1. Date: August 2015
2. Number of Hours: 3 Hours
3. Time: 830-1130
II. Class Schedule:
1. Course Code:
2. Course Title: M.I.S
3. Year: BSBA Operations Management
4. School: B.U.
III. Objectives
1. Describe the types of credit card accounts and the uses and payment methods of each
2. Describe the m
3. Understand how to shop for a credit card
4. Read and interpret a credit card statement
IV. Subject Matter
1.
2. Reference:
HOW IT WORKS?
CREDIT CARD TERMS
Annual Fee
The amount you pay each year to have a
credit card. Some cards have annual fees and others do not.
Annual Percentage Rate (APR)
The interest rate you will pay each month
on the unpaid balances in your account.
Balance
The total charges you have made. When you
do not pay your account in full, you are charged interest (APR) on the unpaid
or “outstanding” balance.
Billing Cycle
The length of time between billing
statements. A billing cycle is usually 30 days, but because of weekends,
holidays and number of days in a month, a billing cycle may be as short as 25
days.
Cash Advance APR
The interest rate charged when you take out
a cash advance using your credit card. Most credit cards charge a much higher
interest rate for cash advances than for regular purchases.
Interest Rate
Credit is not free! You are being lent
money by a bank. When money is lent to you, you are charged for the service.
This charge is called the interest or Annual Percentage Rate (APR).
Introductory APR
A short term, usually low, interest rate offered
by credit card companies to invite you to open an account. This interest rate
will go up after a certain amount of time.
Late Payment
A payment that is received after the due
date on the bill. Fees for late payments can range from $20 to $35 or more.
Late payments may also trigger an increase in the interest rate on your
account.
NOTE: Some credit card companies will raise
your interest rate if you are late with other payments to other credit card
companies, even if you were never late with the company that raised the rate!
Minimum Payment
Shown on your credit card statement, the
lowest amount you can pay every month without triggering additional finance
charges (besides interest). Paying only the minimum payment means you will end
up paying much more in interest. It is
the most expensive way to use your credit card.
Secured Card
Often used as a "first credit
card" or a way to reestablish your credit rating. This kind of card is
"secured" by money you deposit in a special savings account. For instance,
if you deposit $500, your credit card limit generally will be for that amount.
If for some reason you cannot pay your credit card bills, your credit card bill
will be paid from the savings account.
You can still be charged late fees and other charges.
Transaction Fees
Fees charged when you make certain types of
transactions using your credit card. Transaction fees are typically taken for
cash advances and cash-like transactions, such as money orders and wire
transfers.
Truth in Lending Act
Federal law requires lenders to tell you
about the costs, terms, and conditions at the time they offer you a loan or
credit card. But you have to read the fine print on the offer and on anything
else they mail you.
Survey the Statement
- Terms and Conditions
- Credit Limit - The most you can charge on your credit card. When you receive a new credit card, you are usually issued a set credit limit. You may be charged a fee of up to $40 for trying to go over that limit. In some cases, your credit limit may be increased or decreased.
- Grace Period
- Total Amount Due
- Minimum Amount Due
- Finance Charges
- Average Daily Balance
- Ending Balance
- Insurance
- Interest Rate
Figure Out the Fees
- Annual Fee
- Late Payment Fee
- Cash Advance Fee
- Overl limit Fee
- Card Replacement Fee
- Balance Transfer Fee
- Pre-Termination Fee
- Revolver
- Transactor
- Terminal
- Charge Slip
- Grace Period - A grace period is the time you have before a credit card company starts charging you interest on your new purchases. Most cards have a 25-day grace period. If you have an outstanding balance (you did not pay your balance in full), you will not be given a grace period. You will be charged interest on your balance.
Credit Card Account Number
Bank Identification Number
3 Dimensional Hologram
Card Verification Code/Value
The CVV Number ("Card Verification Value") on your credit card or debit card is a 3 digit number
Magnetic Stripe
Signature Panel
CREDIT CARD FRAUD
Theft
Counterfeiting/Skimming
Phishing
Credit Card generating
FINANCE CHARGES
Your First Bank SEND PAYMENT TO CREDIT CARD STATEMENT Box 1234
Anytown, USA 54321 _________________________________________________________________________________ACCOUNT NUMBER NAME STATEMENT DATE PAYMENT DUE DATE 4321-1234-5432 JOHN DOE 2/13/03 3/09/03 NEW BALANCE CREDIT LINE CREDIT AVAILABLE MINIMUM PAYMENT DUE$125.24 $1,200.00 $1.074.76 $10.00 | ||||||||
REFERENCE
|
DATE
SOLD |
DATE
POSTED |
ACTIVITY SINCE LAST STATEMENT
|
AMOUNT
| ||||
483GE7383
32F349ER3 89102DIS2 NX34FJD32 84RT3293A 873DWS321 | 1/12/03 1/13/03 1/18/03 1/20/03 2/09/03 |
1/25/03
1/15/03 1/15/03 1/18/03 1/21/03 2/09/03 |
PAYMENT THANK YOU
RECORD RECYCLER ANYTOWN USA BEEFORAMA REST ANYTOWN USA GREAT EXPECTATIONS BIG CITY USA DINO-GEL PETROLEUM ANYTOWN USA SHIRTS'N SUCH TINYVILLE USA |
-168.80
14.83 30.55 27.50 12.26 40.10 | ||||
Previous balance (+)
Purchases (+) Cash Advances (+) Payments (-) Credits (-) FINANCE CHARGES (+) Late Charges (+) NEW BALANCE (=) |
168.80
125.24 168.80 125.24 |
Current Amount Due
Amount Past Due Amount Over Credit Limit Minimum Payment Due |
125.24
10.00 | |||||
FINANCE CHARGE SUMMARYPeriodic Rate
ANNUAL PERCENTAGE RATE |
PURCHASES ADVANCES
1.65% . 1.65% 19.80% 19.80% |
For Customer Service Call: 1-800-XXX-XXXX
For Lost or Stolen Card, Call: 1-800-XXX-XXXX 24-Hour Telephone Numbers | ||||||
See reverse side for Billing Error Information.
| ||||||||
CREDIT CARD
|
ANNUAL FEE
|
APR
|
GRACE PERIOD
|
FINANCE
CHARGE CALCULATION
|
TRANSACTION
FEE
|
CREDIT
LIMIT
|
SERVICES
|
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