What is the difference between a store credit card and an ordinary credit card?(1 point) Responses An ordinary credit card can be used only at the business that issued it. An ordinary credit card can be used only at the business that issued it. A store credit card generally comes with a higher interest rate. A store credit card generally comes with a higher interest rate. An ordinary credit card is co-branded with one of the major credit card networks. An ordinary credit card is co-branded with one of the major credit card networks. A store credit card allows you to pay with funds taken directly from your bank account.
An ordinary credit card can be used at any business that accepts credit cards, while a store credit card can only be used at the specific business that issued it. A store credit card typically comes with a higher interest rate compared to an ordinary credit card. An ordinary credit card is co-branded with one of the major credit card networks, such as Visa or Mastercard, while a store credit card is typically only affiliated with the specific store or retailer. A store credit card does not allow direct payment from your bank account.
The main difference between a store credit card and an ordinary credit card is how and where they can be used.
1. An ordinary credit card can be used at any business or merchant that accepts the major credit card networks like Visa, Mastercard, American Express, or Discover. This provides more flexibility and convenience in terms of where you can use the card.
2. A store credit card, on the other hand, is usually co-branded with a specific retailer or business. This means that it can only be used at that specific store or its affiliated locations. So, if you have a store credit card from Store X, you can only use it at Store X and not at other retailers.
3. Another difference is the interest rate. Store credit cards generally come with higher interest rates compared to ordinary credit cards. This means that if you carry a balance on a store credit card, you may end up paying more in interest charges over time.
4. It's also worth noting that while both types of cards can be linked to your bank account for payment, a store credit card does not necessarily allow you to pay directly from your bank account. It still operates on a credit basis where you make purchases on credit and then repay the amount owed at a later date.
To summarize, store credit cards are more limited in terms of where they can be used, often come with higher interest rates, and do not necessarily allow for direct bank account payments.
The main difference between a store credit card and an ordinary credit card lies in their usage and terms.
An ordinary credit card can be used at any business or establishment that accepts credit cards, regardless of where it was issued. These cards are usually co-branded with one of the major credit card networks such as Visa, Mastercard, American Express, or Discover. This means that they can be used not just at the specific business that issued the card, but also at numerous other merchants around the world.
On the other hand, a store credit card is typically issued by a specific retailer or store. It is primarily intended to be used for purchases made at that specific business or within its associated chain of stores. Unlike an ordinary credit card, a store credit card is usually not co-branded with a major credit card network. This means that it can only be used at the business or its affiliated stores.
Another difference to consider is the interest rate. Store credit cards often come with higher interest rates compared to ordinary credit cards. This is because store credit cards are generally designed to incentivize customers to make purchases at the specific store by offering exclusive discounts, rewards, or benefits. However, the higher interest rate on store credit cards means that carrying a balance on such cards can lead to higher interest charges if not paid off in full each month.
Lastly, the statement about a store credit card allowing you to pay with funds taken directly from your bank account is not accurate. Both store credit cards and ordinary credit cards are typically used to make purchases on credit rather than directly withdrawing funds from your bank account. However, it's important to note that some store credit cards may offer options for linking the card to your bank account for automatic payments, similar to ordinary credit cards.