ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The credit card issuer pays the store.
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The money is immediately deducted from your account.
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The amount of the purchase is deducted from a prepaid account.
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The place where you made the purchase receives the money within 24 hours.
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Detailed explanation-1: -When you use a credit card to make a purchase, you’re essentially using the credit card company’s money. You then pay that money back to the credit card company, with or without interest, depending on the timing of your payment. Your credit card company gives you a credit limit you can make purchases against.
Detailed explanation-2: -Pros of paying a credit card bill with another credit card And there are some immediate benefits to paying off a credit card using another card, including: Lower APR and interest savings: If you’re transferring a balance from a card with a high APR to one with a lower APR, you’ll save money in interest.
Detailed explanation-3: -Q. When you make a credit card purchase at a store, who do you agree to pay? The store.
Detailed explanation-4: -The merchant sends their batched approved authorizations to the payment processor. The payment processor sends the authorizations to the card association. The card association forwards them to the issuing bank. The issuing bank transfers the funds to the merchant bank and charges an ‘interchange fee".
Detailed explanation-5: -Only Making Minimum Payments Means You Pay More in Interest Plus, only paying the minimum means you’ll be in debt for much longer. Why? Only a small percentage of a minimum payment is applied to the card’s principal balance-the remainder takes care of the accrued interest and fees.