Credit card is a means of payment in lieu of cash that can be used by consumers to be exchanged for goods and services they want at places that can accept payments using credit cards (merchants).
The longer the use of credit cards in Indonesia is getting wider. The development of the use of credit cards occurs quickly because there are many conveniences obtained from using credit cards. Credit cards are considered to be more effective and efficient compared to other payment instruments, so they are also better known in the community.
People usually use credit cards for payment for transactions made via the internet or in shops that provide payment services by credit card. In transactions made via the internet, the card holder has the obligation to pay for the goods he bought and has the right to receive the goods he has purchased from the merchant, and vice versa the merchant has the obligation to send the goods in good condition and the specifications are in accordance with what was ordered by the card. holder and is entitled to receive payment.
The rapid development of the use of credit cards is because people feel the increasing importance of using credit cards as a means of payment and taking cash considering the practicality, comfort and security it creates.
Related Parties in Credit Cards:
a. The credit card issuer is the party that issues the credit card.
b. Acquirer is the party that manages the use of credit cards, especially in terms of billing and payments between the issuer and the merchant.
c. A card holder is an individual who has met the requirements set by the issuer to be accepted as a member and has the right to use a credit card according to its use.
d. Merchants are parties who receive payments by credit cards for buying and selling goods or services.


Classification of credit cards by function:
1) Credit card is a type of card that can be used as a means of payment for buying and selling goods or services where the payment can be made at once or in installments of a certain minimum amount.
2) Charge card is a card that can be used as a means of payment for a sale and purchase transaction of goods or services in which the customer must pay back the entire bill in full on a certain date without additional fees.
3) Debit cards are the same as cash transactions, namely by debiting the account balance at the bank.
4) Cash card is a card that allows to withdraw cash.
5) Check guarantee card, which is a card that can be used as collateral for check withdrawals by the cardholder.
Difference between Credit Card (Credit Card) with Debit Card and Charge Card.
1) Credit Card (Credit Card):
a) There is a credit limit,
b) Minimum payment between 10% – 20% of the total bill and paid no later than the due date,
c) Interest is charged on credit balances,
d) After the due date, if there is still an unpaid balance, a late charge will be imposed.
2) Debit Card:
a) The cardholder must have an account at a bank,
b) Transactions can only be made if the cardholder has sufficient balance to cover the transaction fees,
c) Payment is made by direct debiting the cardholder’s account balance and crediting the merchant’s account.

3) Charge Cards:
a) Generally there is no usage limit provision in conducting transactions,
b) Full payment of all invoices before the next billing,
c) In the event of arrears, a late charge will be imposed.
d) There is no interest charged for each bill payment.

b. Classification of credit cards by region of validity:
1) Local credit cards are credit cards that are valid and can be used in certain areas, for example in Indonesia, for example: Hero card, Astra card, Garuda executive card.
2) International credit cards are credit cards that can be used and are valid as international payment instruments, for example: Visa Card, Master Card, Diners Club Card, American Express Card.


a. Source of credit, because credit cards can be used as an instrument to obtain credit/loans.
b. Source of cash, because credit cards can be used to get cash through ATM counters (Automated Teller Machines). By showing a credit card (Visa Card and Master Card), in any country at a bank that has cooperation with the card manager, the cardholder can withdraw cash.
c. Assurance checks, credit cards issued by some banks can be used to guarantee the withdrawal of checks.


The concept of a credit card is as a personal identification tool intended to delay payments for buying and selling goods and services.
Credit card company goals include:
a. Accept as many customers who have creditworthiness as possible,

b. Accept trusted merchants,
c. Stimulate the maximum use of credit line facilities,
d. Limiting and reducing bad debts and fraud,
e. Maximize the average value of each card transaction.


a. Prospective members must submit an application and fulfill the requirements including signing an agreement with the credit card company (issuer/acquirer).
b. Prospective members must meet the basic requirements, namely meeting the minimum standard of annual income.
c. Prospective members who meet the requirements will be given a credit card.
d. Credit cards can be used for transactions at payment points or merchants that have a credit card logo installed.
e. Credit card holders will receive a billing statement periodically.
f. Credit card holders pay installments and interest

Basic agreement for using credit card:
The agreement between the credit card holder (card holder) and the credit card issuer (issuer) contains the main provisions, including:
a. credit card possession,
b. Credit card validity period
c. transactions,
d. Bill payment,
e. Interest and fees,
f. credit limit,
g. Cash withdrawals, transactions in foreign exchange,
h. lost credit card,
i. third party services,
j. The responsibility of the credit card holder,
k. termination of the agreement,
Billing Statement:
The issuer will send a billing statement every certain date to the cardholder’s address containing information, including:

a. Credit card number,
b. bill date,
c. Due date,
d. minimum payout,
e. The amount of the bill,
f. credit limit,
g. cash withdrawal limit,
h. Arrears,
i. post date,
j. Transaction date,
k. The reference number is the identity number of each transaction

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