Finance and financial system

Annual fee, Finance charge, grace period.

Financial institutions may charge an annual fee for their credit cards. This is the amount they charge you to use the card for a year. “Finance charges” are the amount of money you pay to a lender for the privilege of borrowing money, including interest and other service charges. The grace period is the length of time, as defined in the cardmember agreement, between the use of credit for purchases and the start of interest on the amount charged.

Statements and e-mail alerts.

Every month, your credit card company will send you a monthly accounting document that lists all of your charges and payments, finance charges, the total amount you owe, and the minimum amount due. Every time you use your card, save your receipt. Every month, compare your receipts to your statement. Many companies let you check your transactions and make payments online, and offer e-mail alerts so you know when it’s close to your credit limit and payment due dates.

THE ARTICLE                          

Forty million credit cards hacked BNE: What is your worst nightmare? How about opening your credit card statement and seeing thousands of dollars worth of purchases you never made? This is a possibility for 40 million credit cardholders worldwide following a security breach at a major data processing center. U.S.-based Card Systems Solutions Inc., which processes transactions for banks and merchants around the globe, has issued a press release* saying it “identified a potential security incident” in May. Hackers infiltrated the system and made off with the personal details of up to 40 million people – the same number as the entire population of Spain. Card Systems immediately contacted the Federal Bureau of Investigation, which in turn notified VISA and MasterCard. The company said it is currently “completing the installation of enhanced/additional security procedures”. Meanwhile, the world’s banks are working overtime changing the account details of concerned and irate cardholders Card Systems Inc. expressed sympathy with anyone who may have lost confidence in the integrity of credit card security or suffered anguish as a result of the breach. It said: “We understand and fully appreciate the seriousness of the situation.” It also assured the business world its primary focus was client oriented. The press release said: “Our customers and their customers are our lifeblood. We are sparing no effort to get to the bottom of this matter.”

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