How Does Credit Card Work In India

As their name suggests, credit cards are used to borrow and spend money. Credit cards come in handy when you don’t have enough cash to buy something. Here’s the catch, though: you have to consider your needs. Daniel Palmer gives an excellent definition of credit cards in the post below. What you need to know about how credit cards work:


Keep only one credit card with a reasonable limit to use it only when you don’t have enough cash to buy anything. You should only borrow as much as you can repay without jeopardizing your other assets.


  • Avoid buying things you don’t need.
  • Using multiple credit cards is not recommended. Various fees and charges are an easy trap for you to fall into if you don’t handle them wisely.
  • Rewards RBL credit card points value isn’t very useful, and people can’t keep track of them since they are hard to track.
  • Choose credit cards that offer instant cashback so that you can earn some funds while you spend some.
  • User experience analysis indicates that it’s difficult to close a credit card once you acquire a credit card. If you decide to exit the process, there is virtually no transparency.
  • When there is a dispute or a duplicate transaction, it is cumbersome to settle the dispute.
  • It is advised to use your debit card when you have sufficient funds with you. This way you can keep track of your money, as you’ll only spend when you have it.

How does one get a credit card in India, and why?

Each credit card has its pros and cons. You should only consider a credit card once you know how credit cards work and are sure that you can repay the borrowed amount on time. If not, you will be charged an additional 36% interest rate. 

A credit card is a payment card that is issued to cardholders to enable them to pay merchants for goods and services. The cardholder promises the issuer to pay them back for the amount paid and any charges agreed upon. 

Credit card issuers provide the cardholder with a line of credit and a revolving account, which allows the cardholder to borrow money to make payments to merchants or get cash advances.

Credit cards: How they work

You present a credit card to make a payment for a TV. Through a card reader, data on your card’s magnetic stripe is read, and information detailing the merchant and purchase amount is added. An electronic message sent by the merchant’s acquirer is automatically received. As soon as you enter the message, the computer identifies the card and will verify that you have sufficient credit to cover the purchase. Afterwards, you must sign the credit charge receipt that is printed out. The entire process takes just seconds. 

As soon as a merchant requests payment, the acquirer submits the request to the card payment partner. Bajaj Finserv posts your transaction to your Bajaj Finserv account by transmitting the request. This transaction is consolidated with all other transactions and is settled among banks.

There is about a 2% difference between the amount you paid for the TV and the amount they receive. Merchant discounts are paid to the acquirer at a rate of 2%. The acquirer retains a portion of the purchase price, and 1.4% goes to the issuer.

Sam Dilan

One of the contributors to this website is Sam Dilan. She has written articles for a long time. She is also an expert in search engine optimization (SEO). You'll be able to find her name mentioned in a lot of different news, <a href="">articles posts</a>. She is a well-known author of this current generation. <a href="">Blogwi</a> is the name of the website that she created herself.

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