The agreement between credit card holder and the issuer bank to pay the amount spent on purchase of goods or services is credit card payment.
After a payment, the sign on the receipt or using the PIN/CVV in case on online/on phone purchase is a promise to pay the issuer bank the amount, which can be paid depending on the terms and conditions specified by the bank .
The verification of the authentication and authorization is done at credit card payment terminal, system with a communication link with the merchant’s acquiring bank.
The bank sends the credit card statement generally at the end of the month, with the transactions, any outstanding fees and the total amount owed within the due date. Banks help send you a reminder as well through sms or email alert.
A minimum amount can be paid till this date, failure of this would cause the card bearer to pay an amount calculated based on
• Principal amount
• rate of interest
• and time delayed
This payment can be done through various means as provided by the bank.
- It can be done by depositing a cheque/draft either in bank branch or an ATM centre(make sure to mention your credit card number on the cheque)
- online on the bank’s website
- on phone, call customer care
- There is also an option to make use of auto debit, but keep an eye on the statement, and not just let the amount be deducted automatically.
Making credit card payment helps you maintain a good credit history and earn points, which can be redeemed as gifts etc offered by banks.