Credit cards in ATM

Credit cards in ATMs

Many credit cards can also be used in an ATM to withdraw money against the credit limit extended to the card, but many card issuers charge interest on cash advances before they do so on purchases. The interest on cash advances is commonly charged from the date the withdrawal is made, rather than the monthly billing date. Many card issuers levy a commission for cash withdrawals, even if the ATM belongs to the same bank as the card issuer. Merchants do not offer cashback on credit card transactions because they would pay a percentage commission of the additional cash amount to their bank or merchant services provider, thereby making it uneconomical.

Many credit card companies will also, when applying payments to a card, do so at the end of a billing cycle, and apply those payments to everything before cash advances. For this reason, many consumers have large cash balances, which have no grace period and incur interest at a rate that is (usually) higher than the purchase rate, and will carry those balance for years, even if they pay off their statement balance each month.

[edit] Credit cards as funding for entrepreneurs

Credit cards are a creative, yet often risky way for entrepreneurs to acquire capital for their start ups when more conventional financing is unavailable. It is rumoured that Larry Page and Sergey Brin's start up of Google was financed by credit cards to buy the necessary computers and office equipment, more specifically "a terabyte of hard disks".^[34] Similarly, filmmaker Robert Townsend financed part of Hollywood Shuffle using credit cards.^[35] Director Kevin Smith funded Clerks in part by maxing out several credit cards. Actor Richard Hatch also financed his production of Battlestar Galactica: The Second Coming partly through his credit cards. Famed hedge fund manager Bruce Kovner began his career (and, later on, his firm Caxton Associates) in financial markets by borrowing from his credit card. UK entrepreneur James Caan (as seen on Dragon's Den) financed his first business using several credit cards.

[edit] See also

• Adverse credit history
• Bank card number
• Code 10
• Credit card associations
  • American Express
  • Diners Club
  • Discover Card
  • Japan Credit Bureau
  • MasterCard
  • Visa
• Credit card hijacking
• Credit rating agency
• Credit reference agency
• Daskaloff credit card rating system
• Dynamic currency conversion, or DCC
• Electronic money
• Fair Credit Reporting Act
• Identity theft
• Merchant account
• Point of sale
• Revolving account
• Stoozing
• Stored-value card