Credit cards are easier to recognize because their features are different from debit cards.
The use of a credit card is one of the cards issued by certain banking services to each user so that they can purchase goods or services from companies that have accepted the card without paying cash.
It can be said that a credit card is electronic money that has been issued by an institution that allows users to obtain credit in conducting transaction activities whose repayment can be made directly and on time.
Credit cards are also used as a payment substitute for cash that can be used in conducting transaction activities, whether it is for goods or services to receive payment using a credit card.
What is a Credit Card?
Availability of credit cards has been widely used by the public with a long history, making it a legitimate payment transaction tool used today.
Credit cards are a payment instruments that can be used as a card to support shopping transaction activities or for cash withdrawals.
The obligation to make payment transactions using a credit card is fulfilled first by the credit card issuer, and the cardholder can make payments at the agreed time, either directly or in installments.
Based on the purpose of creating a credit card and the definition according to Bank Indonesia regulations, a credit card is a payment instrument and not a tool for debt or reserve funds.
Characteristics of Credit Cards
When using a credit card, there are differences in the physical appearance of the credit card compared to a debit card. Although both have a similar appearance, there are specific characteristics of a credit card.
One way to distinguish between the two cards is to look at the front of the credit card, which has several other information such as the printed card validity period, the printed card number with a raised appearance, the bank name or logo of the issuer, the cardholder’s name printed in raised letters, and holograms or 3D images on the surface of the card, usually found on MasterCard credit cards.
On the back of the credit card, there is also other information such as the magnetic stripe, the cardholder’s signature, and the printed card number or debossing number that is already listed on the front of the credit card as a characteristic of a credit card that can be recognized.
Types of Credit Cards Based on Limit
When determining the credit card limit, the bank will consider the monthly income of the customer as a benchmark for their ability to make payments. Here are some types of credit cards based on their limit:
1. Classic Credit Card
This type of credit card has the lowest limit compared to other types. Additionally, it has lower fees compared to other credit cards which tend to have higher fees than classic credit cards.
Typically, this credit card offers a limit of up to 5 million with a minimum income requirement starting from 3 million. This can be understood by users when they want to use the classic credit card within its limit.
2. Gold Credit Card
The gold credit card is one level up from the classic credit card. It is suitable for first-time credit card users with a monthly income starting from 5 million.
This credit card offers a limit of up to 40 million and a very high ceiling, providing convenience for transactions such as purchasing goods or using other services.
3. Platinum Credit Card
This type of credit card is suitable for employees or businesspeople with a monthly income starting from 25 million. The limit for using a platinum credit card can exceed 75 million.
4. Signature Credit Card
The signature credit card is generally aimed at priority customers with a monthly income starting from 30 million. This lifestyle credit card also offers a limit ranging from 100 million to an unlimited amount.
In addition to the high limit, the signature credit card also has exclusive facilities and services compared to other types of credit cards. This is very beneficial for those who have large expenses when using this credit card.
5. Infinite Credit Card
This type of credit card can only be owned by a few people who already have assets or a monthly income starting from 50 million. The credit card limit can start from 50 million to an unlimited amount.
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Generally, the higher the credit card limit, the higher the annual fee that will be charged to the user. For example, the classic credit card has an annual fee ranging from 0 to 100,000, while the annual fee for this credit card ranges from 500,000 to over 4 million.