The Britannica Encyclopedia defines a credit card as a small-scale card made of plastic which empowers the named individual to make purchases on credit and be billed at a later date. To Berlin and Master (2004), credit cards provide the customer with an option to borrow money from the lender issuing the card (Berlin and Master, 2004). For example, everyday we see credit card holders paying for their purchases without the need for balance on the card itself, normally at a set interest rate and often with an annual fee.
Furthermore, Slackening and Shaffer (2002) several credit cards provide some degree of nonuser protective covering in case of a disagreement between seller and buyer. For example, Barclay Bank offers a protection cover of E,000 to E 100,000 against fallacious use of cards (Cardholder Protection full details , 2013). In addition, So and Thomas (2011)assert that individual credit card usage and account management data is used by lenders to give behavioral score to cardholders so as to ascertain their credit rating.
For example, early payment of Argos credit card leads to increase in credit limit. What is a Debit Card? Debit cards are utilized in order to make payments or to withdraw money from seers current account (Leslie, 2013). User’s current account (Leslie, 2013). Debit cards are increasingly being used for online shopping. For example, in 1997 Barclay Bank initiated C-CAM/PC smart card which can be plugged into any PC to make payments at consenting Belgian web sites; till 2000 around eight thousand smart card users were reported (Haitian and Landed, 2000).
Additionally, pre-paid credit cards with zero floor limits are used by issuers to enable users with bad credit ratings or risk factor to make card purchases (Corrosion, 2005). For example, launched in 1997, Solo boasts 5. Million users in the I-J including young people (How to get a Solo Debit Card, 2013). Debit cards are often tied to rewards programs to influence consumer choice of payment methods; for example Chining and Hashish (2010) found decrease in both credit and debit card use by four percentage points upon removal of rewards.
Difference between Credit and Debit Cards Credit cards are not linked to current accounts (Leslie, 2013). Debit cards are linked to current accounts (Leslie, 2013). Credit card purchases are indemnified for fraud risks (Shop with credit, not debit, 2002). Debit card purchases, on the other hand, do not have same safeguards as a credit card (Shop with credit, not debit, 2002).
Purchase Order Form You are now going to design and then fill in a purchase order form in order to buy a new computer and printer.
A purchase order is a legally binding document outlining the description of purchases in to preserve the interest of both buyer and seller (Working with Purchase Orders, 2013). Functions of Purchase Order Whilst a purchase order communes customers’ product and pricing requirements to the seller to avoid any pricing disputes, it can also be used to cross-check invoices and shipped products; it can also serve as a legal document or default cases in courts (Working with Purchase Orders, 2013).
Delivery Note Next you are to prepare and fill in a delivery note for the computer and printer that you have just ordered.
Functions of Delivery Note: A delivery note not only confirms that good or services were dispatched to the designated address but also serve as a checking list against which received items can be examined by the buyer.
Sales Invoice Now you are to prepare a sales invoice to a customer (Sailboard PAL). Their order is for 12 large Environ refrigerators. The catalogue price is IEEE. 00 net. However they are entitled to a trade discount and a 2% cash discount if the pay within their 30 day credit period. Total the invoice and state in your work the amount that they will actually have to pay if they pay on time.