Among the tools available for trade are credit cards. They have been made popular by the banks and other institutions due to their convenience and the level of security attached to them. Many merchants accept them as a means of payment for services and goods offered to their clients. Many people have also accepted them as standard means of payment, just as paying with solid cash.
Credit cards have advantages and disadvantages, both to the card holder and the merchants as well. To begin with the card holder, They poses certain advantages, like the fact that one is able to acquire goods and services even without paying cash. In addition, he earns incentives on the card such as flayer points, which means that he could redeem those points and shop free of charge.
However, these incentives are in most cases determined by the amount of interest on the card. The issues may entice you to have more interest so that you can gain more incentives, but keep in mind that the higher the interest the more you pay. Another detriment is that credit cards are an easy way of accruing debts that may lead you to bankruptcy sooner than you know it. This is because if you miss payment, the interest accumulates at a high speed. Woe unto you if you constantly miss making the periodic payments.
To the merchants, these cards are a good way of avoiding having bulk money at the store at any given point. This is because your clients do not buy in cash but in deferred arrangements. However, the merchant pays a small commission to the issuer of the card for the services of money transfer and other handling charges.