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CREDIT  CARD 

MANAGE YOUR CREDIT CARD

 TAX ON CREDIT CARDS   ON IMPLEMENTATION OF GST  : 
 
Dated 04.07.2017 :     Service tax on financial services , which included Banking / credit cards / insurance  / mutual funds etc    and  was charged at 15 %  has been   now replaced by GST  at 18 %  .   But there is   fake news being circulated in social media like Facebook , Whatapp  that a customer has to pay tax twice  if pays his bills through credit cards . As per the fake news  ,  GST has to be paid twice once  on the utility bills like electricity , telephone mobile etc  and second time on credit card payment  . The news is not correct as GST will be collected  only on  service charges levied by banks  like annual fee ,  cash withdrawal charges  in ATMs  , late payment charges  etc    and not on the bill payment .  Hence there is no question of paying  GST  on paying your bills  through credit cards .   GST , like earlier service tax will be levied on the amount of service charges levied by the bank and not on the transaction value .   If you conduct your banking transactions within the limit allowed by the banks  , banks may not levy service charges and there will be no GST payment on it . 

Normally banks levy service charges on   transactions like Money Transfer , Cheque Book issue ,  Atm cash withdrawal ,  annual fee on debit / credit cards , late payment charges , penal charges etc . The list is illustrative . One has to pay  GST of 18 %  on the service charges levied  . Suppose if you draw  cash from ATM using credit card  , say Rs 5,000  and if bank charges Rs 300  as cash withdrawal charges  , you have to pay  GST of Rs 54 only  at  18 %  on Rs 300 only and not on Rs 5000  cash  withdrawn .  Similarly if you pay  mobile bill through credit card   and if you settle credit card bill within due date for payment of credit card , there will be no charges levied by bank and hence no GST . 

Hence credit card customers   can continue  to  make payments on their utility bills through credit cards  without worrying about GST . However  note  to pay the credit card bill before last date as late payments attract various charges like penalty , interest etc . Such charges may be heavy  and avoid them .

Credit Card basics - How to select one that's right for you?

 1. Think      for what  purpose  you are going to use the card.
          whether you intend to pay in full before due date
          what are the charges  issuer are going to charge
          what will be the interest rate in case of delay
          what rewards you are going to get on usage.

2. Go to websites of leading issuers and compare various cards available. 
3. If you intend pay in full , take card with least charges. Cards are available with no joining fee and no annual fee.
4. If you intend partial payment , take one with  least interest . Our advice is to   make full payment of cards before due date. Interests are very high on cards (view video below).
5. Depending up on your spending expectation like travel , shopping etc , chose  specialized cards for the purpose . you will have more reward points on such usage.

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SOME LEADING ISSUERS OF CREDIT CARDS IN INDIA

  You  can directly go to their links below and see what they offer  
ICICI BANK LTD                        
STATE BANK OF INDIA
CITI BANK
HDFC BANK LTD                       
STANDARD CHARTERED  BANK
HSBC BANK LTD
Most of the   Nationalized banks  , for  example  Indian Overseas Bank , also issue credit cards. 
If you have account with them, you can directly approach them. Even many Indian Pvt sector Bank  issue credit cards . You can use your existing relationship with the bank for obtaining credit card


TYPES OF CREDIT CARDS 

Cake for the Future

Plan your Expenses 
Plan Credit Card use 
Tweak your Bank  Account 
and  Earn Extra Income 

Click Below to Read 
HAVE CAKE AND EAT IT 

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VISA LOGO

Mastercard Logo

American express Logo

RUPAY CARD

By NET WORK : 
VISA  :  Visa Network is most popular  among all networks  which connect   Credit card Issuers , Merchants accepting the cards  and holders of cards  . Partner banks  issue   VISA branded credit  cards which signifies that  network partners of  Visa accept the cards . Visa  do not issue credit cards directly   and they connect  and facilitate payment process . 
MASTERCARD  :  Its operations are similar to Visa  and they also do not issue credit cards directly . 
AMERICAN EXPRESS :  American express  maintains network as well as issues credit cards directly . 
RUPAY :   Only Indian  Payment Network  operated by NCPI 

Safety Tips for Usage of Cards 

 1.  Sign the signature panel on the back of your card as soon as you get .
2.  Never keep your PIN code in the same place as your card.
3.  Keep your account number private.
4.  Make sure your devices and networks are secure.
5.  Shop online only on trusted web sites. 
6.  Keep your passwords a secret.
7.  Have  a tab on your account . Check often.
8.  The most important tip - 

 
USE YOUR CARD JUDICIOUSLY 

Use your card for what you need to buy . Never  buy  just  because your card has a spending limit. To understand how to manage your credit card bills efficiently, check out the video below 'Credit Card Debt Explained With a Glass of Water'.

Click Here to read 
HAVE CAKE AND EAT IT 
Earn Extra income on Expenses  by Tweaking accounts , planning expense  and Credit cards

 

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Credit Card Fraud

Although there is no way to foolproof a credit card fraud, there are ways to reduce chances or reduce the damage it can do to you.
Some tips -
1. Keep tabs on your account . Check often.
2. Store the phone number of your credit card companies in your mobile  for  stolen credit card reporting. Call them immediately once you find out your card is stolen to cancel your card, and dispute any transactions you have not made.
Videos below offer helpful advice on these matters.