users

  1. No need to carry cash or write cheques for making payments at merchant establishments. You can make payment upto the sanctioned limit on credit card.
  2. You get an interest free credit period, depending upon the issuing bank and the card scheme, i.e. the normal card and gold cards, as offered by various banks. The interest free credit period ranges from 15 days to 51 days.
  3. Cash can be withdrawn up to a ceiling, within the overall credit limit from the banks’ branches or ATMs (Automated Teller Machines).

Disadvantages to Credit Card Holders

  1. If you are a spendthrift, it often results in over spending.
  2. Frauds may also occur, due to loss of card in the intervening periods.
  3. Since signatures are already on the cards, forging of signatures could cause a loss to the card holders. Such kind of a forged signature loss can be avoided with the use of photo credit cards (Credit cards with a photograph of the User).

How to Use Your Credit Card

To use your credit card at merchant outlet(shops), you may follow the following steps:

  1. The merchant will swipe/dip your card at a PIN enabled POS terminal
  2. The merchant will then enter the amount to be paid by you as per your invoice
  3. The POS terminal will ask for the PIN to be entered
  4. You need to enter your 4 digit Credit Card PIN on the POS machine. Take your card out once the transaction is complete


To use your credit card for online transaction, you may follow the following steps:

  1. While making payments through the Internet, make sure you are using a secure site. It will have a lock icon in the status bar of your web browser. This lock icon indicates that a site is using an encryption technology during the transmission of your sensitive data.
  2. Do not respond to phishing e-mails that falsely claim to be from a bank and ask you to disclose your personal and bank related confidential details. No Bank will ever ask you to send your personal banking details on email or phone.
  3. Get yourself enrolled for 3D Secure (Verified by Visa (VbV)/ MasterCard SecureCode (MCSC)). This is now mandatory for carrying out online transactions.
  4. Avoid accessing your Internet banking account on unsecured public computers (e.g. internet cafes).
  5. Once you have completed your online banking transactions, remember to log-off by clicking on the “log-off” option. Close your browser and lock your computer if it is left idle.

How can you increase the credit limit on your credit card?

Usually you receive an SMS to avail an offer to increase the credit limit on your credit card. You may reply to the SMS and the bank will get in touch with you. Alternatively, if you want to know the eligibility you may call the Customer Care Centre of the bank by authenticating with your credit card and PIN. If you are found to be eligible for a higher credit limit, the bank will take your request. Once done, you would get an SMS alert and email notification from the bank.

How can you pay your Credit Card Bill?

You can drop your payment cheques in the ‘drop box’ facility at Bank branches and ATM centers. Cash payments are accepted only at only the credit card issuing Bank branches during banking hours.

Same Bank account holders can avail of the convenience of the auto-debit facility. Bank account holders can also avail of the convenience of scheduling payments through Bank’s Internet Banking or pay their credit-card bills.

If you are not a Bank account holder of the card issuing bank, you can still pay from your existing bank account via the Internet through NEFT/IMPS/UPI option.

Are there any interest charges on your credit card?

If you make a payment for the Total Amount Due before the Payment Due Date, no interest is charged. Thus you can enjoy interest-free credit from the date of purchase to the date on which the payment is due. Interest-free period could range from 15 to 51 days.

Interest is charged if you do not pay back the Total Amount Due of the previous month statement by the payment due date. Interest will be charged on the Total Amount Due and on all new transactions till such time as the previous outstanding amounts are paid in full. Also, interest will be levied on all cash advances from the date of the transaction until the date of settlement.

The Minimum Amount Due generally is 5% of the outstanding amount or such other amount as may be determined by Bank at its sole discretion. Instalment amount due on the Card is also added to the Minimum Amount Due. If there is some unpaid Minimum Amount Due of the previous statements, these will be added to the Minimum Amount Due of the current statement.

If the total outstanding is more than the credit/cash limit, then the amount by which the credit/cash limit has been exceeded will also be included in the Minimum Amount Due.

In a nutshell, paying the minimum amount due(MAD) is not advisable.

How can you convert your card transaction(purchase) in to EMI?

All transactions above a threshold amount can be converted to EMI, with some exceptions like jewellery, fuel and cash withdrawals.
You have to convert the desired transaction into EMI usually within 30 days from the transaction date.
  1. You can convert your Transaction into EMI by logging to Internet Banking.
  2. You may call on Customer Care number from your registered mobile number.
  3. You can also write to their customer care email ID from your registered e-mail ID
If you make a transaction that exceeds your available credit limit, the Bank will use its discretion to approve the transaction. If the transaction is approved, an over-limit charge would be levied to the card account.

What happens if you pay more than the total amount due on your credit card?

The amount paid in excess shows up in your monthly statement and is adjusted against future purchases.

How can you Apply for a Credit Card online?

The best way to apply for a credit is online. You may logon to and apply online for instant approval.

How can a customer cancel the credit card?

In case you want to go ahead with the cancellation of a credit card, you have to clear the outstanding amount due as on date and redeem the reward points accumulated against your credit card. Reward points will not be redeemable after the card has been cancelled.

What is a CVV number?

CVV of Credit Card

The Card Verification Value (CVV) for Visa, MasterCard  and Discover Card is the final three digits of the number printed on the signature strip on the back of your card. CVV for American Express appears as a separate 4-digit code printed on the front of your card, above the American Express logo. It is usually required for Online payment transactions.

Where can you find the credit card number?

Credit Card frontIt is a 16-digit (15-digit in case of Credit cards on American Express network) number that is Embossed on the front of the credit card plastic issued to you by the Bank.


Why has your credit card application been rejected?

Any application for a new credit card is evaluated on a set of parameters such as income, credit history, payment track record of other loans and credit cards (if any), etc. Every Bank has its own credit policy related to credit cards. If you do not fit in as per the policy, your application may be rejected. Generally a credit card is refused due to unsatisfactory credit history.
Alternatively, you can visit a Bank Branch and apply for a Credit Card which is issued to you against a Fixed Deposit.
Regular usage and timely payment on this card is the essence of good credit history and  you also earn safe returns at competitive interest rates on your Fixed Deposit.

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