Nobody downloaded yet

The legal nature of cards payment and the risk of insolvency - Essay Example

Comments (0) Cite this document
Summary
Debit, Credit, Charge Cards – A Legal Analysis Introduction Credit card market in UK is a mature market which is still growing at a faster pace. As of date, credit cards in UK are issued by more than 60 financial institutions and at the close of the 2002, total expenditure through credit cards had totalled ?…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.4% of users find it useful
The legal nature of cards payment and the risk of insolvency
Read TextPreview

Extract of sample "The legal nature of cards payment and the risk of insolvency"

Download file to see previous pages There exists a cutthroat competition that prevails in the credit card market in UK as there is a high level of card literacy among British consumers and this has resulted in the expansion of the market, with the number of cards and card transactions are showing a double-growth in recent periods in spite of global economic recession. Further, spending through credit cards in UK witnessed a dramatic increase and rose to ? 41 billion in 1995 from just ?10 billion in 1985 and then up to ? 101 billion in 2002.1 This research essay will analyse in detail about credit cards, debit cards, cheque cards, charge cards, etc. and the legal nature of the above cards and how they differ from each other and precaution to be undertaken by consumers while dealing with each type of cards in an exhaustive manner. Credit Cards Credit cards are issued based on the bank’s customer’s credit history, his total wealth and his income level. The credit limit starts from a few hundred pounds to many thousands pounds. The client employs these cards to buy products and enjoy services or to get cash from the card service provider. The customer is expected to pay off his debt within the payment period and in case of any default, interest will accrue. Credit cards have some limitations as it could not be used for very large or very small payments. For small payments, credit cards cannot be used as it would not justify the cost of usage for the same. The credit cards will always have a security limit and due to security issues, these credit cards have a limit and cannot be used for large business transactions2. Secured Credit Cards Under collateralised or secured credit cards, the quantum of credit is decided by the quantum of liquid collateral one able to give and despite of one’s past bad credit history, credit cards are issued to applicants. Thus, secured credit cards are issued to those with bad credit history, people with no credit history or individuals who do not qualify for traditional credit cards. To be eligible for this, a customer has to make a deposit usually for a ?500 or more for one year or 18 months by way of certificate of deposit with the issuing banker which holds it as a security. Then, the customer has the credit limit to the value of the deposit and if the customer makes a default, then, the bank may use the deposit to adjust against the outstanding. Despite the fact, these cards still attract annual fees and interest charges that are equivalent or greater than those of regular credit cards3. Cheque Cards Cheque cards are identical in general appearance and in size to that of credit cards and contain analogues similar details. All major British banks and Irish banks are issuing these types of cards. Under this category, the bank issues a card that bears the name of the bank, its address, the customer’s specimen signature and his name, a special cheque card account number and the credit limit applicable. The cheque card issuing bank ensures to honour the cheques drawn by its customer in favour of third parties, provided the limit mentioned in the cheque card does not exceed the amount on each cheque. Before issuing the cheque cards, the banks should have to establish the creditworthiness of their customers4. It is being undertaken by the cheque card issuing bank that any cheque not exceeding a certain amount fixed by the bank will be honoured subject ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The legal nature of cards payment and the risk of insolvency Essay”, n.d.)
Retrieved from https://studentshare.org/environmental-studies/1422290-the-legal-nature-of-cards-payment-and-the-risk-of
(The Legal Nature of Cards Payment and the Risk of Insolvency Essay)
https://studentshare.org/environmental-studies/1422290-the-legal-nature-of-cards-payment-and-the-risk-of.
“The Legal Nature of Cards Payment and the Risk of Insolvency Essay”, n.d. https://studentshare.org/environmental-studies/1422290-the-legal-nature-of-cards-payment-and-the-risk-of.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The legal nature of cards payment and the risk of insolvency

Company & Insolvency Law

...a charge by a bank as a floating rather than a fixed charge meant that the holder would mean that the bank would have to endure the limitations cast on the floating charge by the Enterprise Act 2002 The insolvency pecking order from China works Ltd to the liquidator should go according to the parri passu rule. In order to understand the process in which the entire transaction is going to take place, it is pertinent to understand the legal definition of Parri Passu. “On an equal footing or proportionately. A phrase used especially of the creditors of an insolvent estate who (with certain exceptions) are entitled to payment of their debts in shares proportioned to their...
10 Pages(2500 words)Assignment

Credit Cards vs Debit Cards

...or provide you credit card pin number as an assurance that you will pay the debt later (Nelson, Nelson, & Stroup, 2012). Most people prefer using debit cards to credit card arguing that using debit cards prevents one from over expenditure since it makes one feel like you are using cash payments. The fact that debit cards are connected to a checking account enables the users limit purchases and only buys items that they can afford to pay for at the moment. Additionally, most establishments that offer debit cards do not have any charges for any transactions. On the other hand, credit cards holders have to...
4 Pages(1000 words)Essay

Cross Border Insolvency

..., although it has to be admitted that that particular concept should always be kept in mind. Such legislation should keep in mind also the attitudes and practices of all the parties involved. An attempt from the part of the legislator should be continuously made in order to create a legal framework in which all the rights (and obligations) of the parties concerned be balanced. It is submitted that insolvency law should be more geared at a desire to rescue rather than to liquidate and a decision in order to legislate the best way of how to go about achieving this balance is a decision which has by its very nature be as dynamic as possible to reflect the ever changing today=s society...
5 Pages(1250 words)Essay

Insolvency Law

...area of court jurisdiction and compare this approach to the current approach of the UK to insolvency proceedings. In conclusion this discussion will decide if the approach of extra-jurisdictional power of insolvency proceedings is bringing the EU closer together or the lack of definition around COMI will create misunderstandings and disputes throughout the region; especially in respect to the fairness of such an approach to the legal individual who has no recourse to the ECJ except in limited circumstances. COMI: The notion of COMI was formulated in Council Regulation 1346/2000 and the aim was to create a framework for the judiciary of the various EU countries to work within to create a...
20 Pages(5000 words)Essay

The Methodology of Risk Decreasing and Fraud Operations Avoiding with Payment Cards of International Payment Systems

...The methodology of risk decreasing and fraud operations avoiding with payment cards of International Payment Systems (IPS). In fact, the payment (credit) cards became more and more widespread all over the world. Therefore the ratio of fraud operations with them becomes higher. That’s why the developing of effective methodology of risk management looks like to be “a must”. Frankly speaking, you will not be able to find enough necessary information anywhere, because the methods of fraud detection are security-guarded and frequently changed. Here we tried to observe briefly the most fundamental methods of statistical...
2 Pages(500 words)Essay

Note Cards

...and family to receive treatment faster then others. (as cited in Fleming, 2006), Use as example for main idea 3 – lowering of quality Goodman, J.C., Musgrave, G.L., Herrick, D.M. (2004) Lives at risk: single-payer national health insurance around the world. Roumon and Littlefield Publishers. Information: provides 20 adverse effects of nationalized health insurance in Britain and Canada, Use in Introduction Is congress importing health care rationing from Britain? (n.d) CPR, Conservatives for Patient Rights. http://www.cato.org/pdf/HealthCareRationing_5-04-09.pdf Paraphrase and quote: The mandate of this board is to “monitor the ‘effectiveness’ of medical treatments and preventative measures” but in reality it focuses...
2 Pages(500 words)Essay

Insolvency Law

...to their operations is quite challenging and unrealistic indeed. Conclusion From the overall analysis of the study, it can be comprehended that insolvency or bankruptcy of the business units is quite common in the present day context owing to the changing nature of the markets that affects the operations of companies adversely along with the misconduct of the business units itself that lead to undesirable results. The insolvency law of the UK and in certain parts of the world intends to limit the approach of the companies where they could be forced to operate in a legal and ethical manner. However, growing instances in terms of corporate collapses and...
12 Pages(3000 words)Essay

Legal risk manager

...Corporate Legal Risk Management: Case study Effective management of legal risks within an organization inculcates the development of succinct strategies to proactively deal with legal obligations and the associated risks. The issue of appropriate legal risk management has become an ever-increasing essential component of every organization. The major aim of managing legal risks is to help businesses organizations in avoiding its operational risks turning out into legal liabilities. Legal risk management is best utilized when its objective is to highlight, evaluate and manage legal risks that are likely to affect an organization in any given way. Failure to manage any foreseeable legal risk has the potential to affect all sectors... of an...
8 Pages(2000 words)Assignment

Greeting Cards

...Greeting Cards: The Traditional Method of Communicating Feelings AFFILIATION: Contents Introduction 2 Importance of Greeting Cards in Business 2 Technology and Human Relations 3 Conclusion 5 References 6 Greeting Cards: The Traditional Method of Communicating Feelings Introduction The greeting cards are used to convey positive feelings to others in a very concise manner. The greeting cards are not limited to personal conditions, but they are applied in professional situations as well. The humans are social animals, and therefore, they cannot live without building relations with others. The greeting cards are the famous means of...
4 Pages(1000 words)Research Paper

Credit Cards

...the shortest time possible. As a student and a young adult, I want to establish a credit history. Therefore, given a chance to make a decision on which credit card type to apply, I will certainly go for a student credit card. This card will allow me as a student to use my time in college to build up credit so that once I graduate I will have a good credit foundation. A student credit card can be from the same institution where I have access; I can check my account anytime. All my financial information is in one place, and payment becomes an easy task of transferring fund between accounts. In addition, just like other credit cards, a...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The legal nature of cards payment and the risk of insolvency for FREE!

Contact Us