Operation
Many charge cards have the option for users to pay for some purchases over time. American Express charge card customers, for instance, can enroll in the Extended Payment Option (internally referred to as ExPO) to be able to pay for purchases over $200 over time, or in Sign & Travel to be able to pay for eligible travel-related expenses over time.
Most charge cards also have a feature called No Preset Spending Limit (NPSL). While consumers often take NPSL to mean that their cards are without limits, NPSL really means that a card’s limit changes, often from month-to-month, based on factors such as consumer charging and payment history as well overall economic trends. According to a CardHub.com NPSL study, the way NPSL charge cards are reported to the major credit bureaus varies by issuer and can lead to artificial increases in credit utilization, thereby lowering one’s FICO Score.
Governments and large businesses often use charge cards to pay for and keep track of expenses related to official business; these are often referred to as purchasing cards. Some high-end retailers like Neiman Marcus issue charge cards to customers. Some American Express and Diners Club cards are also charge cards, rather than credit or debit cards like VISA and MasterCard.
Read more about this topic: Charge Card
Famous quotes containing the word operation:
“Human knowledge and human power meet in one; for where the cause is not known the effect cannot be produced. Nature to be commanded must be obeyed; and that which in contemplation is as the cause is in operation as the rule.”
—Francis Bacon (1560–1626)
“Waiting for the race to become official, he began to feel as if he had as much effect on the final outcome of the operation as a single piece of a jumbo jigsaw puzzle has to its predetermined final design. Only the addition of the missing fragments of the puzzle would reveal if the picture was as he guessed it would be.”
—Stanley Kubrick (b. 1928)
“You may read any quantity of books, and you may almost as ignorant as you were at starting, if you don’t have, at the back of your minds, the change for words in definite images which can only be acquired through the operation of your observing faculties on the phenomena of nature.”
—Thomas Henry Huxley (1825–95)