How does a credit card work?

Credit cards can be used to make purchases online or in stores and pay bills. When you use a credit card for either one, your card details are sent to the merchant’s bank. The bank then gets authorization from the credit card network to process the transaction. Your card issuer then has to verify your information and either approve or decline the transaction.

If the transaction is approved, the payment is made to the merchant and your card’s available credit is reduced by the transaction amount. At the end of your billing cycle, your card issuer will send you a statement showing all the transactions for that month, your previous balance and new balance, your minimum payment due and your due date.

The grace period is the period of time between the date of a purchase on your card and the due date listed on your statement. During this period if you pay your bill in full by the due date, no interest charges accrue. But if you carry a balance month to month, your card issuer can charge you interest. Your credit card’s annual percentage rate or APR reflects the cost of carrying a balance on an annualized basis. Your APR includes both your interest rate and other costs, such as an annual fee if your card has one.

The Institute of Chartered Accountants of India (ICAI) is a statutory body established by an Act of Parliament, viz. The Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for regulating the profession of Chartered Accountancy in the country. The Institute, functions under the administrative control of the Ministry of Corporate Affairs, Government of India. The ICAI is the second largest professional body of Chartered Accountants in the world, with a strong tradition of service to the Indian economy in the public interest.

The affairs of the ICAI are managed by a Council in accordance with the provisions of the Chartered Accountants Act, 1949 and the Chartered Accountants Regulations, 1988. The Council constitutes of 40 members of whom 32 are elected by the Chartered Accountants and the remaining 8 are nominated by the Central Government generally representing the Comptroller and Auditor General of India, Securities and Exchange Board of India, Ministry of Corporate Affairs, Ministry of Finance, and other stakeholders.

Visit The ICAI Website

Subscribe To Our Learning Material.

Notifications are a great way to receive updates on articles, knowledge base or newsletters. We don’t spam inboxes.

Enter your name*

Enter your email address*

Educational Qualification*
Need to select an educational qualification.

Occupation/Profession*
You need to select a user type.

Professional Qualification*

Experience*

Enter your contact number*
+91

Select topic*
You need to select a topic.

Select state*
You need to select a state.

Select language*
You need to select a language preference.

Select the material required*
Article Video PPT Lecture
You need to select atleast one material type.

Thank You for subscribing to our learning material. Details have been shared on your email-id.

Register As Resource Person / Volunteer

Students, Professionals are encouraged to share their articles. The articles will be reviewed by the Content Committee on a monthly basis and they reserve the right to publish (or not publish) the article. The articles must be original contribution and must not have been published elsewhere.

Enter your name*

Enter your email address*

Educational Qualification*
Need to select an educational qualification.

Occupation/Profession*
Need to select a user type.

Professional Qualification*

Experience*

Enter your contact number*
+91

Select Area Of Expertise*
Need to select area of expertise.

Select state*
You need to select a state.

Select language*
Need to select a language preference.

Register as resource person for*
Article Video PPT Lecture

Upload Article *
Allowed filetypes are pdf and docx.

Thank You for showing your interest for volunteering as resource person and/or to contribute to learning material, this is subject to declaration and vetting by subject matter expert.