store cards

store cards are atype of credit card but they are issued by stores rather than by banks . for customers , they have two disadvantages : they can usually be used only in selected stores and their interest rates are higher than those charged by VISA and Access . an advantage is that cardholders can receive discounts on purchases and visit previews of sales . for example , occasional late-night receptions or pre-christmas sales events can be held for cardholders.
from the store is viewpoint their advantages are that their cardholers constitute aknown customer base ,to whom they can send details of sales and special offers , and that they do not have to pay commission to visa and access .to some extent the stores must charge higher interest rates because of the absence of any "merchants" commission", as it is called .A disadvantage can arise if the average transaction is too small . boots , for example ,withdrew its charge card in 1988 mainly because the processing costs of numerous small transactions were more than the interest received on the outstanding balances .
marks&spencer is charge card is probably the best known storecard . it now has alarge cardholder base of well over 3 million ,and it has used this base to launch itis own unit trust . personal loans are also available and apension scheme and life insurance have been introduced . there is also abudget account with acredit limit of 25 times the monthly payment by the cardholder .
cardit cards , along with all forms of "plastic money" ,are the fastet-changing part of banking and finance - further changes can be expected every year.