Chapter 1 - Credit cards

 
CONTENTS

1.1. How credit cards work
1.1.1. Advertising, solicitation, application and approval
1.1.2. Interest charges
1.1.3. Benefits to customers
1.1.4. Detriments to customers
1.1.5. Grace period
1.1.6. Benefits to merchants
1.1.7. Costs to merchants
1.1.8. Parties involved
1.1.9. Transaction steps
1.1.10. Secured credit cards
1.1.11. Prepaid "credit" cards

1.2. Features

1.3. Security problems and solutions

1.4. Credit history

1.5. Profits and losses
1.5.1. Costs
    1.5.1.1. Interest expenses
    1.5.1.2. Operating costs
    1.5.1.3. Charge offs
    1.5.1.4. Rewards
    1.5.1.5. Fraud
  1.5.2. Revenues
    1.5.2.1. Interchange fee
    1.5.2.2. Interest on outstanding balances
    1.5.2.3. Fees charged to customers

1.6. Over limit charges
1.6.1. UK

1.7. Neutral consumer resources
1.7.1. Canada

1.8. History
1.8.1. Collectible credit cards

1.9. Controversy
1.9.1. Hidden costs
1.9.2. Redlining

1.10. Credit card numbering

1.11. Credit cards in ATMs

1.12. Credit cards as funding for entrepreneurs

Chapter 1 - Credit cards

1.12. 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". Similarly, filmmaker Robert Townsend financed part of Hollywood Shuffle using credit cards. 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.

Source: wikipedia.org

1.12. Credit cards as funding for entrepreneurs