Make a concise explanation and real life examples on every bullet topics ().

TRANSACTION AND POSTING DATES - The date on which a credit cardholder makes a purchase (or receives a credit, as described later in this chapter) is known as the transaction date.

DUE DATE - The due date is the specific day by which the credit card company should receive payment from you.

Computation of Finance Charges

• Companies that issue credit cards must tell consumers the APR applied as well as the method used to compute the finance charges. In addition, they must disclose the periodic rate. -Given Scenario for periodic rate.
• Typically, the finance charge is calculated by first computing the average daily balancethe sum of the outstanding balances owed each day during the billing period divided by the number of days in the period. The periodic rate is then applied against that balance. -Given Scenario for Computation of Finance Charges:

Correcting Errors on Your Credit Card Statement

Fair Credit Billing Act (FCBA)

Helps people who wish to dispute billing errors on revolving creditaccounts.

Chargeback

The amount of the transaction is charged back to the business where the transaction originated in the case of a dispute or challenge by the cardholder.

Consumers obtain installment credit in two ways.

Cash loan

the borrower receives

cash and then uses it to make purchases, pay off other loans, or make investments.

Purchase loan

(also called sales credit)

the consumer makes a purchase on credit with no cash transferring from the lender to the borrower.

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